Is ‘renting for life’ an option you’ve ever considered?
Just because you’re young, educated and upwardly mobile doesn’t necessarily mean you share the great Australian dream of one day owning your own home. At least that’s what a new wave of build-to-rent (BTR) developers destined to hit Australia’s residential rental market are banking on.
Popular in the UK and the US, the build-to-rent model is based on developers renting out their own apartments rather than on-selling to multiple buyers. The build-to-rent concept is brand new to Australians, but with home affordability now outside the reach of many, there appears to be a ready-made market waiting to soak up demand.
Then there are those who simply aren’t attracted to buying their own home, regardless of whether they can afford it or not.
If the overseas build-to-rent model is anything to go by, local developers will be offering you a whole bunch of inducements to stay a lot longer in one of their apartments, like concierge, swimming pool, gym and other amenities. While most mum and dad landlords typically offer a standard one, and if you’re lucky two year lease, the build-to-rent brigade might be willing to lock you in for potentially up to ten years or even more.
A handful of local developers are already in varying stages of bringing build-to-rent projects to market. Some of these are in highly sought after CBD locations, like Grocon’s Southbank development at Docklands where tenants have employment and lifestyle options right at their doorstep. Salta Properties also has a build-to-rent development at nearby Latrobe Street and is in the throes of planning another one at Richmond.
More build-to-rent projects will progressively come to market across Australia over the next ten years. This will give Next-gens, yet to hit the workforce (and others) the best of both worlds: The security of longer rental terms, typically associated with home ownership, greater choice of otherwise unaffordable locations, and potentially more amenities in return for their loyalty.