THE PSYCHOLOGIST : A revolution in how Aussies rent a home is coming, with the build-to-rent model booming

A revolution in how Aussies rent a home is coming, with the build-to-rent model booming

For a company to manage a large number of tenants, the tenants have to be fairly high-quality. Ones who need a lot of management are just not a viable proposition. Management is expensive. So the company will be very selective about whom they house, with a particular preference for tenents who are in regular employment.

That will rule out many poor tenants. So such tenants will be thrown back into charity housing, which will often be problematic for them, if they can access such housing at all. So the projects described below will not have much impact on the rental shortage.

The only real way out of the shortage is to incentivize private landlords. But the brainless Left are more likely to handicap landlords with onerous regulations. I own a spare apartment that I could let out but I do not do so as I don't like the complications I would risk. I prefer to keep it available for occasional family use

A rapidly growing part of the housing market worth more than $100 billion over the next decade is set to revolutionise how Australian renters live.

Ordinarily, property developers bring a project to life with the intention of selling dwellings to buyers or investors at the end to make a profit, but a new scheme turns that traditional model on its head.

Build-to-rent (BTR) describes the development of an apartment complex with the express intention of retaining all those dwellings to lease them out. It’s a well-established model in the United States and the United Kingdom but is still in its infancy in Australia – but not for long.

A recent report from EY estimates BTR in Australia will produce 175,000 new homes over the next 10 years.

The potential for investors – and the promises for tenants of a new and improved way of renting – has sparked a lot of excitement.

BTR has the potential to dramatically boost housing supply, thus aiding affordability, but also to provide a more secure and stable lease that reduces the need to move as often and fosters a closer sense of community.

Plus, those active in the space now are creating complexes with a raft of high-end features, from five-star communal spaces to luxury resident services.

Some will cater to multi-family living situations, with larger and unfurnished properties on offer, while others will target co-living and flatmate scenarios, or singles and couples, both young and old.

One-third of Aussies are now renting – and research shows younger people especially are renting for longer, not just because of property prices but due to changing lifestyle needs and wants.

But instability in rental markets, driven by fluctuations in private rental investor activity, means many tenants are forced to move often and face price hikes.

While still emerging, BTR offerings in the market currently have been inundated with interested tenants because of their point of difference.

LIV by Mirvac is a major operator in the BTR, with several projects in planning or development across Melbourne, including at the iconic Queen Victoria Markets.

Its flagship complex, LIV Indigo at Sydney Olympic Park, has been a roaring success, with a 96% occupancy and more than 10,000 enquiries since launch.

Angela Buckley, general manager of Mirvac’s BTR program, said the LIV model was geared towards long-term tenants by being pet friendly, offering secure leases, not requiring a bond, and allowing residents to personalise their homes by painting or hanging up pictures.

“The opportunity in front of us is not to improve the existing rental system, but to create a whole new system altogether,” Ms Buckley told a recent Property Council function of the scheme.

“It’s one that is far greater than providing better renting the real opportunity is to play an active role in helping everyday Australians live better.”

LIV complexes have a range of communal facilities for residents, from media rooms and bike workshops to co-working spaces, storage facilities, children’s play areas and shared entertaining areas.

The likely end owners of the developments contribute significantly to lease security and stability, allowing for long-term renting.

Rather than a landlord who’s likely to be a mum-and-dad investor, and who may buy and sell out of investments over a relatively short period of time, BTR assets will mostly be held by institutional and major corporate investors.

In some cases, that’s likely to be Australian superannuation funds and overseas pension funds.

BTR operator Assemble Communities, which has a particular focus on affordable housing, has partnered with Australian Super, with the fund taking a 25% stake.

Assemble has a pipeline of 4000 dwellings across inner-Melbourne and has already delivered projects in Clifton Hill and Kensington.

A report from Savills Australia released in February noted that residential rental vacancy rates nationally have fallen or remained extremely low over the past year, while rents, on average, are rising.

“Data indicates that nearly 70% of all [local government areas in Australia] had less apartments available for rent in [the final three months of] 2021 compared to two years prior, and are now in need of new rental supply,” the report found.

“This undersupply of accommodation is fuelling current rental growth to levels far in excess of historic growth.”

The latest fluctuations in private rental markets, dominated by mum-and-dad investors, is partly to blame, it said.

“A growing number of landlords [have exited] the market, taking advantage of pent-up buyer demand and aggressive capital growth.”

https://www.realestate.com.au/news/a-revolution-in-how-aussies-rent-a-home-is-coming-with-the-build-to-rent-model-booming/

No comments:

Background

The essence of conservatism is caution. The essence of Leftism is anger

This blog is written solely by John Ray, who has a Ph.D. degree in psychology and 200+ papers published in the academic journals of the social sciences. It does occasionally comment on issues in psychology but is mainly aimed at giving a conservative psychologist's view on a broad range of topics. There are very few conservative psychologists.

The blog originated in Australia and many (but not most) posts discuss Australian matters. Australians have an unusually good awareness of events outside their own country. Australian newspapers feature news from Britain and the USA not as an afterthought but as a major part of their coverage. So Australians do tend to have a truly Western heart, which is the reason behind the old name for this blog. So events in Australia, Britain and the USA all feature frequently here, plus occasional coverage of other places, particularly Israel.

A primer in American politics for non-Americans:

SCOTUS is the Supreme Court of the United States, the highest court in the land

The "GOP" stands for "Grand Old Party" and refers to the Republican party. The GOP is at present center/Right, while the Democrats have been undergoing a steady drift Leftwards and now have policies similar to mainstream European Leftist parties.

The ideological identity of both parties has however been very fluid -- almost reversing itself over time. In the mid 19th century, the GOP was the party of big government and concern for minorities while the Democrats advertised themselves as "The party of the white man" -- an orientation that lasted into the mid 20th century in the South. The Democrats are still obsessed with race but have now flipped into support for discrimination AGAINST whites.

Was Pope Urban VIII the first Warmist? Below we see him refusing to look through Galileo's telescope. People tend to refuse to consider evidence— if what they might discover contradicts what they believe.

Global warming

Calibrated in whole degrees. Larger graph here

Climate scientist Lennart Bengtsson said. “The warming we have had the last 100 years is so small that if we didn’t have meteorologists and climatologists to measure it we wouldn’t have noticed it at all.”

The term "Fascism" is mostly used by the Left as a brainless term of abuse. But when they do make a serious attempt to define it, they produce very complex and elaborate definitions -- e.g. here and here. In fact, Fascism is simply extreme socialism plus nationalism. But great gyrations are needed to avoid mentioning the first part of that recipe, of course.

Two examples of Leftist racism below (much more here and here):

Beatrice Webb, a founder of the London School of Economics and the Fabian Society, and married to a Labour MP, mused in 1922 on whether when English children were "dying from lack of milk", one should extend "the charitable impulse" to Russian and Chinese children who, if saved this year, might anyway die next. Besides, she continued, there was "the larger question of whether those races are desirable inhabitants" and "obviously" one wouldn't "spend one's available income" on "a Central African negro".

Hugh Dalton, offered the Colonial Office during Attlee's 1945-51 Labour government, turned it down because "I had a horrid vision of pullulating, poverty stricken, diseased nigger communities, for whom one can do nothing in the short run and who, the more one tries to help them, are querulous and ungrateful."

Defensible and indefensible usages of the term "racism"

The book, The authoritarian personality, authored by T.W. Adorno et al. in 1950, has been massively popular among psychologists. It claims that a set of ideas that were popular in the "Progressive"-dominated America of the prewar era were "authoritarian". Leftist regimes always are authoritarian so that claim was not a big problem. What was quite amazing however is that Adorno et al. identified such ideas as "conservative". They were in fact simply popular ideas of the day but ones that had been most heavily promoted by the Left right up until the then-recent WWII. See here for details of prewar "Progressive" thinking.

R.I.P. Augusto Pinochet. Pinochet deposed a law-defying Marxist President at the express and desperate invitation of the Chilean parliament. He pioneered the free-market reforms which Reagan and Thatcher later unleashed to world-changing effect. That he used far-Leftist methods to suppress far-Leftist violence is reasonable if not ideal. The Leftist view that they should have a monopoly of violence and that others should follow the law is a total absurdity which shows only that their hate overcomes their reason

Franklin Delano Roosevelt was a war criminal. Both British and American codebreakers had cracked the Japanese naval code so FDR knew what was coming at Pearl Harbor. But for his own political reasons he warned no-one there. So responsibility for the civilian and military deaths at Pearl Harbor lies with FDR as well as with the Japanese. The huge firepower available at Pearl Harbor, both aboard ship and on land, could have largely neutered the attack. Can you imagine 8 battleships and various lesser craft firing all their AA batteries as the Japanese came in? The Japanese naval airforce would have been annihilated and the war would have been over before it began.

FDR prolonged the Depression. He certainly didn't cure it.

WWII did NOT end the Great Depression. It just concealed it. It in fact made living standards worse

Joe McCarthy was eventually proved right after the fall of the Soviet Union. To accuse anyone of McCarthyism is to accuse them of accuracy!

The KKK was intimately associated with the Democratic party. They ATTACKED Republicans!

People who mention differences in black vs. white IQ are these days almost universally howled down and subjected to the most extreme abuse. I am a psychometrician, however, so I feel obliged to defend the scientific truth of the matter:

The average African adult has about the same IQ as an average white 11-year-old and African Americans (who are partly white in ancestry) average out at a mental age of 14. The American Psychological Association is generally Left-leaning but it is the world's most prestigious body of academic psychologists. And even they have had to concede that sort of gap (one SD) in black vs. white average IQ. 11-year olds can do a lot of things but they also have their limits and there are times when such limits need to be allowed for.

America's uncivil war was caused by trade protectionism. The slavery issue was just camouflage, as Abraham Lincoln himself admitted. See also here

Did William Zantzinger kill poor Hattie Carroll?

Did Bismarck predict where WWI would start or was it just a "free" translation by Churchill?

Leftist psychologists have an amusingly simplistic conception of military organizations and military men. They seem to base it on occasions they have seen troops marching together on parade rather than any real knowledge of military men and the military life. They think that military men are "rigid" -- automatons who are unable to adjust to new challenges or think for themselves. What is incomprehensible to them is that being kadaver gehorsam (to use the extreme Prussian term for following orders) actually requires great flexibility -- enough flexibility to put your own ideas and wishes aside and do something very difficult. Ask any soldier if all commands are easy to obey.

A good article on Leftist hate

The real history of social Darwinism

Some personal memoirs

Memoir highlights

THE PSYCHOLOGIST

A revolution in how Aussies rent a home is coming, with the build-to-rent model booming

No comments:

Post a Comment

Blog Archive