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Build2Rent
The terminology Build-to-Rent is relatively new to the Australian property industry. Quite simply it is building a property for the sole purpose of renting. A significant property category overseas, in our market this emerging property sector is dominated by large players, building apartment complexes across our major capital cities.
As Aussies, we have grown up chasing the example set by our parents, where the dream of having a block in the suburbs with a backyard is what the majority of our property investment aspirations consist of. For a “lucky few” we all know of some people who had “bought an investment property”, usually a flat, or an apartment, perhaps a commercial building. For most, the opportunity to “invest” was for others…...
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We are changing as a community, and with that change comes the need to change the way we invest, and what we invest in.
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International and National “big players” in the property market are driving the development of build-to-rent apartments, motivated by the simplicity of the initial development and the ongoing financial savings of management costs when all tenants are in one location. Apartments have a place, and without question, they are growing in popularity in Australia as we gain a greater understanding of urbanisation, however, they are still an apartment, they do not provide the same emotive connection a home provides.
In Australia we love a home, we love the permanence of our own space, we like to return home to our place in the suburbs. We grew up within the local community, and be it cricket in the local cul-de-sac, or having a beer over the fence with your neighbor, this is what you can do in a house. Apartments have their place, however, they are not ever going to replace the fundamental reasons why we love a home. The affordability of a home is changing, however not the desirability, so the ability to purchase may be difficult, yet the demand to rent will continue.
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From an investment perspective, financially a home enjoys a higher rental return, a home enjoys a longer average rental period, a home appreciates at a greater value than when compared to an apartment, these all contribute to a stronger more reliable asset.
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Our goal is to focus on working with those who believe in investing in building a home dedicated to rental, that is located in suburbs where there is demand, with a design that compliments the lifestyle of a tenant with affordability and returns on equity as the major investment consideration criteria
WHAT is build2rent.org?
Used to describe the private rented residential property, as the name suggests, Build to Rent involves the building of homes specifically for the rental market. These developments are traditionally owned by large companies and let directly or through
a management agent. The establishment of build2rent.org has been to assist identify those who are considering entering the property market not as a home buyer – as an investment buyer
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The ability to leverage savings into an investment property where you are using borrowed funds to build an asset base. The house provides a rental return to meet the borrowing costs of the asset, it can produce you an income (tax considerations are applicable), and enjoys further benefits in growth in equity, strengthening the value of your investment and ultimately your financial position
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The key consideration for building a home to rent is identified as follows:
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Appeal – we simply love a home, it provides space, it makes you a part of the community, and provides a genuine sense of belonging
Appreciating Value – a home statistically appreciates stronger than a home, bricks, and mortar green title investment is something that is yours, it is not shared in a strata structure where others
Stronger Return – comparatively in the same suburb, a house rents for more than an apartment, it is the reward for building something more substantial, that has its own space
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Longer Tenure – on average a tenant in a home is there for longer than an apartment, providing you more regular income
and ultimately return on your investment
Identifying opportunities where there is rental demand, amenities that compliment the home such as access to transport & schooling are key investment considerations. Sourcing land and a home design that can complement the community
is how you can maximise the return available and ultimately the return on the equity you experience in a quality build rent project - my role is to assist make that happen!
Dedicated Designs
With dedicated designs for 6m, 7.5m, 10m, 12.5m & 15m frontage homes, we are able to build an investment home solution that is truly turnkey, From initial design and construction through to the installation of your letterbox and handover to a property management company.
The Small Cottage Block (6m2)
Designed for a 6m Cottage Block with a rear loading double garage, this home is not large, it is not intended to be, however it is a functional 3 bedroom, 2 bathroom, home with all amenities. It is great value, and perfect for positioning close to public transport links.
The Larger Cottage Block (7.5m)
Designed for a 7.5m Cottage Block with a rear loading double garage, Cleverly provides stylish living space in an affordable and very functional floorplan. It is a 3 bedroom, 2 bathroom, with a Laundry, WIR and functional living and dining area.
The Tenner (10m)
This three bedroom home has everything attractive for renting, purposely designed for the 10m wide block. The open plan living area is easily connected to the alfresco making it a great place to entertain with friends and family. There is also a separate study, perfect for working from home.
WHY build2rent.org?
The rental opportunity in Perth & Adelaide is at an unprecedented level. In October 2021 Perth's residential vacancy rate plummeted to 0.96%, the lowest level in 13 years.
This was only the third time in 40 years the vacancy rate has dropped below 1% in Perth & Western Australia remaining one of the most desirable destinations globally, with their idyllic beachside location, relaxed lifestyle, and affordable housing. Perth has long been a popular destination to invest in property and why it is a regular on the Economist’s Intelligence Unit’s highly acclaimed list of most liveable cities in the world.
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With the current favorable conditions brought on by record-low interest rates, low rental vacancy rates, and rising rental yields, Perth property is in high demand. There remains major concern there aren't enough homes to buy or rent, thus creating demand on building new homes, with building a home to rent is a viable investment consideration
The Build to Rent model allows property investors to achieve long-term investment returns while providing renters with more options and better quality in the locations in which they invest. We are seeing trends of markets such as the UK now filtering into our property landscape.
In the past ten years, the number of UK residents renting property has doubled, and roughly 20% of UK households (as high as 30% in London) are in private rented accommodation. It is estimated that a third of these tenants will continue to rent, due to the rising cost of homeownership. Research suggests that one in three millennials (adults born between the early 1980s and 2000s) will stay in private renting beyond retirement.
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As affordability grows as an issue, the demand for rental accommodation will further increase. A home to rent is providing a solution to a growing rental crisis that a shrewd investor can capitalize on. With all-time low-interest rates and the most affordable House & Land package opportunities in the country, the Perth market presents as a genuine investment opportunity now
The Family (12.5m)
Perfect for maximising your rental return, a theatre, an activity room that’s perfect for a study, running a home business or a games room. A scullery and the master has "His and Her" Walk-In-Robes. Such inclusions all contribute to what we call rentability, Greatly assisting the appeal of this as a rental property.
The Biggie (15m)
Perfect for a growing family. Includes a master suite at the front of the home complete with walk-in robe and ensuite, and a secluded kids’ zone that offers three generous bedrooms. There’s also a separate home theatre for that movie session with family and friends. All features help maximises your rental return.