Housing prices are high and are likely to go even higher in the future. The dream of home ownership is fading for many younger buyers. The median home price in Sydney is now over $1.6m.
This has caused many potential home buyers to consider long-term rental options.
What is Build to Rent?
Build-to-rent projects are large-scale residential developments. As opposed to more traditional models meant to sell individual units, build-to-rent projects are designed and built with the goal of enjoyment and live ability for the residents.
All the units are owned and managed by a single organisation or company. It is growing in popularity in Melbourne and Sydney where there are several completed projects.
One such project is build-to-rent at Sydney Olympic Park.
There are several pros and cons for both potential renters and investors in the build-to-rent sector.
Affordability
Build-to-rent projects may charge a higher rate than other developments, but the rates are far less than what is required to make a mortgage payment, insurance and land taxes. Older homes also come with increased maintenance costs, that also increase over time.
More Flexible Lease Arrangements
Lease arrangements are usually designed to attract long-term renters. This means longer terms of occupancy. It is possible to find leases for up to 3 years, which leads to an increased sense of security for renters. At least for the foreseeable future, they can predict what their monthly expense will be. Click here for preventative tips with roofing.
Build-to-rent projects are also more likely to allow renters to decorate or paint their spaces. If your circumstances change, and you need more or less space, it is more likely that management will accommodate you by allowing you to move to a different unit, in the same complex.
When it comes to leasing you have rights which are protected by law, and good projects know and recognize those rights, and operate within them.
Amenities
Since build-to-rent projects are designed to attract long-term renters, they include lots of amenities.
You can expect to find swimming pools, gymnasiums, yoga rooms, spin studios, kitchen and entertainment spaces, gardens, pet spaces, movie rooms, and other spaces to provide for recreation.
Being conveniently located in the complex makes them efficient and easy to use, as they are only steps away from your door.
These facilities are professionally managed and maintained, which alleviates the burden of having to buy equipment and maintain it.
Community
Well-run projects promote a sense of community. Neighbours get to know each other, because they generally live in the complex longer, and meet their neighbours in the shared facilities.
Management can run mixers, BBQs, movie nights and other types of events to allow neighbours to get to know one another. This is a big benefit as the traditional neighbourhood concept where people look out for each other, has been deteriorating over recent decades. Build-to-rent projects may not be for everyone, but they provide a new and exciting option for those looking for the security of a stable home.
