December 15th 2024.
A exciting new era of housing is upon us in Melbourne's bustling inner-city. With the promise of extended lease agreements and greater stability for renters, the government's Build to Rent housing model is revolutionizing the rental market. Rather than catering solely to buyers, this model encourages the development of large-scale properties specifically designed for medium to long-term renters.
Recently, Minister for Housing Clare O'Neill had the opportunity to visit one of the first projects to open under this new scheme. Located in the trendy suburb of Southbank, this facility boasts impressive amenities such as a sauna, gym, and "business centre." One of the major perks for renters is the on-site maintenance offered by the building, ensuring prompt repairs when needed.
"Our government is committed to providing Australians with more rental options," Minister O'Neill shared with 9News. During the last days of parliament's sitting week, legislation was passed to provide incentives for providers who participate in the Build to Rent program. As part of this initiative, operators must offer five-year leases and reserve 10 percent of the property as affordable rentals for lower-income Australians.
While the ultimate goal is still home ownership, Minister O'Neill recognizes the importance of making the rental experience a positive one. "If you haven't rented in a while, you probably don't realize how difficult it can be out there," she stated. This sentiment is echoed by Shadow Treasurer Angus Taylor, who believes the government should do more to improve the standard of living for all Australians.
The Build to Rent model has been successful in countries like the US and UK, but it is still relatively new in Australia. As a result, prospective tenants often face long waitlists and high rent prices for standard rentals. This is partly due to the recent increase in interest rates passed on from owners to renters, coupled with a surge in demand due to the lifting of COVID lockdowns and increased immigration.
With the government set to deliver its mid-year budget update this week, the focus will once again turn to the standard of living in Australia. As we continue to navigate through these unprecedented times, it is reassuring to see initiatives like Build to Rent being implemented to provide more options and support for renters.
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