Built to Rent

Jan 31, 2019 modified: Jan 09, 2025

Built to Rent

Build to Rent (BTR) is a term used to describe property that is specifically developed for long-term rentals.

This is a new model compared to the typical real-estate development involving sales to individual owners or individual investors.

Build to Rent is common in the US and also growing in the UK. In the US it is common for whole subdivisions to be developed that are BTR.

Australian governments are encouraging BTR - Victoria has a 50% land tax discount for BTR properties.

Median is essentially the middle value in a string of values.
Sydney reached the $1m median mark in 2015. By June 2024 it is $1.66m.

Median House Price Movements

City	Jun 2024	Mar 2024	Jun 2023	QoQ	YoY	Price Peak	Price from Peak
Sydney	1662448	1641333	1542688	1.3%	7.8%	Jun-24	0.0%
Melbourne	1068805	1050950	1542688	1.7%	3.6%	Dec-21	-2.3%
Brisbane	976464	938856	835654	4.0%	16.9%	Jun-24	0.0%
Adelaide	929972	906352	801691	2.6%	16.0%	Jun-24	0.0%
Canberra	1041432	1032753	1033066	0.8%	0.8%	Jun-22	-11.2%
Perth	852240	799804	688250	6.6%	23.8%	Jun-24	0.0%
Hobart	688053	693537	701993	-1.1%	-2.3%	Mar-22	-10.0%
Darwin	585047	584472	648274	0.1%	-9.8%	Dec-13	-13.8
National	1154394	1127516	1052530	2.4%	9.7%	Jun-24	0.0%

Source: Domain

An article in the Australian Financial Review indicated the change in Median House prices in Australian capital cities 2017-2018.

City	Dec 2018	Sep 2018	Dec 2017	QoQ	YoY
Sydney	1062619	1097373	1180024	-3.2	-9.9
Darwin	514876	516837	564027	-0.4	-8.7
Melbourne	833321	851441	909463	-2.1	-8.4
Perth	546281	546281	565005	0.0	-3.3
Brisbane	566058	567081	566602	-0.2	-0.1
Canberra	738933	738262	739290	+0.1	0.0
Adelaide	537971	537225	528888	+0.1	+1.7
Hobart	479685	467171	440970	+2.7	+8.8
National	766438	780356	819406	-1.8	-6.5

What drives these moves to Build to Rent?

Essentially a lack of available space in inner-city areas of Sydney, Melbourne and Brisbane drives a move to Build to rent. Build to rent could be another major change in the real-estate market.

Certain segments of the population are renting for longer. The issue of housing affordability is driving people to be lifelong renters.

Changing attitudes to bricks and motor ownership is another driver.

Impact of Inflation on Build to Rent

Some commentators suggest build to rent mitigates inflationary pressure because landlords can easily adjust rental prices up.

Inflation causes many issues for first home buyers. One key issue is whilst they are saving for a deposit their rents are also going up.

Wear and Tear - Painting a Rental Property

"Fair wear" is deterioration caused by the reasonable use of the premises. "Fair tear" is deterioration caused by the ordinary operation of the forces of nature. Importantly, intentional or negligent damage are not fair wear and tear.

Blair Friend an experienced Painter Gold Coast has some advice on tenants rights and repainting your rental property.

The choice of paint and colours are important. Choose a painter with good wall repair skills. The ability to match colours may save a total repaint.