Melbourne apartment developer and AFR rich lister, Tim Gurner, has attacked the emerging ‘build-to-rent’ sector, describing it is “economically stupid” and will “wipe out mum-and-dad investors”:
“I am incredibly against build-to-rent, purely because I think economically, it’s a stupid model in the sense that a 4.5 per cent return on costs [the magic number according to Mirvac] should not get a development off the ground.
“But that’s actually not what I am most worried about. What I am much more concerned about is by bringing in the Blackstones and Greystars and the big boys from overseas they are going to wipe out the mum-and-dad investors”…
