The Berejiklian government will cut land tax for the next 20 years for new build-to-rent housing projects in an Australian-first designed to give renters longer-term leases.
NSW will give a 50 per cent discount on land tax to developers who invest in build-to-rent schemes, which are designed to provide better quality rental properties and long tenancy agreements.
Treasurer Dominic Perrottet said the scheme would provide more housing options, greater certainty for renters, boost construction and support jobs during the COVID‑19 recovery.
“Build-to-rent is popular overseas but still in its infancy in Australia, and we want to remove the barrier and allow this segment of the market to grow,” Mr Perrottet said.
“Renters benefit through greater choice because the focus is placed on them, rather than just geared towards property owners.”
Minimum 50 apartments to qualify. Even Real Estate’s Cameron Kusher can see the issue:
It’s potentially not a great time to own an investment property in NSW. Demand reducing, rents falling an now the Government wants to offer more incentives for BTR. Wonder if we see NSW property investors start bailing out? https://t.co/ie7zHS7hf6
— Cameron Kusher (@cmkusher) July 28, 2020
Yes, they will. Then again, unless or until the border opens, why would developers go ahead as rents crash? More to the point, how will they get the finance?
Perrottet would be better off getting over trying to shoehorn dead as a Dodo private investment and cough up more debt for infrastructure instead.
It pays for itself over the long run and deficits no longer matter anyway.