CHANGES TO NSW LEGISLATION … WITH the Planning Minister set up in a Planning Ministers Corporation as NSW Treasurer pushes “Build to Rent” for Sydney Millennials
IT appears that with Premier Gladys Berejiklian and her minions, having sold off many of our State assets, they are looking for new things to sell.
If this Government report is correct, she thinks she can take our privately owned homes and sell them off to their developer mates ……
Further, the Planning Sinister has set himself up in a Planning Ministers Corporation.
Perhaps took lessons from Wa$teCONNex when they set up SMC?
THERE is a NSW Government Report flying under the radar … that ties in with NSW
Treasurer Dominic Perrottet pushes ‘build to rent’ for Sydney millennials … see transcript below!
IT is the NSW LNP Government (2011 – to date) in concert with the Turnbull Government (following the Howard Government in 2004) during which period a whole Cohort of Australians have been locked out of home ownership.
THIS has also coincided with high immigration … Howard opened the floodgates allowing as many as 300,000 migrants per annum and introduced the 457 Visa …
AND with the FIRB ruling change allowing developers to sell 100 per cent of “new homes” to foreign buyers. The May 2017 Budget Reg for the 50 per cent sell-off only applies to apartment projects of 50 dwellings plus …
QUESTION what sort of a government that allows Australian domestic housing to be sold overseas, and grants a Residency Visa to those purchasers as it proposes to
shepherd Australians into rental accommodation?
THE OFFICE OF STRATEGIC LANDS
This is the direct link – Anthony Roberts has set himself up a “Planning Ministers Corporation.”
Download Strategic Business Plan for the Planning Minister’s Corporation 2017 (PDF, 5.6MB)
REFER to Pages 27, 36 and 38:
NSW Treasurer Dominic Perrottet pushes ‘build to rent’ for Sydney millennials
by John Kehoe
Feb 4 2018
NSW Treasurer Dominic Perrottet is pushing to overhaul state and local planning rules to kick start the “build to rent” apartment market to ease Sydney’s housing affordability problem, in a move that could create a new investment asset class for superannuation funds.
On a trade mission to the United States last week Mr Perrottet scoped out the burgeoning build to rent sector that has delivered 18 million US residences underwritten by institutional investors.
Greystar, America’s largest operator and with 435,000 units globally, has set up in Australia and aims to begin the country’s first build-to-rent project later this year in Sydney or Melbourne.
In Washington DC, Mr Perrottet toured the firm’s 307-unit “Anthology” apartment block, replete with communal bar, BBQ area, gym, swimming pool, family room and dry cleaning service.
“This is the type of environment that is entirely unique and Millennials want to live in developments like this,” the 35-year old Treasurer told The Australian Financial Review in Washington.
The housing affordability debate, he said, was too narrowly focused on home ownership and that 20-somethings were prepared to rent in attractive areas before buying later in life than their parents did.
The build to rent system works by developers building residential complexes specifically for renters, with projects funded by long term institutional capital.
The model is mature internationally and Greystar has $US23 billion of rental assets across the US, United Kingdom, China, Germany, Spain, Mexico and Chile.
The typical tenant age in the US is 22-35, plus some baby boomers and retirees downsizing from family homes.
In a blow, Mr Perrottet’s push for federal government tax breaks for developers in the build to rent sector was swiftly slapped down by Treasurer Scott Morrison.
“He wants to give a tax cut to foreign investors in high-end, high-rent housing,” Mr Morrison told the Financial Review in the US on Friday. “We haven’t been in favour of foreign tax breaks for housing.”
Greystar chief executive Bob Faith wants more flexible rules on the size of units and bedrooms, the number of units on a floor and the scale of complexes.
“It’s about adding to the supply and building affordable housing for 20 years from now,” Mr Faith said.
Australia’s Lendlease, which is building a 160 unit building in New York that the NSW Treasurer toured, is pressing for tax issues to be fixed at home.
“Based on our international experience in the US and UK, Lendlease is very supportive of build to rent and would like to see it overcome various hurdles to become established in Australia,” said Lendlease executive Kylie Rampa.
“Australia’s tax treatment of build-to-rent and build-to-sell is unequal. The lack of a level playing field, particularly at a time when BTR is in its infancy is probably the main barrier to the sector’s establishment and development.”
NSW has set up an industry working group and Mr Perrottet has lobbied Mr Morrison to extend existing managed investment trust tax breaks for social and affordable housing to the build-to-rent industry.
Mr Perrottet flagged that NSW would seek to reform state and local planning and zoning rules to enable a more flexible system to get projects off the ground around Sydney.
“Governments get it wrong when we become so prescriptive on the planning side,” he said.
“Then great apartment developments like this one don’t get over the line for some technical reason because some government computer says no.”
The projects are financed by long-term institutional capital and Australian superannuation funds are seen as a natural investor base due to their desire for steady long-term income streams. One Australian fund already invests in Greystar’s US projects.
Rental yields, taking into account all costs, are typically about 4.5-5 per cent in the US.
In Australia yields are lower at about 2.5 per cent, due to landlords betting on strong price appreciation and negative gearing.
Wes Fuller, the executive helping Greystar’s expansion into Australia, said the rules needed to recognise that the economics of a for-rent project were different to developers building properties to sell to owner-occupiers or investors.
“Theirs is a transactional investment, whereas ours is a long-term hold investment for income.”
In return the company typically offers discounted rents to a set proportion of units, roughly about 10-15 per cent, so the community in the building is diverse from school teachers to bankers.
Prospective renters can sign a lease midway through construction, as early as six months from scheduled completion. They do not pay a deposit or contribute directly to the building cost, other than a usual rental bond and monthly rental payments.
Leases typically run for 12 months.
Mr Faith said the recent state stamp duty surcharge’s on foreign buyers and other tax issues had “inadvertently” deterred offshore investors in long-term build-to-rent projects.
He hopes to announce a project in Sydney or Melbourne this year, begin construction in 2019 and have renters move in around 2020.