SO CALLED INCENTIVES FOR INVESTORS

 REIWA CEO Cath Hart has praised measures announced in the WA State Budget that will make build-to-rent developments more affordable for investors. 

The changes in the legislation will provide a 50 per cent land tax exemption on eligible build-to-rent projects over a 20-year period, saving landlords thousands of dollars and helping ease the strain on our undersupplied rental market. (Like to know where in the Western Suburbs that's going to be)

“This incentive by the McGowan Government will reduce costs and encourage much-needed development in this space,” Ms Hart said. (Won't be in the Western Suburbs) 

While the new legislation won’t solve the rental crisis overnight, Ms Hart believes that it’s a step in the right direction, this will help us meet future demand as our population continues to grow. (yes it's a step in the right direction however its not running fast enough, without you Cath I shudder think just how long it would have been - what will it be 2 years and that's of course if you have the availablity of builders).

 “These measures should encourage new builds and increase housing supply over time,” said Ms Hart. (So what do you think the builders are going to do then?  Prices will increase as they know that these builds are for rentals only)? 

The measures are in addition to the tax concessions that were announced in the recent Federal Budget, in which the Government increased the rate for the annual capital works tax deduction (depreciation) to 4 per cent for build-to-rent developments. (A start but not that attractive)

Ms Hart said it’s important that these changes are accompanied by a stable regulatory environment that both attracts and retains property investors. Recent uncertainty over potential rental reforms has created a nervous atmosphere among current and prospective investors, something we need to address if we are to ensure the supply of rental properties in WA meets demand. (If it wasnt for you Cath pushing this barrow the Government would have had to build thousands of rentals, but I am afraid they have left it too late)

Build-to-rent developments are an attractive proposition for landlords. Complete with resort-style amenities and cutting-edge technology, they are always very popular among tenants. When compared to traditional units and apartments, they offer more stable long-term returns. (True however the rates, water rates, strata fees, insurances are so high that the rents have to be very good to make a good return) 

With fewer than 700 units available for rent this week according to REIWA, these Budget measures couldn’t have come at a better time. (Little too late) 

I just find that this Government sitting on an absolute mountain of money has been so low and should have been building 3-5 years ago to be ahead of all of this and now its like the horse has bolted and they are expecting the investors to pick up the tab.  With you changing the legislation also around tenants, magistrates who dont back up the Property Managers, Property Managers leaving the industry by the droves as they are sick and tired of dealing with idiots..... there's just more coming at you than not enough rentals Mr Gowan. 

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