Daily Buzz: Thursday, 11 April
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PropertyBuzz, your daily dose of property news.
Draft legislation for build to rent incentives makes its debut, Millenials have been named the largest cohort of Australian investors, and have dodgy sunset clauses been solved with ACT laws?
Welcome to Property Buzz! I’m Grace Ormsby.
Today is Thursday, the 11th of April, and draft legislation has been released to introduce tax incentives for build-to-rent projects,
– These incentives would reduce the withholding tax rate on eligible fund payments from 30 to 15 per cent.
– They would only apply to new projects with 50 or more apartments, owned and rented by a single owner for 15 years, with at least 10 per cent of dwellings as affordable rentals.
– The move has not been welcomed unanimously, with the Real Estate Institute of Australia cautioning against relying on build-to-rent to deliver housing relief.
Over on the investment front, new research from CommBank shows that Millennials are the largest group of active Australian investors, making up nearly half of all new investment property purchases in 2023.
– Gen X was the second largest group, comprising nearly 40 per cent of all buyers.
– Almost one-third of all Millennial property investors purchased their investment property alone, without splitting costs with a partner or family member.
And down in Canberra, the ACT government is conducting a public review of laws designed to protect off-the-plan home buyers from unfair contract cancellations by developers.
– The laws, passed over two years ago, were made in response to growing complaints about developers exploiting sunset clauses in contracts to re-list properties at higher prices.
– The laws prevent sellers from rescinding a contract under a sunset date or delay event recission clause without buyer consent or a Supreme Court order.
– The ACT government is inviting those involved in buying or selling off-the-plan properties to share their experiences through online consultations before the end of May.
That’s all for today.
See you again tomorrow, 12 April, for your daily dose of Property Buzz.
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