WHO IS DEVELOPING BUILD TO RENT PROJECTS IN AUSTRALIA?
Both smaller private investors familiar with residential development and larger listed entities are developing build-to-rents in Australia, with the “brand” of developments set to become a selling point, Mr Fitzsimon said.
For tenants, living in a build-to-rent is different to a standard apartment block, where every unit can be owned by someone different, he said.
“Build-to-rent developments not only offer longer leases, up to three years – which gives tenants the security of knowing the owners’ daughter won’t want to move in one day and leave you without a place to live, for example – but also amazing facilities in their buildings, like gyms and yoga rooms, rooftop spaces, even dog-walking services.”
In many build-to-rents, tenants are allowed to paint walls and hang pictures and keep pets. Annual rent increases can often be locked in when signing.
A "targeted" or "projected" metric represents a developer's best estimate of that data point.
A targeted metric is typically calculated by means of financial modeling and based on a set of assumptions.
WHAT ARE SOME COMMONLY FOUND EXAMPLES OF TARGETED METRICS?
Targeted IRR (internal rate of return)
Targeted Equity Multiple
Targeted Cash Yield
Targeted Investment Period
Targeted Distribution Commencement
ARE THERE ANY GUARANTEES THAT THE PROJECTED TARGETS WILL BE HIT?
No, there are no guarantees of any sort with respect to performance in this type of real estate investing. Investment performance may exceed or miss any and all targeted metrics. Please note that investment opportunities are speculative and involve substantial risk.
You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital.
To see more investment terms go to our Glossary HERE.
