A new build-to-rent development has been proposed along the coast as the Federal Government reveals new draft guidelines including tax incentives.
DTG Developments has released a proposal for a build-to-rent development on the Jindalee coast built by Dale Alcock Projects which will include an apartment complex and a GP clinic.
The proposed complex will include 27 dwellings comprising 16 two-storey townhouses and a three-storey apartment building containing 11 apartments.
The vacant 6280sqm block on Maritime Drive is proposed to include 56 car parking bays and is close to the Jindalee Beach Shack restaurant.
Planning documents say it is “small but necessary” addition to the housing stock in the City of Wanneroo, and “will address the current housing shortage”.
“Instead of strata titling and selling the dwellings, the owners intend to retain ownership of the entire site and recoup the costs of development over the long term through lease arrangements.
“A key benefit of build-to-rent developments is that they provide stable, long-term rental accommodation for people who cannot afford to or would prefer not to purchase a home.
Median rent in the area is $710 per week and the median sales price is $720,000.
“This model is recognised as being a critical and undersupplied part of the solution to the well-publicised housing crisis.”
DTG Developments is mentioned in the documents as a “family-owned and Jindalee-based development company that has already completed a number of developments in the locality”.
“The family has a strong attachment to the area and pride themselves on delivering high-quality development outcomes that build on Jindalee’s developing contemporary coastal character, while also improving the diversity of housing in the area.”
The development, if passed, would likely miss out on new tax incentives drafted by the Federal Government because it falls short of criteria for more than 50 dwellings.
The Australian Government on Monday released a draft of legislation that would give effect to a measure announced in last year’s Budget, intended to stimulate the supply of new BTR housing.
If passed, it will affected projects starting after May 9 last year, taking effect from July 1, 2024.
It proposes to reduce the final withholding tax rate on eligible fund payments from managed investment trust investments from 30 per cent to 15 per cent.
The reduced MIT withholding tax rate is forecast at a cost of $30 million over the forward estimates.
It also proposes to increase the rate for the capital works tax deduction — or depreciation — to 4 per cent per year, up from 2.5 per cent.
Eligibility also requires all dwellings in the development and common areas included in the BTR complex are owned together by a single entity, at any one time, for at least 15 years.
Criteria includes a provision that the dwellings in the BTR development are offered for lease terms of at least three years though tenants can request a shorter lease.
At least 10 per cent of the dwellings must be made available as affordable tenancies.
DTG Developments is mentioned in the documents as a “family-owned and Jindalee-based development company that has already completed a number of developments in the locality”.
“The family has a strong attachment to the area and prides themselves on delivering high-quality development outcomes that build on Jindalee’s developing contemporary coastal character, while also improving the diversity of housing in the area.”
