Institutionalising resi investment properties

Discussion in 'Property Market Economics' started by mcarthur, 20th Jul, 2016.

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  1. mcarthur

    mcarthur Well-Known Member

    19th Jun, 2015
    An interesting take on things:
    Rentals are predominantly owned by “mum and dad” investors who usually have a portfolio of just one or two investment properties.

    To make it viable for Australia to comfortably house a population where renting is the norm, this culture needs to be changed, Dr Randolph said.

    Instead of encouraging investors to buy one or two homes, the government should be “encouraging institutional investors”, such as funds managers to get into the market. These larger investors would keep large numbers of rental properties in their portfolio for 20 to 30 years and hire professionals to handle timely repairs and maintenance over the long-term, he said.

    “Government guarantees and some tweaking of the tax system would [make it more attractive] to these investors.