While the supply-demand equation is tilting in the favour of Sentinel and its peers, so is the investment case, generating rental housing returns that are competitive with those from other forms of property.Rental growth is in the double-digits range and Sentinel’s internal rates of return are in the low to mid-teens, according to Mr Streicker. It achieved a yield on cost for the Perth project of 5.25 per cent. A similar outcome is expected from the West Melbourne project.
As tenants embrace the BTR model, lenders have also shifted in their understanding while Sentinel has been in Australia. The US player struck one of the first finance agreements with a local bank into the sector 18 months ago. With tailwinds blowing for the sector, one impediment to growth is a labour shortage, Mr Streicker said.
My prediction. Australia will be in recession in the next six months. The rental crisis is what will tip the Australian economy into recession if timely actions are not taken.
US sub Sub over the top priming ready to jump on the wagon US less American company just what our over-primed property disaster needs. Wall Street lite to scam taxpayers & Gullible home buyers We cannot afford more aid to US business. Ontop of defence contracts Lemon squeezed