…. But [these] companies face challenges too. The main one is the built communities are a land-hungry model that requires access to lower-cost real estate. Another key risk is the state of the broader residential market. A meltdown would disrupt the transition of downsizers into the prefab communities.
… landlords do not just rely on home sales. At Ingenia for example that revenue accounts for just 30 per cent of its total income. The rest is from the rent roll, an annuity style income that flows on regardless of vicissitudes in the property market. Much of that income total, in turn, is underpinned by government-funded pensions. “Our residents have very low credit risk,” Mr Owen said.
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