Efficiency: Rules are designed to operate effectively and efficiently in the interests of both residents and investors, within existing legislation and ASIC regulations, and consistently applied on a state and, ideally, national basis.
UTS’ build-to-rent-to-own model enables a renter to acquire an ownership stake in their build-to-rent development with a contribution of as little as $ 10 a week. This model differs from‘ conventional’ home ownership: residents would not own a property title but, rather, shares in the build-to-rent corporate entity. In this regard, the model aligns with international examples of cooperative housing. The build-to-rent-to-own model is also different from‘ rent-to-buy’, a pathway to conventional home ownership that gives renters the option to buy their unit at a predetermined price at the end of their lease.
HOW BUILD-TO-RENT-TO-OWN WORKS A build-to-rent entity has issued 1,000,000 shares.
The total value of the build-to-rent established through the owner’ s valuation governance framework at 30 / 06 / 2025 is $ 30M.
The valuation of an individual share in the development is $ 30.
Rosy is a resident of the development and has acquired 1,000 shares over a period of 10 years. The value of Rosy’ s shares in the development is $ 30,000.
In December 2025, the owner re-values the entity based on its valuation governance framework. The valuation of shares in the entity increases to $ 32 per share as at 31 / 12 / 2025.
Rosy’ s 10,000 shares in the development now have a value of $ 32,000.
PROPOSED BUILD-TO-RENT- TO-OWN MODEL RULES based on the notional value of their individual dwelling.
Build-to-rent-to-own offers an alternative to the‘ build to sell’ model. It challenges the status quo where only those with the capacity to own a home or secure finance can access the benefits of home ownership. It also gives the growing number of Australians who might otherwise be locked out of the housing market the opportunity to access the benefits that home ownership provides – greater agency, stability, financial security, and the ability to live in the same community over generations if they wish, without being forced to move. These are the foundations of wellbeing and productivity.
For residents of a build-to-rent development, the model would operate in a way that provides certainty and security, allowing residents to build long-term connections with their community and enabling intergenerational living.
For institutional investors such as superannuation and pension funds that may own a build-to-rent development, offering a build-to-rent-to-own scheme should enable investments that deliver risk-adjusted financial returns. The benefit for superannuation funds is that offering a build-to-rent-to-own scheme can also support a super fund’ s members to build financial security in a way that is entirely consistent with best interest fiduciary duties.
UTS’ research proposed a series of rules, including:
• All build-to-rent residents in participating developments, including those in affordable dwellings, would have the option annually to elect to participate in a build-to-rent-to-own scheme offered by the corporate entity that owns the development.
• A resident of a build-to-rent development could elect to acquire or sell shares annually. Shares are directly bought from and sold back to the build-to-rent entity, not on an open market, to reduce speculative activity.
• Residents could elect to acquire or sell shares once a year within a designated period.
• Residents could acquire a variable amount of shares to suit their financial circumstances. They could make small regular payments over a long period, or a lump sum, for example if they are the beneficiary of an estate.
• There would be a defined minimum and maximum amount of shares. The minimum could be around $ 500 a year, representing a payment of $ 10 per week. The maximum could be
• Shares would be valued quarterly, to align with the Australian Prudential Regulation Authority( APRA)’ s guidelines and the valuation governance process of the build-torent entity.
• Participation in a build-to-rent-toown scheme would not affect rental arrangements. Build-to-rent-to-own scheme participants would be entitled to a dividend based on the profits of the corporate entity and the number of shares they own.
• Scheme participants would have both residency rights as tenants and ownership rights as shareholders. They would be minority owners of the entity, protected by Australian corporate law.
• Scheme rules would outline mechanisms for grievance resolution. Mechanisms, including Community Advisory Boards, may provide an efficient mechanism to resolve disputes.
• To take advantage of the incentives in the build-to-rent legislation, a build-to-rent development must remain as build-to-rent for at least 15 consecutive years, and many are held for longer. Scheme rules would align rights of shareholders after a 15-year period.
VOL 19 NO 1 2026 30 www. edaustralia. com. au