Affordable Housing Scheme Provides Options for Low Income Earners
The National Rental Affordability Scheme is now well underway and proving it is a win-win situation for both landlords and tenants.
The scheme, which was set up by the Rudd Government in 2008, was devised to offer tax-free financial incentives for investors to build and rent dwellings at rates below market value for 10 years.
This in turn creates affordable housing options for low or moderate income households.
Several companies across the country are involved in the $1billion scheme.
NRAS is managed by the Department of Sustainability, Environment, Water, Population and Communities and aims to add 50,000 affordable rental dwellings to the market.
Financial institutions, investors, private developers, not-for-profit organisations and local governments are eligible to build, own, finance or manage an NRAS dwelling.
One participating company, My NRAS Property has just sold its 10th property.
“We have been going since the start of the year and are slowly building momentum,” the company’s head of investment, James Thorpe, said.
My NRAS Property aims to educate clients about NRAS, usually through seminars, and help them select the property that suits their requirements.
It is akin to that of a normal real estate agent in that it makes the sale and takes a small percentage of the sale price as income.
The properties involved in the scheme range from apartments in major cities to house and land packages in rural areas of Australia.
“They are in a variety of places, such as North Melbourne, Box Hill, Geelong, Preston and Ballarat,” Mr Thorpe said.
Investors can earn at least $109,228 in tax-free income from government incentives for every property bought and held for 10 years.