Big incentives for investors

With rent increases outstripping wages growth and inflation, it is becoming increasingly difficult for low to middle income earners to enter the private rental market.

To address this problem, the National Rental Affordability Scheme (NRAS) was launched in 2008 to provide incentives to approved business and community organisations, including Haven, to build and rent newly constructed dwellings to eligible households.

The Commonwealth and State Governments offer a combined tax free incentive at $9,524 a year over 10 years to investors willing to construct and rent properties at 20% below the prevailing market rent.

Haven is an approved NRAS participant and has been allocated 100 incentives across regional Victoria to develop new properties. We have also been contracted to provide tenancy and property management services for other NRAS participants in metropolitan areas.

Under the scheme, NRAS dwellings must be rented to eligible tenants who meet the NRAS income thresholds. These income limits are intended to include key and essential service workers such as childcare workers, nurses, police officers and fire-fighters.

The income limit for a single adult is $44,128 per annum, increasing to $104,913 per annum for a couple with three children. NRAS also allows for tenant salary increases of 25 per cent above the income limits. For example, with the income increase allowance, a couple, with three children, could earn up to $131,141 for two years before they become ineligible for the discounted rent.

If you’d like to know more about how the NRAS works, go to http://www.environment.gov.au/housing/nras/faq/index.html

 

To contact Haven about its NRAS incentives email nras@haven.org.au