Economists are convinced that home affordability is one of the biggest problems in the housing sector. Home buyers are quick to point out that the current concessions for home buyers are not enough, as house prices are constantly on the rise. There is another scheme, however that has not been given enough attention but can benefit both investors and developers alike.
The National Rental Affordability Scheme (NRAS) is a federal government concession that rose from the needs of housing affordability. This is a program that provides tax incentives for houses that are below market rates. For investors, they can be provided with tax free incentives for properties that are in the scheme for a minimum of 10 years. This scheme is also favorable, as investors from Self Managed Super Funds can invest.
For more information about the NRAS initiative, head to the Property Observer website.