IT’S not a hidden tax incentive, but it seems that only a few investors seem to take advantage of it. Xcel Properties managing director and developer of Mackay’s Plantation Palms Kim Clarke said despite the National Rental Affordability Scheme gaining traction in Mackay, many residents were confused about the private investment incentive offered.
He said the incentive can be used by everyone, including the “mum and dad” type investors. “Incentive from NRAS is received in the form of an annual tax refund offset from the Australian Government,” he said. “Affordable rental properties in Mackay have been scarce for the past 10 years, which guarantees demand for these properties.” Plantation Palms is now hosting an information event to let potential investors know how they can take advantage of the incentive.
NRAS is a long –term commitment by the Australian Government to stimulate private investment into the low- priced residential property market. This is set at $7762.50 per dwelling in line with the property being rented for 10 years at a rate at least 20% below market value. Queensland investors receive an additional cash payment of $2587 per dwelling directly from the State Government, taking the incentive to more than $10,000.
Despite the obvious advantages of the scheme, Mr Clarke said there were still areas of confusion and misconceptions around what the incentive offers. “We’ve recently received an influx of potential investors inquiring about further education, especially around topics such as who will be living in their home, and who will be controlling their investment,” he said.
“As a major developer of affordable housing in the Northern Beaches area we have a responsibility to provide these potential investors with sound advice that helps support their decision.” He said one of the biggest misconceptions about the NRAS was that the properties were used for social housing.
“These affordable rental dwellings are private property and the investor/ owner has complete control over who occupies their property,” he said. “A couple with three children can earn $109,264 p.a. (rising to $136,580) and still qualify to rent.” Plantation Palms has joined forces with Mackay Regional Housing Company to host an NRAS information event on October 23.
The non- obligatory event will provide both individual investors and companies with information about the
scheme and will feature presentations from Mackay Regional Housing Company
The NRAS information event will take place at Plantation Palms Head Office, 3 Montgomery St, Rural View, Qld 4740.
Register attendance at Plantation Palms before October 18 to secure your spot.