Following recent criticism of the National Rental Affordability Scheme (NRAS) in the media nationally and suggestions the program should be scrapped by the Federal Government, the issue has been widely debated.
Property Asset Planning Managing Director Brian Chant today supported calls from the Property Council of Australia’s Executive Director of the Residential Development Council, Nick Proud, for the Federal Government to continue support of NRAS.
Mr Chant, whose company, under the brand NRAS4SA, sold hundreds of NRAS properties in South Australia and helped hundreds of South Australian families into affordable rental accommodation said, “In SA we have seen little evidence of problems with NRAS which have been recently reported in The Australian newspaper and other national media.
“I certainly agree with Nick Proud’s views in rejecting suggestions that the scheme be wound up.”
The criticism that NRAS properties were being used as international student accommodation doesn’t seem to be an issue in South Australia. However, irrespective to that, there is way too much evidence showing the success of the program in addressing the shortage of affordable rental accommodation where it is needed…close to schools, transport, shopping centres.
Mr Proud has said, “The NRAS program is based on similar schemes overseas which have had success in improving housing affordability and supply.
“To suggest that the program should be wound up is short sighted and misguided. Australians consistently nominate housing affordability and supply as a top five issue and this is the one Federal Government program that aims to address Australia’s housing shortage.”
In recent statements the Federal Minister for Housing has stated very strongly that there is an affordable housing crisis and that he was committed to dealing with it.
“Given the success I have seen from the point of view of both investors and a tenant I see no reason to scrap NRAS now. Yes there are a few areas that need to be tightened up but lets not start from scratch with a new program to address an urgent problem,” Mr Chant said.
Last week Chant supported calls for the Government to tighten negative gearing rules as another measure to address the housing affordability shortage. He strongly believes negative gearing should only apply to new property and hence channel more investor funds where it’s needed.
“Combining changes to negative gearing with a reinvigorated NRAS program will, based on our experience in SA, make a huge difference and very quickly,” Chant said.
As Nick Proud says, “The new Abbott Government has an opportunity to take a good program and make it better.
"I would urge the government to reform NRAS and ensure that the supply of affordable housing continues to be addressed,” Mr Proud concluded.
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ABOUT BRIAN CHANT
Brian Chant started Property Asset Planning having been involved in the building and real estate industries for a number of years where he also invested in many properties himself as a means to build a solid financial future and reduce his taxable income. Property Asset Planning has become the vehicle to assist hundreds of others to do the same.
Rick Carter, eNova DIGITAL