While it was disappointing that the recent budget axed the National Rental Affordability Scheme (NRAS) and didn't make any changes to Negative Gearing, it has reinforced the benefits of investing in new housing construction.
While there is a very small number of existing NRAS allocations still available nationally, there is more reason than ever for Australians to invest in new property even without the added incentives offered by NRAS.
Nick Proud, Executive Director of the Residential Development Council welcomed the chance to participate in a possible new scheme. “The property industry has long advocated for a review of the program to improve the outcomes and ensure it remains focused on delivering affordable housing supply.
"The scrapping of the National Rental Affordability Scheme is disappointing but leaves the door open to the government to focus on new levers to improve housing supply and affordability.”
The Housing Industry Association (HIA) has described the abandonment of the final round of the National Rental Affordability Scheme as disappointing.
"The scheme has resulted in thousands of affordable homes for low and moderate income households, increased Australia’s housing stock and generated countless jobs the process,” said Graham Wolfe, the HIA chief executive.
Last week, Managing Director of Property Asset Planning Brian Chant called for NRAS to be revamped and revitalize. Even with the scrapping of NRAS, Chant still sees the opportunity for investors to capitalize on the shortage that has now been created before the Government develops any new approaches.
“Investing in new property should be a number one priority for anyone wanting to build a solid future and support economic growth. Building new homes provides employment and as such taxation for the Government. New homes also give investors maximum returns in areas such as lower stamp duty, zero maintenance and maximum income tax benefits compared to investing in established homes.
“In South Australia, the timing to build a property portfolio could not be better with low interest rates and housing prices on the rise,” said Chant.
Property Asset Planning
The not so secret to our success has been a seamless end to end solution that takes the stress out of the process and involves relevant experts in finance, financial advice, Property Management along the way. At Property Asset Planning, we continue to develop plans to meet each clients unique needs and expectations well into the future.
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