NRAS reform

Don't know anything about the planned reform. But sure some will have plently to say......

Treasurer to reform rental scheme

 

@euro73 would you have any insight to this at all?
Do you think there may be another round of something similar?

 

They could make NRAS deliver scale very easily. All of the problems with getting large scale developer buy in are at the Governments end, not the developers end. It delivers. It could deliver on a far grander scale. All they need to do is make the process black and white for developers to apply for credits, and make a rolling pool available annually. This creates certainty, and with certainty comes subscription.

Morrison can look at as many o/seas models as he like, but NRAS was designed around the very successful US Low Income Housing Tax Credit. It was pure Reaganomics and delivers scale... it has delivered almost 2.8 million dwellings since 1987. Thats @ 140,000 per annum , over @ 20 years

 

I know several developers that applied and got rejected.

 

I think the 'scale' part that is missing, in my opinion, is that from a financial point of view it's more profitable to put it on one bedders in a low rent area so the 20% loss is minimised and the annual rebate is maximised. So for that reason there is a lot more studio/one bedders and a raft of student accomodation rather than 3-4 bedders for families. I know that there are 3-4 bedders but it's harder for the sums to work.
If there was scaling on the rebate, ie $8k for a one bedder, $10k for a 2 bedder, $12k for a 3 bedder, $14k for a 4 bedder I think there would be more diversity. Or a bonus rebate for being within 5km of the city so that it's not all whoop-whoop housing.
Vote me for PM

 

There was a pretty good mix of houses and townhouses as well - and over 76% was metro stock .

 

100% of applications I have made on behalf of developers were approved, except for Round 5 - which was cancelled for everyone. I've also had 100% success with transfers and substitutions. The process rewards detailed applications with comprehensive supporting documents. From talking with many others who have made applications, those who didnt pay attention to detail weren't successful...

 

Wow I had no idea QLD had so many allocations!

High level it is a fairly good mix but you can see that 2 bedrooms and under are the majority with only 12,000 of the 37,000 being 3 bedrooms or more.

 

Does anyone have any further information on this..

Turnbull Government to axe national affordable housing scheme

"
Given the nearly $9bn of payments from the Commonwealth to the states and territories under this agreement since 2009, it’s understandable to question the value of this spend, given affordable housing outcomes have got worse over that time.”

Axing the agreement would save the Government $1.5 billion a year."

Will this only apply to properties yet to be built? Because it sounds to me like existing owners might not be paid..

 

Not NRAS

NRAS to be canned in May budget?