Published on June 25th, 2013
Western Australia to receive 1,000 more affordable homes
In a bid to help tackle housing affordability in the state, the Western Australian government has announced $48 million in funding to supply 1,000 more homes.
This will be part of the National Rental Affordability Scheme (NRAS), which is being implemented across the country to improve the rate of housing affordability for many Australian families.
This announcement from the state government could be great news for property investors looking to add another residential property to their portfolio.
Houses under the NRAS are rented for at least 20 per cent less than private market rents, and are available for moderate and low income earners.
"This government has already delivered more than 7,600 dwellings – this adds another 1,000 and takes us closer to the target of 20,000 additional affordable housing properties by 2020," said state housing minister Bill Marmion.
"This funding will make a real difference to thousands of people looking for a place to live. It provides homes at significantly reduced rent for those finding it difficult to find a private rental."
NRAS properties are normally located close to public transport, amenities and employment areas, meaning that they make a sought-after option for many accommodation seekers.
There are a number of benefits from buying a property under the NRAS. One of the benefits is that owners are able to receive an income tax-free incentive payment per year for up to ten years.
This funding is provided from both the state and federal governments, and is adjusted according to the Consumer Price Index.
"The state government will make a significant financial contribution to this program at $2,587 per dwelling, indexed yearly for the next 10 years, in addition to the incentive provided by the Federal Government," said Mr Marmion.