Affordable housing options benefits both renters and property owners
HomeGround Canberra offers affordable properties for renters without compromising returns for the property owners.
Lower cost option for renters that doesn’t compromise investors
Canberra is the most expensive city in Australia in which to rent. However, there is now a lower cost option for renters that offers incentives for landlords as well. It’s a program offered by HomeGround Real Estate Canberra, which is run by one of Canberra’s leading property management specialists, Maria Edwards.
Maria has been working in the Canberra property market for 15 years and has won multiple awards for her capabilities in property management. Maria explains that HomeGround looks for “average rental properties of around $550- $600 per week for a three bedroom home” although the scheme is open to all types of residential properties. HomeGroun pre-qualifies tenants, actively screening them to meet specific income, household and credit history criteria. Ultimately, the landlord has the choice of which tenants will be occupying the property. “These tenants are amazing and they are scrutinised more closely than they would be by a standard property management business”, she says.
HomeGround is a unique proposition. They are the only licensed real estate agency in Canberra that allows landlords to access additional tax incentives in return for supporting rental affordability.
Landlords may receive tax concessions
If the properties are offered for rent through the program, the Landlord may receive an exemption for land tax. In addition, if the property is rented below market rate, the owners receive a donation certificate for the difference, which they can claim as a tax deduction. These two factors coupled together mean that property owners can participate in the program without sacrificing any income.
The program works like this. Say, as a property owner, you have a three bedroom, one bathroom modest home in Narrabundah. The market rent for this property is $570 per week. However, you participate in the HomeGround program and offer it for rent for $425 per week (which is $145 per week less than market). The property will be exempt from land tax (approximately $161 per week). In addition, you will receive a donation certificate for $145 per week for the number of weeks rented in the financial year. You can then claim this as a tax deduction. In this situation, the owner is $16 per week better off and the tenant is $145 per week better off*. In addition, the owner has been able to assist a family who may not otherwise be able to afford the property. They can make a difference without compromising their own financial situation.
Social good and philanthropy
But it’s not all about the money, Maria explains. “it’s about seeing the social difference it can make as well. Families that are on modest incomes who may not be able to find an affordable property to live in receive real and lasting benefits from the program. A lot of these tenants have gone without just have a place for their family to live. I think, for them, it gives them hope for the future”, Maria says.
There are other options for owners under the HomeGround program. These include listing the property at the market rate or donating the use of the property. This might be an option for property owners who don’t need the income but want to do some social good. For more information, contact Maria Edwards, HomeGround Canberra. Email firstname.lastname@example.org or visit the HomeGround website .
This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. The examples used are illustrative only and are not an estimate of the investment returns you will receive or fees and costs you will incur.