Questus to deliver $52m in new housing

Applecross-based funds manager Questus and property developer Australian Property Alliance are planning to build $52 million in new housing after receiving approval under the federal government's National Rental Affordability Scheme.

The company said in a statement that it had been awarded its full allocation of 176 properties under the scheme from Minister for Housing Tanya Plibersek.

The allocation follows the recent passing of legislation of the scheme, which was first introduced in July to boost the number of affordable rental properties.

The scheme aims to create some 50,000 new affordable rental properties for low and medium income earners across the country over four years and up to 100,000 over the next 10 years.

The scheme targets institutional investors and offers incentives to developers at a cost of $623 million over four years.

Under the NRAS, investors who build new rental accommodation and lease it to low and moderate income earners at 20 per cent below market rents would receive an annual $6,000 rental tax incentive per dwelling for up to 10 years.

In addition, the state government previously said it would contribute a further $2,000 per dwelling.

Questus today said it has developed a structure that allows investors to own property and receive up to an additional $8000 per year over 10 years, which will not be taxed.

The company along with its consortium members including Australian Property Alliance which trades as Niche Living, are looking to deliver over $52 million in new housing to the WA market.