Overview questus September 4, 2014

Questus has created a range of vehicles to suit the varying needs of different investors in Australia’s affordable housing sector.

What is affordable housing? Occupying the space between Government-owned social housing, made available to those on welfare, and privately owned dwelling where rents are determined by those who own them, affordable housing typically provides investors with an attractive tax or other incentive in return for renting out their property for lower than the usual market rate.

The National Rental Affordability Scheme (NRAS) dominated investment in affordable housing from 2007 – 2014, before being ended by a Federal Government decision in May 2014. Questus investors who bought properties through NRAS continue to own them through QRIF, and new affordable housing investors will do so via alternative models, such as QCIF or APMF.

The benefits for investors in affordable housing are:

Tax incentives – typically, investors in affordable property are compensated for reduced rents with attractive tax incentives;

Secure rental income – Because rents are discounted below average market rates, void periods are unusual;
Hassle-free management – Properties are managed by experienced agents on investors’ behalf;

Quality control – all newly-built properties are constructed according to monitored specifications;

Exit options – Investors have all of the usual exit options available to private investors when the affordable housing term ends.