Developers Eye Strata With $80,000 On Offer 9/07/2009 A back-step by the Federal Government has opened the door for mid-size strata title property developers to access an incentive scheme valued at $80,000 in tax-free income.
An election promise to improve housing affordability aimed at large developments as been changed to better suit small developments, in response to a tightening of finance amidst the current economic downturn.
Mr Richard Tooker, whose company New South Wales Strata Management oversees hundreds of strata title properties says the change opens the way for the development of mid-to-small size developments in place of the mega structures previously envisioned as participants.
“The idea is a $623M initiative from the National Rental Affordability Scheme (NRAS) that has as its aim the delivery of 50,000 new affordable rental developments. The sponsors hope to reward developers for building and letting rental accommodation at a rate below market value and then reward them with tax and other benefits that make the idea palatable to investors.”
The scheme itself, he says, is fairly complex, but offers investors who buy eligible NRAS property annual incentives that add-up substantially over a 10-year period, the time frame established for compliance.
And New South Wales Strata Management, he says, is one of several companies that offer developer consultancy services capable of offering assistance that can help a developer keep their project on track and effectively managed.
“Organisations like ours can provide the management framework for the specific tenancy and property requirements of strata title schemes.”
This work he says can cover the set-up of strata and community schemes along with schemes books and records.
The work can also cover the impact of strata and community scheme legislation and development plans, and the structuring of schemes to provide specific and detailed advice regarding lot boundaries, common property and exclusive use areas.
“The establishment of record keep systems in accordance with the provisions of the Strata Schemes Management Act, the assistance with budgets and sinking fund forecasting, the arrangement of insurance cover, the provision of 109 certificates, consultation regarding by-laws, the convening of meetings and general oversight of obligations under the Act all come into play.”
He said that to be eligible for the NRAS programme that can provide a refundable tax offset of $6,000 from the Commonwealth plus a state contribution of $2000 in the form of cash support per year across a 10-year period, can be worth more than $80,000. Detailed information can be found at website www.housing.nsw.gov/Centre+For+Affordable+Housing/NRAS/
Investors, for their part, must be willing to rent the property at a rate 20 per cent below the market value as determined by an authorised property valuer.
Mr Tooker says developers and their legal representatives can avail themselves of existing data and record systems thus saving themselves and their client’s needless expense.
New South Wales Strata Management can be contacted on 9890 1841.
New South Wales Strata Management (formerly Gilmour Strata Management) commenced business in early 1991, as a member of the highly respected J A Gilmour & Sons group of companies. Licensed solely and specialising only in strata management services, the company has steadily grown to become one of the largest such organisations in New South Wales.
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