Initiatives for Affordable Housing and Discounted Rents
Finding a suitable home is one of the challenges so many individuals face nowadays, especially because the rents just keep going up. Renters in Melbourne are facing difficulty finding affordable housing that would be good enough for them. The idea of finding that perfect home might be impossible for so many people at the moment so renting is the next best thing. However, there’s still uncertainty whether there’s even an option for those who do not have enough funds to rent a place.
Sydney and Melbourne, which are major states, known to have very expensive rental properties seem to be looking for ways or initiatives to help out those who need the support. Real estate agencies are teaming up with community organizations such as Launch Housing. Landlords who rent out properties for at least 10 percent least below the market price are given the option to according to a report, claim the difference as a charitable tax deduction.
Schemes that allow landlords to offer rent reductions operated by agencies in various states may also receive perks. There is eligibility for land tax exemptions and capital gains discounts that will be under the measures of the government. The growing number of landlords that are banking on these measures created by the government, fortunately, understands the value of making it easier for the next generation in terms of housing. Older adults who were able to acquire property and earn well understand the plight of people who are facing challenges when it comes to housing. The rental crisis plus there’s still the housing unaffordability and it’s a good thing that these landlords want to be a part of the solution.
According to HomeGround Melbourne’s principal, Simone Curley, 95 percent of 300 investment properties they manage were leased below the market rate, and looks like over the past year, their portfolio has grown up to 75 percent. What is great about these rental discounts is that they may range from 10-50 percent. However, tenants must still meet the income-eligibility criteria.
While it is true the rent reduction would not be possible for everyone, experts and landlords encourage their fellow landlords to consider the initiative with the reassurance that they still got a choice in terms of asking for rent and selecting their would-be tenants. Unfortunately, landlords in Sydney are much harder to convince jumping on board. Like what we have mentioned, Sydney has the most expensive property market but so far, there is some interest growing.
During the pandemic, some landlords in Sydney have agreed to offer discounts with an average of 25 percent. Hopefully, more landlords would join the initiative to help out those who need a more affordable place to stay.
The initiatives that have been created since last year are band-aids and would not be enough to solve the severe problems with housing affordability. But even if just one person or one family that could take advantage of these projects is a huge thing. The challenges we face when it comes to finding the long-term solution to the housing affordability problem are not going to end anytime soon, but these are major contributions we could do to change people’s lives.
Xotel is one of those businesses that that believe we can do better for our fellow Australians. We will continue to partner with the government to bring affordable housing to the less privileged.