Investors in 37,000 NRAS homes will get no subsidy extension: Paul Fletcher

Investor owners of the 37,000 homes built under the National Rental Affordability Scheme will have to put those properties on the market or accept a lower return because the Commonwealth government will not extend the 10-year subsidy scheme when it expires.

Subsidies for the first 198 properties built under the affordable rental NRAS scheme started by the previous Labor government will expire next month and there will be no extension of the payment to owners to cover the yield gap on the units rented at 20 per cent below market value, Social Services Minister Paul Fletcher said on Thursday.

“The position for investors has always been clear,” Mr Fletcher said.

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Source: Financial Review