A Trip Back in Time: How People Talked About Phuket Villa 20 Years Ago

Posted by Millsaps on June 6th, 2021

Firstly, if you aren't sure what NRAS is, I'll give you a quick run down. NRAS stands for National Rental Affordability Scheme, and is an Australian federal government program to tackle the housing affordability crisis by encouraging more private investment in affordable rental accommodation. In short, the government is offering to pay generous incentives to investors who offer to rent their property at 20% below the market rate to eligible tenants. Currently, these incentives are valued at over ,000 per year in tax free income and are offered for a ten year period.

However, while the NRAS program aims to provide more affordable rental accommodation to Australian tenants, this does not make it social housing. Social housing is undesirable from an investment point of view for a number of reasons, partly because of investor concerns about the quality of tenants and partly because social housing is unfortunately often constructed in large estates or apartments blocks. This devalues each individual property within the development as it is located in an overall area of disadvantage.

Fortunately, NRAS homes do not have any of these characteristics. NRAS homes are required to be scattered throughout communities at a maximum density of 30%. They must also be of Phuket Villa a similar value to nearby properties. This means that NRAS homes are essentially no different to a normal investment property of a similar value, and ensures that NRAS tenants remain integrated within the wider community.

Another difference between social housing and NRAS affordable housing is the tenant eligibility requirements. While social housing is available to only the most marginalised members of our communities, NRAS has very generous eligibility criteria. NRAS was designed to relieve rental stress on ordinary, low to moderate income working families. In fact, the income eligibility criteria are so generous that the average rental household is eligible for NRAS. The Australian government estimates that 1.5 million households across Australia are eligible to participate in NRAS.

Because NRAS properties are rented at 20% below the market rate, they will always be very attractive to tenants, and because so many households are eligible for participation in NRAS, it can be expected that there will always be a lot of competition for these properties. This means that as an NRAS landlord, you can be very discerning in picking tenants.

Additionally, because there is no essential difference between and NRAS property and its neighbouring properties, you will still have a quality asset at the end of the ten year program, unlike social housing which devalues rapidly. All in all, NRAS affordable housing is a very different class of asset to social housing, and one that offers a range of appealing characteristics to the discerning property investor.

In United Kingdom, the Council house is considered a form of public or social housing. The main aim for the construction of these Council houses was to build good and uncrowded homes at reasonable rates for the local population of Britain. It is said that roughly 45% of the country's housing is managed by housing associations, 40% is owned by local authorities and 15% are operated by arm's length management organizations.

Almshouses were established from the 10th century, to provide a place of residence for "poor, old and distressed folk". The first recorded Almshouse was founded in York by King Athelstan, and the oldest is the Hospital of St. Cross in Winchester. During the Industrial Revolution in the 19th century many philanthropists and social commentators said that these homes increased sickness and deaths.

Hence, the pressure for decent housing increased during this time and Council houses were constructed. As a consequence the London County Council opened the Boundary Estate in 1900, and many local councils began building flats and houses in the early 20th century. Moreover, the First World War provided a further impetus for the construction of neatly build flats and homes for the poor and sick.

However, afterward tower blocks became the preferred model. The argument was that more dwellings could be provided this way (a claim on which research at the LSE has cast serious doubt). On many estates, older council houses, with their largely superior build quality, have outlived them.

For many working class people, these types of homes provided the first experience of private garden space (usually front and rear), as well as the first private and indoor toilets and bathrooms, with hot running water. Central government (under both the Conservative and Labor parties) saw the provision of housing as a major part of its policy, and provided subsidies for local authorities to build such housing.

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Millsaps
Joined: June 4th, 2021
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