qld affordable housing consortium ltd and the dna partnerships call for 15,000 dwellings
TRANSCRIPT
Qld Affordable Housing Consortium Qld Affordable Housing Consortium Ltd and the Ltd and the
DNA PartnershipsDNA Partnerships
CALL FOR 15,000 DWELLINGSCALL FOR 15,000 DWELLINGS
www.dnapartnerships.com.au
www.qahc.asn.auwww.qahc.asn.au
Call For 15,000 Dwellings
NRAS Round 3 is Open and the Consortium has already submitted over 3,000 dwellings
Our priority States are NSW, Victoria and South Australia [But we welcome proposals from across Australia]
The Consortium will lodge a minimum submission of 1,000 Dwellings per month, every month until September. We package small and medium sized sites as well as large sites to meet the minimum 1,000 dwellings per submission
All dwellings must be ready to let by June 2012 Call Mike on 0438 112 553 or Robin on 07 3844 9947
Examples Of Approved StockExamples Of Approved Stock
14 x 3 Bedroom Townhouses
14 x 3 Bedroom Townhouses
Est. Market RentEst. Market Rent $385$385
Discounted RentDiscounted Rent $289$289
• 5 schools within 2 km, closest 300 m
• Bus service located 300 m to property
• 11 km from Brisbane CBD
NRAS – A Supply-Side intervention
Supply shortfall of 200,000 dwellings by 2013 [NHSC -2009]
NRAS is an industry policy response to drive supply of at least 50,000 new rental homes
Tax Free Incentives of $8,672 [indexed] per dwelling / per year for 10 years stimulates new investment
NRAS improves affordability for working families by providing a minimum 20% discount to market rents for the 10 year NRAS period. [25.1% in our Model]
Quality in design and Quality in design and productionproduction
39 x 1-3 Bedroom Apartments
39 x 1-3 Bedroom Apartments
Est Market RentEst Market Rent $280-$280-$350$350
Discounted RentDiscounted Rent $210-$210-$263$263
• 6 schools within 2 km, closest 500 m
• Train service located 1.1 km from property
• 1.5 km from Caboolture CBD
NRAS is a market product
NRAS
Market designs and type Market built Normal Market valuation Privately owned 10 years in NRAS Market based rent – discounted and indexed Private rental tenants with improved tenant choice Diversified portfolio and integrated delivery within
mainstream developments and infill sites
Traditional stock within a larger developmentsTraditional stock within a larger developments
28 x 4 BedroomHouses
28 x 4 BedroomHouses
Est. Market RentEst. Market Rent $330$330
Discounted RentDiscounted Rent $248$248
• 12 schools within 6 km, closest 2 km
• Bus service located 3.3 km to property
• 3.4 km from Caboolture CBD
NRAS – Who are the tenants 1.5 million eligible households underpins strong demand
Key workers: Childcare workers, firefighters, nurses and hospital support workers, teachers, public transport workers, local council workers, community workers.
Many workers on award wages. Part time and casual workers
Over 55’s on low to moderate incomes
NRAS can assist economic outcomes eg hospitality and retail workers in tourist areasSingle Adult $41,5142 Adults $57,391Couple + I child $71,159Single + 1 Child $57,432Couple + 2 Children $84,927Single + 2 Children $71,200Couple + 3 Children $96,695
Households that are NRAS tenants can earn 25% more than these limits andstill retain eligibility, promoting neighbourhood stability and orderly re-letting
New Growth Corridors close to jobsNew Growth Corridors close to jobs
31 x 4 BedroomHouses
31 x 4 BedroomHouses
Est. Market RentEst. Market Rent $385$385
Discounted RentDiscounted Rent $289$289
• 8 schools within 10 km, closest 2.3 km
• Train service located 2.5 m walking distance
• 29.4 km from Gold Coast CBD
What rents are considered affordable
Under the Consortium Model Investors receive the full $8,672 per year tax free income and provide a 25% discount in rents under ATO Charitable requirements
By mapping rents and income levels, we can demonstrates the Scheme’s is clearly targeted to working families. Discounted rents are simply not affordable to those on social incomes.
These are some examples of market and affordable rents under NRAS $35,000 Single person Income = $250 market rent is $187 discount rent $45,000 Household Income = $300 market rent is $225 discount rent $55,000 Income = $400 market rent is $300 discount rent $75,000 Income = $530 market rent is $397 discount rent $85,000 Income = $600 market rent is $450 discount rent $95,000 Income = $685 market rent is $515 discount rent
Universal Design Standards Universal Design Standards Apartments for retirees and also Apartments for retirees and also
workersworkers [particularly retail and [particularly retail and hospitality]hospitality]
241 Apartments in Total
150 Available to NRAS Studio 1 Bedroom 2 Bedroom
241 Apartments in Total
150 Available to NRAS Studio 1 Bedroom 2 Bedroom
1.8km from School
0.1km from Transport
0.1km from the water
Prospective Image
Google Map 20k
How we Facilitate Your Participation
We provide information about NRAS and affordable housing to assist your decision making
Assess your proposed development projects to see if they:-• Meet Government Requirements• Can attract a pool of eligible tenants• Provides good investment values and returns
Make a Submission to Government for the Project Provide any special assistance required for packaging and
delivering the project Undertaking marketing and sales through our Institutional Strength
Investment Platform Take a 10 Year Headlease over the dwelling Allocate and supervise property management for 10 years Facilitate access to the Tax Incentives and net income streams
Regional Centre’s with good job prospectsRegional Centre’s with good job prospects
9 x 3 & 4 Bedroom Houses
9 x 3 & 4 Bedroom Houses
Est. Market RentEst. Market Rent $330-$330-$370$370
Discounted RentDiscounted Rent $247-$247-$277$277
• 8 schools within 15 km, closest 1.2 km
• Train service located 1.4 km from property
• 17 km from Gladstone CBD
6 x 3 Bedroom Townhouses
6 x 3 Bedroom Townhouses
Stock Selection: Type, Location and Proportions
Locations are characterised by Strong demand and rental stress Good existing infrastructure, transport, services and jobs [Capital
Cities / Growth Corridors / strong regional cities]
NRAS stock is market stock. It can be in master-planned communities, green-field or infill sites Typically around 15 – 25% in house and land integrated in master-planned or
green-field sites 50% in infill, or in some cases a full apartment block or townhouse development if
integrated in the wider area
Housing types reflects household, demographic and market supply factors:
Around 50% target for 1 and 2 bed dwellings and around 50% target for 3 and 4 bed dwellings
Affordable housing where Affordable housing where people want to livepeople want to live
31 x 1 & 2 Bedroom Over 55’s Apartments
31 x 1 & 2 Bedroom Over 55’s Apartments
Est Market RentEst Market Rent $280$280
Discounted RentDiscounted Rent $210$210
• Services and recreation on site
• Bus service located 125 m walking distance
• 12 km from Maroochydore CBD
DNA PartnershipsDNA Partnerships
An institutional strength aggregation product An institutional strength aggregation product platform for supporting a legislated platform for supporting a legislated
Commonwealth initiative – The National Rental Commonwealth initiative – The National Rental Affordability Scheme (NRAS) Affordability Scheme (NRAS)
Governed by Governed by
DNA Mutual Ltd and administered by Integration Management and Communication Services Pty LtdDNA Mutual Ltd and administered by Integration Management and Communication Services Pty Ltd
AFSLSelf
Regulated
Property sold to market
NRAS ASSET TRANSACTION PROCESSNRAS ASSET TRANSACTION PROCESS
DEVELOPERS
NRAS
Valuation
Research
Eligibility
Wholesale Distribution
ACCEPTED
NRX listing
For sale
Investment Investment CommitteeCommittee
Regulator
Institutional
Real-estate Performance
Transaction
Research
DNA NRASINSTO
INSTO
INSTO
AFSL
AFSL
Satisfies Approval CriteriaSet by
Investment Committee
Unitised Trust
Direct $400k
Sales to open
market
Sales to open
market
Smaller dwellings to meet Smaller dwellings to meet diverse needs- right in the diverse needs- right in the
heart of the townheart of the town
36 x 2 Bedroom Apartments
36 x 2 Bedroom Apartments
Est. Market RentEst. Market Rent $280-$280-$320$320
Discounted RentDiscounted Rent $210-$210-$240$240
• 13 schools within 4 km, closest 500 m
• Bus service located 700 m from property
• 700 m from Caboolture CBD
Managing the NRAS investment A fully managed investment
Legislation, Regulation and Compliance Investment through financial instrument or real property Owners Pack with 10 year Headlease and Property Management Agreement
Secure income stream [NRAS does not facilitate guaranteed income] Tailor-made Group Insurance based on risk profiling – provides cash-flow payment
in certain circumstances ATO private ruling on the flow through of the Tax Incentive to Investors Performance based management with 2 weeks vacancy cover in any lease period
Buying and selling Creating a strong diverse market of buyers and sellers Normal Bank repossession provisions Owner Right to sell out of NRAS
• Option to sell to another investor with NRAS intact Potential to provide ‘rent to buy’ option for NRAS tenants
Getting the basics right Good locations and associated infrastructure & diverse portfolio Strong and diverse tenant pool & tenants financially incentivised Standardised performance based property and tenancy management, with a focus
on creating strong, mixed income and stable neighbourhoods
On Transport CorridorsOn Transport Corridors
14 x 3 Bedroom Townhouses
14 x 3 Bedroom Townhouses
Est. Market RentEst. Market Rent $420$420
Discounted RentDiscounted Rent $315$315
• 5 schools within 2 km, closest 500 m
• Bus service located 280 m to property
• 7 km from Brisbane CBD
Frequently Asked Questions
Normal market valuations Normal lending criteria on asset class
Bank powers & repossession rights as normal LMI – Genworth will insure ‘Mom and Dad’ investors and take NRAS
income into account
A National approach and institutional strength product design by way of the Head Lease & Secure Income Stream Delivery
Access to NRAS market through DNA aggregation
Owners can enter and leave the Scheme as a ‘market’
ATO has a clear position on QAHC Model and investor Tax-Free entitlements
Flinders StFlinders StMelbourneMelbourne
263 Apartments in Total
70 Available to NRAS 1 Bedroom 2 Bedroom
263 Apartments in Total
70 Available to NRAS 1 Bedroom 2 Bedroom
Prospective Image
Google Map 20k
1.1km from School
0.3km from Transport
1.1km from Flagstaff Gardens
Current Status
911 Approvals in 2009
3,082 dwellings already submitted in 2010.
15,000 dwellings across Australia to go through our assessment process [ January to August 2010]
3 sites sold and tenanted
300+ dwellings now under contracts for sale
Bank retail investment funding expected $3BN. Institution investment expected $3 BN
Pilot large scale ownership program with financial institutions
Financial products to deliver liquidity- PDS
What are the Consortiums costs and who pays
Developers / Builders To prepare and lodge your project to the Government is
$125+gst per dwelling payable to QAHC upon agreement Once NRAS approved, you provide progress reports and an
Environmental Report using our checklist You will need to hand over dwellings in a ‘Ready To Let’ State –
you can use our checklist
Owner-Investor Purchase fees & Legal Fees including Registration of the
HeadLease on Title The Required Group Insurance Normal Owner Costs 10% Property Management Fee $12+gst Compliance Fee per dwelling per week
Popular Town Popular Town HousesHouses
22 x 3 Bedroom Townhouses
22 x 3 Bedroom Townhouses
Est. Market RentEst. Market Rent $440$440
Discounted RentDiscounted Rent $330$330
• 6 schools within 2 km, closest 600 m
• Bus service located 800 m to property
• 18 km from Brisbane CBD
Applying For NRAS Whatever your proposed portfolio for NRAS it will need to be part of
a minimum 1,000 dwellings-. We package up smaller projects to meet the 1000 minimum threshold
Review NRAS Documentation at www.qahc.asn.au and complete the Round 3 EOI on our website
Decide your sales or holding strategy including any agreement to access DNA national NRAS distribution platform
Review Stock Profile checklist and identify the numbers and locations and types you are offering. [Must have D.A or close to D.A decision to submit to NRAS]
QAHC reviews your Expression of Interest and negotiates a mutually agreeable number and type
QAHC issues Submission Checklist and invoices lodgement fee QAHC Submissions will be made monthly and Government turn
around times expected to be 8-10 weeks If NRAS Approved, sign the Heads of Agreement to provide
contractual certainty to deliver