G'day All,
I'm interested in the new rebate for investing in affordable housing. I read there are $8k tax credits for renting your IP 25% market rent in QLD. This appears to be to good to be true? for example if a $350k IP would normally rent for $350/wk then you drop the rent to 75% or $260/wk, this would reduce the rental by $4680pa, however if i understand it correctly you can reduce your tax bill by $8k therefore recieving a %8k check for the cost of $4.68k a profit of $3.32pa. Can anybody shed some light. Are there any limitations, ie slection of tenents, contacts, or other pitfalls???
Why doesn't everyone do it???
I briefly looked into this and there are restrictions on the house ie new, disability assescibility and needs to be leased for long period of time) and needs to be leased to qualified people (minority groups, low income, disabled etc – similar to Homeswest I guess) May be different in different states but looks like more trouble than worth for me.
One off $8k gain, long term 25% rent reduction. It don't take long to come out behind unless you have a new property on an extremely low rent base.
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