After launching a new investment model for property at the affordable end of the residential rental housing market in 2009, Community Housing Limited (CHL) Managing Director Steve Bevington has confirmed that private investors are taking up the opportunity to invest in housing developed by the not-for-profit community housing organisation.
“The uptake has been extremely encouraging,” says Mr. Bevington. “There is tremendous appeal for investors to have a property managed and maintained by a professional housing organisation which guarantees rental return.”
Properties that are being designed and constructed by CHL are being bought by investors who lease the property back to the company for a required period of ten years. During that time CHL provides the same rental yield that an investor would expect from a privately rented property without being charging rental administration fees or having any vacancy risk.
At the conclusion of the lease period, investors can continue to rent the property privately, or realise the property’s capital growth over the previous decade by selling.
“After the billions of dollars invested by the Federal and State Governments in affordable housing, investors have gained a lot of confidence in the sector and can see what a growth area this part of the housing market represents. Not only are they doing something very positive for the community, but they are getting a market-based return,” says Mr. Bevington.
‘The affordable housing movement is here for the long term and will ultimately make up a significant proportion of housing in our communities. A major opportunity exists for private investors to consider steps to take up this investment.
Community Housing Limited (CHL) is a national and international provider of affordable housing.
Its mission is ‘to provide affordable and sustainable housing for all’. CHL is a registered Housing organisation in Victoria and an approved growth provider in NSW, Tasmania, WA and SA. Its international operations are located in Timor Leste, Chile, and most recently India.
CHL is a vertically integrated operation that manages the entire housing lifecycle. This includes securing funding, locating suitable land, project managing, designing and constructing, then managing the tenancy for the long term which includes collecting rents and maintaining the property.
For more information on CHL, contact:
Patricia Vaz Steve Casey
Manager – Executive Services Media Liaison
t 03 9856 0050 t 03 9817 4506
m 0430 555 241 m 0419 206 373