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"RealEstate.com.au", Willoughby: save 20 per cent on more than 40 new affordable apartments, 29 June 2017
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Low and moderate income earners in the lower north shore will be able to shave 20 per cent off their rental bill on 42 new homes in Willoughby.
One of the country’s most expensive housing markets, the north shore is a haven for luxury developments, but more than half of the 74 units in newly opened apartment complex at 34-42 Penshurst St, Sienna, will be used as affordable rental housing.
The 42 affordable housing units in Sienna will be reserved exclusively for those earning a maximum annual income of $59,900 for singles and a combined $89,900 for couples. Tenants moving in to Sienna include those working in the health industry, retail, childcare and transport sectors.
Developer Hyecorp has kept 16 of the affordable homes while the remaining 26 have been sold off-the-plan for an average price of about $700,000; a price estimated to be about 85 to 90 per cent of the full market value.
Andrew McAnulty, chief executive of Link Housing, the community housing provider who will be managing the 42 affordable units, said the development proves affordable housing can be delivered in high value areas such as Willoughby.
“These are 42 great homes close to transport and amenities that are targeted at local, key workers on moderate incomes,” he said.
About a quarter of the 1500 homes that Link Housing manages are on the north shore, signalling the robust demand for affordable housing in the area, with the median price of houses in the North Shore Times coverage area sitting at $2.118 million — up a whopping $18,000 from last month.
Affordable housing is different from government-owned social housing in that it could be held by private investors or developers. They must be rented out to low and moderate income earners at a discounted rate for 10 years. The maximum income thresholds of affordable housing, which depend on household size and are updated annually, are usually higher than that of social housing.
Developers are granted higher floor space ratio and density as an incentive for including affordable housing in the project. Investors can also expect a discount to compensate for the reduced rent when buying properties under the affordable housing scheme.