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Published: Thursday, 29 August 2019 08:16

The rise of not-for-profit real estate agencies will support investor confidence in the community housing sector as a whole, the National Housing Conference in Darwin has been told.

Speaking on a panel at the conference today, Bridge Housing Chief Operating Officer Rebecca Pinkstone said: “With new affordable housing subsidies, models and investment on the horizon, not-for-profit real estate licensing may, more broadly, support investor awareness and confidence in CHPs, and provide a clear competitive advantage through our joint CHP/realtor status.”

When Bridge Housing launched HomeGround Real Estate (HGRE) Sydney in April 2017, it became the latest of a small but growing number of not for profit (NFP) organisations stepping into residential property management. HGRE Sydney is part of the emerging HGRE network established in Melbourne by Launch Housing in 2014. 

Other NFP estate models have also developed as CHPs become licensed agents, including Evolve Housing, Link Housing (Sydney) and Property Initiatives Real Estate (Melbourne). 

In the HGRE model, profit from management fees are directed to providing additional low income housing solutions, leveraging the private market for social gain. Additionally, landlords seeking direct social return on investment offer their properties at reduced rent, thereby directly increasing the supply of affordable properties.  

HGRE ATO tax rulings support landlords offering discounted rentals. HGRE Sydney also manages properties developed under NSW and Federal Affordable Housing schemes, and can offer an integrated management solution for developers with mixed market and affordable housing builds. While the models do differ, all seek to return profits to provide housing solutions for vulnerable people, augmenting public investment in undersupply.