STAY SAFE AND INFORMED FOR NRAS Property

For many people the chances of investing in a property is very slim. Most people have dreamt about taking the plunge and investing in property but in the end they pay off the purchase because of lack of affordability. Well if this is you then listen carefully because now you dream can come true thanks to the new initiative introduced by the Australian government. They have introduces the NRAS property investment specifically designed to help middle income earners to invest in NRAS property. This is done by offering tax free incentives.

But unfortunately there is plenty of misinformation there when it comes to NRAS property investment. While investing in NRAS property can be a very valuable exercise, there are several things that you need to be aware of before you proceed. There are several companies that have taken the NRAS acronym and used it for their business or web address. This is because the government has failed to give the required protection to the NRAS acronym. Some of these companies try to give an impression to their clients that they are part of the NRAS and that they sell NRAS property.

So if you are thinking of NRAS property investment please be careful when dealing with a company. All the private companies who are claiming NRAS property should have a disclaimer clearly stating that they are not the part of NRAS and that they are private companies. Be careful about all the information of NRAS that you may get to hear from journalists, property authors or commentators. Rely on reputed sources because they up to date with the latest NRAS changes. Also be careful when you read about NRAS on the internet, you may still find articles written two years back on the internet. They do not give the latest information.

                                           

 

 NRAS Property

Another thing to be aware of is that many industry professional have not heard about NRAS property investment. There are many mortgage brokers, financial planners, accountants who are not aware of the existence of NRAS property. Another reason why lenders do not lend for NRAS property is because of out of date information. This is one of the reasons why these properties are valued below the purchasing price. The bottom line is that NRAS works differently now than what it used to when it was launched. So make sure you deal with somebody who the right information and has his facts clear.

In the end there are some last key points for you to consider when thinking about NRAS investment. Lodge an income tax variation form or cash flow could be a matter of concern. Some NRAS models cost more to run, not all of them are equal. Some finance limits may also apply. Like any other property investments not all NRAS approved properties are suitable for investment. Your main aim should be to look for good long term investment property whether it is any other property investment or NRAS. And the last thing is that avoid being ripped off some NRAS approved properties are priced above their true value, so when invent in any make sure you are in trusted hands.        

NRAS Property Investments

The National Rental Affordability Scheme NRAS) is a long term commitment by the Australian Government to invest in affordable rental housing. The NRAS seeks to address the shortage of affordable rental housing by offering financial incentives to the business sector and community organizations to build and rent dwellings to low and moderate income households at 20 per cent below-market rates for 10 years. NRAS aims to increase the supply of new affordable rental housing; reduce rental costs for low and moderate income households; and encourage large scale investment and innovative delivery of affordable housing. The Australian Government has committed $1 billion to the Scheme over four years to stimulate construction of up to 50,000 high quality homes and apartments, providing affordable private rental properties for Australians and their families.

NRAS is a great opportunity for property investors to have a property investment in a high capital growth area but still receive the positive cash flow provided by the generous government grants. I believe this is a small window of opportunity where a property investor can build their asset base with no need to take a hit on their cash flow, in actual fact you will increase your cash flow position. NRAS offers a substantial annual tax-free incentive, the NRAS Incentive, for every dwelling built under its auspices. Investors making property investment need to apply for NRAS Incentives, and if offered, must agree to rent approved dwellings at 20 per cent or more below current market rates, to low and moderate income households. The NRAS Incentive is a funding stream not available to standard residential property investors.  Each approved dwelling attracts the NRAS Incentive for 10 years, so long as investors continue to comply with conditions around tenant eligibility and rent discounts. NRAS investors can expect to benefit from the annual NRAS Incentive, rental yields and capital gain. The NRAS program is also designed to provide a method and incentive for property investors to build wealth through NRAS property investment, while also stimulating the economy and the building industry across Australia. NRAS property investment is like purchasing any other investment accepts it comes with greater added benefits.

NRAS property investment is a government program to solve crisis in housing affordability. It encourages buying investment property with affordable rentals to the renters. The NRAS Property Investment program creates a new class of investment property which is fully freehold owned by the investor, while being approved by the Government Agents for rental to qualifying families at a reduced rent in return for significant annual tax credits and a ten year membership of the program.  The stated objective is to deliver 50,000 rental dwellings over four years nationally. It is estimated by the Government that over 1.5 million households will be eligible for tenancies under the NRAS program, giving the property purchasers a high level of secure rental demand. NRAS property investments have similar value with the neighboring properties. This makes buying this investment property more attractive to investors as well as to the tenants. 

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