What is the NRAS?

The NRAS Scheme has two primary goals that make it highly successful

  1. To increase the supply of new rental housing directly into the housing market nation wide
  2. To improve affordability for the eligible target groups

The NRAS Scheme will facilitate the construction of 50,000 dwellings nationally to be supplied into the Rental Market for “Middle Australia” families and individuals

  • The Commonwealth Government has identified 1.5 million households across Australia that are in housing stress
    • meaning that they cannot afford to buy a property to live in or rent one
  • A vast number of these households are ‘Middle Income Australians’ with a household income in excess of $100,000 pa
    • There is simply insufficient accommodation available to meet this very high demand
    • with the supply shortfall to this Middle Australia Market running around 30,000 to 40,000 dwellings a year
  • This is a massive opportunity for Investors
  • New tenants are sourced via Immediate Access to the State Tenant Lists
  • The Federal and State Government stepped in with the NRAS initiative
    • an incentive scheme designed to encourage investors to develop additional housing for the rental market
    • To provide these rentals at affordable rents
    • Which in turn provides higher than usual returns for investors in the residential market
  • An initiative to stimulate both Institutional and Private Investors to invest in the rental property market
  • The NRAS program will provide “tax free incentives” to 50,000 new rental dwellings for a period of 10 years
  • This incentive is a Tax Credit of $10,350 per anum per dwelling, per year, for 10 years
    • Escalated at the Rental Component of CPI (last year being 5.4%) as published by the ABS in each state
    • Investors provide a minimum rental discount of 20% (where the property is managed up to 25%)
  • Example : If market related rent is $400pw and you apply a discount of $100pw to the tenant. Utilising the Tax Credit of $10,350 pa  or $199 per week … you will note that as an investor you are already $119 dollars ahead per week.
    • This is your incentive for choosing to Invest to assist some of the 1.5 million distressed households!
    • Market Rent is assessed at the Market Value of Rents charged by similar accommodation in the Local Real Estate Rental Market
  • NRAS housing is no different to the owner occupied neighbour or the open market rented property across the street

    • there is no discrimination in quality or fittings
    • NRAS housing is distributed randomly through existing and new estates
    • Properties that apply for and receive the NRAS Incentive can remain in th scheme for 10 years
  • There is provision for on selling the properties and leaving them in scheme
    • replacing them with similar properties in the same area or simply exiting the Scheme with suitable notice
    • Eligible properties can be a studio apartment right through to a family home
  • NRAS administrators receive ownership schedules annually to ensure that Endorsements are paid to the correct Owner Investors
  • This initiative provides a high degree of income-certainty for investors
  • Investments made are in areas that will achieve capital appreciation and will grow at the same rate as the neighbour who is not in the NRAS Scheme
  • Each NRAS approved dwelling must comply with being close to public transport, schools, hospitals and basic infrastructure

View government website info on NRAS here

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