Benefits of investing in a National Rental Affordability Scheme property
With only 50,000 NRAS approved homes Australia wide to be built by the end of 2016 – and a list of prospective tenants who qualify for a rent subsidy far in excess of this figure being over 1.5 million … your investment makes sense.
Brand new Properties for Investors with a *Positive Cash Flow plus a 10 year security!
Estimated $110,000 Tax Credits through secured Government Subsidies providing a Secured Income Stream to you as a property investor over the 10 years.
Over 1 500,000 families in distressed income situations making renting properties or owning properties very difficult for them. The government stepped in and help to subsidise the rent being charged, to financially assist these families live in.
Because of a dire shortage of dwellings, the Federal Government has incentivised investors to invest in homes that have been pre-qualified to meet the stringent requirements of suitable dwelling.
As an investor, the benefit to you is $10,350 per anum tax credit, plus market related rental income and of course capital appreciation.
All these NRAS properties are in and amongst housing estates, developments and neighbourhoods of owner occupied homes. All built to an approved level of quality .. .the only difference is that someone on your behalf has applied to have this property fall under the NRAS.
Your properties are managed on your behalf and include : Letting, Applying Rental Increments, Re-Letting, Advertising, Administration, Insurances etc . What this means to you is that you simply sit back and receive a *5% yield whilst your property appreciates in value.
Being an approved scheme the letting manager sits with a waiting list of approved tenants so vacancies are extremely low to negligible. The letting manager will receive penalties if performance standards and vacancy periods are not complied to.
Finance is available and if correctly structured using existing equity, one could finance up to 100% of the purchase price and still have a positive geared outcome. There is no limit to the amount of NRAS properties you might want to invest in.
By the way, market rents are set by Independent Values appointed by the Government at the beginning of the lease term. The rents are CPI indexed each year at the average Capital City Rent Component of the index (5.4% over the last year) and are independently reviewed every 3 years.
Rentals have experienced and continue to experience high growth and thus your rental income will increase accordingly, for as long as demand outstrips supply, which is forecast to continue way into the future.
The NRAS programme runs for a period of 10 years after which time (even during these 10 years) you are able to sell the property for market value. Being of the same value as the property next door that is owner occupied or the one over that road that is an investment property, your value is the same!
If the property is still within the NRAS programme, an investor might pay a premium because this is a highly desirable investment opportunity. The other opportunity is to opt out of the NRAS and either move in yourself or have it let out to someone out of the NRAS programme
Comments or questions are welcome.