NRAS - National Rental Affordability Scheme
NRAS - A Brilliant Investment Opportunity!
Brisbane Property Brokers is able to offer investors unique freehold investment properties in the NRAS Scheme. The National Rental Affordability Scheme or NRAS as it is known, is providing affordable rental properties to Australian families. Under NRAS, the unique investment provides cash flow positive returns for the majority of investors together with the capital gains in property value historically associated with NRAS property investments.
The National Rental Affordability Scheme, shortened to NRAS was launched in July 2008 by Treasurer Wayne Swann and Housing Minister Tanya Plibersek. See letter to prospective investors below. The 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 (less 25% in Queensland) 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.
NEW HOUSES, TOWN HOUSES & UNITS
Qualifying properties range from new house and land packages to new townhouses and units which are located throughout Brisbane and in regional Queensland. All properties are required to be built to the highest standards including all mod cons and include landscaping, driveways etc, for immediate accommodation. They are built up to a standard, rather than down to a “price” and as such represent a good long term investment.
FEDERAL & STATE GOVERNMENT SUPPORT WORTH $9,524 PER YEAR
A combination of Tax credits of $7,143 from the Federal Government and a tax free cheque of $2,381 from the Queensland Government, per house, are paid annually and indexed to the CPI of rental costs. There was a recent adjustment as a result of CPI increases which increased the credit from $9,140 to $9,524.
TEN YEAR GOVERNMENT COMMITMENT
Investors purchasing NRAS properties gain the benefit of a ten year Government commitment to the program and the support of head leasing arrangements with Government appointed management organisations, who are responsible for the individual tenants and rental payments.
BRISBANE PROPERTY BROKERS ROLE
Brisbane Property Brokers are one of the few licensed Real Estate Agents appointed as “Strategic Alliance Partners” by the Government appointed Queensland Managers of the NRAS program.
Our role is the location of suitable properties meeting the NRAS qualifying requirements, Queensland wide, linking with individual and group property investors and the processing of contracts through the NRAS system to ensure investors gain the full benefits available to them.
We have assembled a large portfolio of over 1,700 Queensland properties in Brisbane, Gold and Sunshine Coasts and regional Queensland in areas designated by the Government for NRAS allocation. This gives prospective investors a wide choice of both property types and locations, depending on their personal financial objectives.
Investors can secure the property / properties of their choice with a refundable $1,000 deposit which is held in a trust account.
FINANCE AVAILABILITY / POSITIVE GEARING
For many investors particularly those on high incomes investment in one, two or more NRAS properties is income positive in that the rental income earned plus the tax credit and allowing for property depreciation, the investment actually returns additional net income versus mortgage repayments. This means that the investor is in effect buying the property at no cost to themselves and also making capital gains as values increase.