We'll Contact You

*

*

We'll contact you as soon as possible.   Send

Marcelle and Shane, the co-founders of NPAG, are driven by making a positive difference in their clients lives by assisting them to invest with confidence. NPAG was born over a coffee, after Marcelle and Shane realised that they were both EXTREMELY PASSIONATE about property investment and, that between them they had a wealth of knowledge, both being seasoned property investors. They decided that their goal was to create 10,000 property millionaires this decade. Let them help you be one!

What is NRAS?

The National Rental Affordability Scheme (NRAS) is a long term commitment by the Australian Government to investors prepared to build affordable rental housing.

NRAS seeks to address the shortage of affordable rental accommodation by offering tax-free financial incentives to the business sector and not for profit housing providers to build and rent affordable dwellings. Such incentives can then pass through to individual property investors provided a number of audit conditions are met.

Through the provision of the tax incentive, NRAS will:

  • Increase the supply of new affordable rental housing,
  • Reduce rental costs for moderate income households, and
  • Encourage large scale investment in, and innovative management of, affordable housing.

The incentive, payable either as a grant or refundable tax offset, is paid annually for up to 10 years. The investor is required to rent eligible dwellings to approved tenants at 20% below normal market rent. The NRAS Incentive is currently $10,660 (75% Federal and 25% State Govt funded) per dwelling per annum, and is indexed each year to the rental component of the CPI.

 

Are NRAS properties a good investment?

The answer to this question is – yes, and no. It depends on the actual property on which the NRAS incentive is made available.

The core principles we follow when selecting an NRAS property that best matches your investment outcomes, are the same as those we use to locate a conventional investment property. That is, we first investigate the location and then the suitability of the actual property to determine the likely hood of strong capital growth and sound cash flow.

 

Strong capital growth and positive cash flow, is that possible?

Yes it is. A well located property with an NRAS incentive can provide significant cash flow benefits.

But, a word of caution. Investing in NRAS properties is more complex that investing in conventional properties and there are many details an investor needs to be aware of.

First and foremost, it is important to understand NRAS from the beginning. NRAS incentives are applied for through a tender process, by Approved Participants (also known as Housing Consortiums). These groups have been appointed by the government agency, FAHCSIA. Property developers and builders pay these Approved Participants a fee to secure them a given number of NRAS incentives in a development, from FAHCSIA and the relevant state and federal Housing Authorities. This tender process is rigorous and, incentives are allocated to properties where both the state and federal departments believe there is a need for affordable housing.

Approved Participants include groups such as QAHC, Questus, Aspire, National Housing Group, Ethan Affordable Housing, UAHA and others (a full list is available on the FAHCSIA NRAS web site). Just as there are a number of Approved Participants, there is a variety of structures and business models employed by the Participants which carry differing costs associated with the establishment of the incentive, ongoing property management and administration.

If you are considering investing in NRAS property it is important that you seek the advice of a professional group who understands the various models and the impact this may have on the viability of the investment. At National Property Advisory Group we have taken the time to fully understand the various models available, and can assist you to make an informed decision. Contact us today to learn more.

Click here for more information in relation to the scheme.

 

Properties