Investment Tools » NRAS

What is NRAS?

Here is some information below from the Queensland Communities website:

 “The National Rental Affordability Scheme is an Australian Government initiative and is financially supported by the Queensland Government. The scheme aims to stimulate the construction of 50,000 affordable, high quality rental dwellings across Australia. Up to 40,000 will be supported up to June 2014, with a further 10,000 dwellings to be supported in 2015-16.

NRAS is not a social housing program. It offers an annual tax-free incentive to investors to purchase new affordable homes and rent these at 20% below market rents to low and moderate income households.

The annual income-tax free incentive is currently $9,981 per dwelling and is indexed annually to the rental component of the CPI. The incentive comprises:

the Australian Government contribution of $7,486 per year for 10 years as a refundable tax offset or payment, and
the Queensland Government contribution of $2,495 per dwelling per year for 10 years as a cash payment for dwellings in Queensland.

As a condition of receiving this support, the Queensland Government requires dwellings it funds under the Scheme to be rented to eligible applicants registered with the Department of Housing and Public Works. The Australian Government has defined income eligibility requirements for prospective tenants of the National Rental Affordability Scheme, which are reflected in the Queensland eligibility criteria for NRAS clients.” (3rd July 2013)

Is an NRAS property really a good investment strategy?

Buying an NRAS property can be hugely rewarding both from a financial and emotional perspective. Depending on your financial situation often an NRAS property can be positively geared giving you another income stream. Emotionally you may feel a sense of gratification that you have provided a place for someone to call home that may not have necessarily been able to afford a high quality rental property otherwise.

How we can help you

Your property investment strategy should be focused on the long-term to build a valuable asset base from which you can receive a reasonable rental income and realise possible capital gains for retirement.

Whatever property investment strategy you are considering, Landsdale Property Group can help you:

1. Consider your current financial situation and goals.
2. Gain knowledge around property investment options. 
3. Better understand the implications of the property investment process.
4. Support and guide you through finding and purchasing the right property to suit your financial situation and goals.  
5. Realise the benefits of your property investment purchase.