WHAT IS NRAS?

WHAT IS NRAS?:


The National Rental Affordability Scheme, shortened to NRAS was launched in July 2008 by Treasurer Wayne Swann and Housing Minister Tanya Pilbersek.
The program creates a ne class of investment property which is fully freehold owned by the investor, while being approved by the Government Representatives for rental to qualifying individuals or families at a reduced rent (less 20% in Victoria) 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 tat 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.


ADVANTAGES:

If the investor reduces the rent by 20% of the market rent, the government will provide an incentive of $9,524 per annum ($7,143 from Federal and $2,381 from the State governments). This payment increases in line with CPI and in 2011 it is $9,524.
Eligible tenants are determined on an income basis with the service industries such as police, teachers and nurses targeted as potential tenants.
The incentives are TAX FREE.


Benefits of NRAS for Investors

• Improved Rental Yields
• The minimum annual $9,524 National Rental Incentive for each dwelling will improve yields over conventional residential investment properties.
• The national Rental Incentive is income tax free, indexed to the rental component of the Consumer Price Index (CPI) and is complemented by existing taxation arrangements including depreciation.
• Providing a positive difference to the community.

Reduced Risk Profile

• With rents at 20% below market value a large pool of eligible tenants, investors can expect reduced vacancy risk.
• Certainty of contributions from the Federal and Sate governments for a period of 10 years.

Further Benefits

• Government Subsidised Property Investment
• Secured Income Stream (10 Years)
• Cash Flow Positive Investment
• Maintained and Managed
• $90,000 Plus Tax Credits Over 10 Years.


Contact Donny Green, Manager-Sales and Investor Relations for further information regarding NRAS and the properties we have for sale under the NRAS scheme..