National Rental Affordability Scheme (NRAS)
The National Rental Affordability Scheme (NRAS) provides a unique opportunity for property investors.
The NRAS scheme is an Australian Government initiative, designed to stimulate the supply of 50,000 new affordable rental dwellings. Under the scheme, eligible tenants are offered rental at 20% below the prevailing market rent for a similar property.
The incentive for investors is that the government pays an annual tax free incentive (currently $9,524 per dwelling) for any properties approved under the scheme. The payments are guaranteed for a term of 10 years.
This means effectively your N-RAS investment property may be positively geared, with the rental income (plus incentives) exceeding your required loan repayments.
Benefits of investing in a NRAS Property
- taxation free incentives guaranteed by the government for 10 years
- depreciation allowances on new buildings
- investors can pick their own tenants, as long as they do not exceed certain income thresholds
- NRAS properties are brand new turn key developments
- opportunity for a postively geared investment property
The National Rental Affordability Scheme is a win win situation for both property investors and tenants.
The NRAS incentive is not available on standard residential properties. All NRAS properties must first be approved under the scheme.
Rigorous selection criteria are applied by the Australian Government to the location, design and amenity of NRAS dwellings, all of which must also comply with State, Territory and Local Government planning and building codes and requirements.
NRAS is not a public housing program, it is a tax incentive to induce more private investment in the lower price range of the residential construction market.
Contact us today for more NRAS information, and properties available in Perth WA.
Or you can send us an email using the form above.
The above information is general information only and not intended to be advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice or embarking on any strategy you should seek independent advice from a licensed financial planner who will consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.
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National Rental Affordability Scheme (NRAS) - Investors
