Positive geared NRAS properties

Owners of the unique investment properties under the NRAS are a new group of investors in a win-win scenario.

Through the National Rental Affordability Scheme, the federal and state governments provide affordable rental properties to Australian families. Qualifying freehold properties are new houses, town houses, units or lands located elsewhere in Brisbane and Queensland. The properties rented are open to qualified families at reduced rental rates (less 25% in Queensland) for a significant annual tax credits and ten-year membership of the program.

The investors can acquire the property of their choice with a refundable $1000 deposit in a trust account, and about $9,524 in combined tax credits every year. The tax credits are indexed to the CPI of the rental costs, from the federal and state governments.

Investors can be assured of a ten-year government commitment and the support of its designated management organisations, which supervise the individual and rental payments.

All properties adhere to the highest standards, even the landscaping, driveways, etc. for immediate occupancy. They are built to a standard than to a price. The unique investment provides cash flow positive returns, aside from the capital gains in property value.

Millions of households in Brisbane and Queensland have benefited from the NRAS program. The government has aimed to deliver 50,000 dwellings over four years, nationally.

Some Australian licensed property brokers are participating in NRAS program as “strategic alliance partners.” They would find suitable properties in accordance to the NRAS qualifying requirements. They communicate with individual and group property investors, and are also involved in the processing of contracts through the NRAS system. Member-investors can gain and enjoy the full benefits.

The investment properties sponsored under the NRAS are income positive. The rental income yields plus the tax credit (and allowing for property depreciation), return additional net income versus mortgage repayments. Hence, the investor would seem to be buying the property at no cost, and make capital gains as values increase.