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Michael | 26 Apr 2013, 10:13 AM Agree 0
Hi
Has anyone had experience with the investment property scheme known as national rental assistance scheme?
Thanks
  • Mark Coburn | 26 Apr 2013, 08:15 PM Agree 0
    It is not all that it seems. Don't stop, keep looking. The sellers are the ones that make the money and the buyers carry all the risk in the long term.
    Mark Coburn
    SteppingStoneWealth.com.au
  • Paul | 06 May 2013, 06:43 PM Agree 0
    Could you please elaborate on the risks for the buyer please Mark, as I have been looking at purchasing a NRAS property I'm a first time buyer of investment property, so I'm not aware of the pitfalss.
    Regards, Paul
  • John Manaras | 15 May 2013, 02:51 PM Agree 0
    I purchased a block of land in Palmerston Northern Territory off the plan in June 2012, Im now building a 4br house with an ajoining flat, tennant ready in September 2013. I payed $590,000 its now valued at $700,000 plus, and it has a double NRAS on it. So without NRAS I would only recieve around $900 p/w. But with Nras I will be recieving $1160 Aprox.
    And its because of NRAS I came accross this 10% yeilding property, I think NRAS is amazing best investment we ever made.
  • John | 23 May 2013, 02:08 PM Agree 0
    Hi Paul. With NRAS properties the only negative people see is they can not choose exactly where the property is located. You can choose a apartment inner city or a home in the outer suburbs. There are many to choose from. These properties are positive cash flow. If you would like more information I am happy to assist. Regards John
  • Eos Property | 28 May 2013, 08:52 PM Agree 0
    Hi Michael,

    NRAS property is often sold on its tax advantages. In my opinion tax advantages should be the icing on the cake and not the reason for investing. At best, in out tax system, you'll get back 46c/$ spent.

    Now I know NRAS is slightly different to your standard negatively geared property but any property you select needs to stand up as a 'good investment' in its own right. I have seen NRAS property that is expensive for the local area and I suspect valuations on some NRAS property may be problematic.

    On top of this some marketing fees can be quite high and those selling some NRAS property may be on very large commissions. We were asked to sell some NRAS property and were offered 8% commission.

    We declined for a number of reasons - the size of the fee being one of them.
  • Michael B. | 13 Jun 2013, 12:34 PM Agree 0
    Hi Paul, I studied NRAS for 2 years before I bought my first one in Townsville. There is some good n bad Nras. Bad nras is overpriced and you dont have control over them. The one I bought is you can choose your own tenant and can sell if your situation changes for some reason. Other nras property is they put their own tenants without your consent, & you are locked in for ten years. If you have further questions ring me at 0433444956. Goodluck in your investing journey.
  • Eos Property | 17 Jun 2013, 06:09 PM Agree 0
    Hi Michael,

    Been a while since I played in the NRAS pond but I recall that investors have the option of opting out of NRAS and there is no need to remain a NRAS property for the 10 years. I understand this option is available once per year.

    As I said been awhile since I played in the NRAS pond but..........................
  • Kim Duffey | 04 Jul 2013, 01:56 PM Agree 0
    I personally have had nothing but positive experience re: NRAS properties.

    My brother and I have purchased 15 NRAS properties and has generated us an additional positive cash flow of over $140,000 each year (tax-free). These properties are located in areas of a strong infrastructure, government spending and has strong potentials for capital growth. The NRAS allocation needs to be perceived as a bonus and the property needs to stack up on its own right. However if you have the ability to purchase a property that provides strong credentials for a good solid investment property and receive up to $120,000 from the State and Federal Government over the next 10 years tax -free ( then why not!).

    With the 20-25% reduction in market rent to my tenants, we have had the ability to be choosey with our tenants, and all inspection reports have been fantastic - as we are giving them a significant rent reduction. Ph:(02) 9531 8730
  • Con Argiros | 08 Aug 2013, 08:47 AM Agree 0
    Hi Kim, you & your brother are doing well, what is the secret ? where are your properties located ? which companies are you dealing with ? When you say the property needs to stack up without NRAS do you also mean financially ? Your help would be much appreciated !!
    w) 02 8668 8028
  • Tracey D | 31 Aug 2013, 11:26 AM Agree 0
    With NRAS, at some stage if I have no job, will I still get the incentive of $10,000 a year?
  • Vinay | 04 Sep 2013, 06:27 AM Agree 0
    Hi is it possible to tell me how you are choosing your criteria?
  • Andrew | 09 Sep 2013, 08:01 PM Agree 0
    Hi I am looking at purchasing an NRAS property. I do my own tax with a taxable income (combined of with Spouse of 60,000/yr.) We pay around $4000 in tax. How does the tax offset work? I have not dealt with this before? Any help would be appreciated. thanks.
  • Graeme | 10 Sep 2013, 03:03 PM Agree 0
    Hi Andrew (and others wishing to establish the facts on NRAS)
    My clients have been investing in NRAS properties since 2009 and swear by the scheme. Of course there are rules to follow, with or without NRAS and these include not investing in the wrong location and not paying too much. The major drawback for NRAS properties was having a 10 year leaseback, but this is no longer required. And many financiers will lend on the same basis as non-NRAS properties.
    I believe in firstly educating my clients so they know what it is all about, so they can make an informed decision, rather than listen to myths and misinformation disseminated by those with a financial reason to do this.
    To this end, I have available a free information kit that you can request by going to www.NRASQueensland.net.au or email me at shiels@bigpond.net.au
    I also have NRAS properties available from the Gold Coast to Townsville , including right across greater-Brisbane.
  • Ultan | 22 Dec 2013, 11:50 AM Agree 0
    Yes you will still receive the NRAS tax credit in the event you become unemployed. The NRAS Tax Credit is not paid in the same way a negative gearing refund is paid, so it does not rely on you having income with which to offset losses associated with owning/operating an investment property.

    The NRAS credit is paid via two components. 1. The Federal Govt funds 75% of the NRAS tax credit via a Refundable Tax Offset. This is very different to a Tax Offset . It is payable whether you have an assessable taxable income or not.

    2. The State Govt funds 25% of the NRAS tax credit via a Non Assessable Non Exempt ( NANE) cash payment.

    Both components are 100% tax free.

    http://www.ato.gov.au/General/Property/In-detail/Rental-affordability-scheme/National-rental-affordability-scheme---refundable-tax-offset-and-other-taxation-issues/

  • C Kent | 12 Feb 2014, 06:02 PM Agree 0
    I was looking at an NRAS property in Nerangba, Qld but just failed to satisy the LMI's. The company that sourced the property has since found a house and land package in Mount Gambier SA for considerably less $$. which we should be able to act on. I have researched NRAS considerably and so far I am comfortable with it but a little unsure about Mount Gambier, it appears to be quite dormant with very little growth???
  • Jerry Parker | 18 Feb 2014, 09:07 PM Agree 0
    [This comment has been removed: Incorrect Claim]
  • Adrian Jenkins | 01 Apr 2014, 08:04 PM Agree 0
    Michael, have a look at nrasaustralia,com.au

    The insights to NRAS are quite comprehensive and the property selection there is as wide as any and wider than most.
  • Ian | 13 Jul 2014, 08:21 AM Agree 0
    Can anyone elaborate on which parts of NRAS were cancelled in the federal budget? Do all existing NRAS properties retain the tax credit? Ie if you purchase an existing NRAS property, does the new owner still retain the tax credit after settlement?

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