Overview of NRAS
Buying an NRAS approved property is like purchasing any other investment property.
When the Government approves a dwelling under the NRAS scheme, then the investor has a choice. If the investor reduces the market rent by 20% to the eligible tenant, then the investor will receive from the government a minimum of $10,660 (*as long as the property is kept compliant under the scheme) per year tax free, for 10 years. Rental CPI indexed.
Background of NRAS
The NRAS scheme was launched for the purpose of providing assistance and funding to increase the supply of affordable rental dwellings, reduces rental costs to, low to mid income earners and to encourage investment on a large scale to provide more affordable housing. The scheme was introduced by the Liberals and passed by Labor in July 2008. The shortage of houses across Australia in 2008 has been estimated at 85,000 and exceeding 200,000 by 2013.
The scheme is expected to deliver up to 50,000 affordable rental homes Australia wide by 2016.
Eligible tenants are determined on an income basis with service industries such as police, teachers and nurses and social care workers.
The incentives are tax free (as long as the property is kept compliant under the scheme). The NRAS scheme is funded by the Federal and State Government but operated privately.
Benefits of NRAS for Investors
- Improved rental yields
- The Investor has title
- There are no caveats or contracts with the consortiums who our team work with
- We educate investors and ensure you have the best experience along the whole journey
- The minimum annual $10,660 (*as long as the property is kept compliant under the scheme) National Rental Incentive for each rental dwelling will improve rental yields over conventional residential investment properties
- The NRAS 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
- We work for you the with the right consortiums for our investors
- Our investors choose their own tenant