Nras ljg jv property summary
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The National Rental Affordability Scheme (NRAS) offers benefits for property investors including a $9,120+ annual tax credit for 10 years. This presents an opportunity to positively gear an investment property with guaranteed tenants and income. Demand for NRAS properties has been high, with many investors reserving multiple homes. The program aims to increase affordable rental housing options across Australia.
Nras ljg jv property summary
- 1. AMAZING RECORD BREAKING RESPONSE TO NRAS PROPERTY OFFER! The Governments National Rental Affordability Scheme (NRAS)* provides the ' following benefits for investor owners of these brand new properties: • A tax credit of $9,120+ per year, PLUS CPI indexation for 10 years • Tax Credits - NOT TAXED • Favourable Rental Terms to owners (10 year secured income stream) • Housing Managers appointed by NRAS are responsible for tenancy and property management and hold the head lease. This is a brilliant property investment opportunity combining positive gearing with tax credits, with no concerns about occupancy levels and tenants unpaid rents. ' ' Correctly structured finance is always important and in todays low interest rate environment you have a bricks and mortar asset bought for you and the capital asset growth that could be double the purchase price in 10 years. We have had hundreds of email enquiries and phone calls from all over Australia about investment in the Government' s NRAS properties in Queensland. An AVERAGE of two properties are being reserved for every person submitting an expression of interest and securing finance, with some reserving even more. NO CLUSTERS OF NRAS HOMES NRAS officials have strict guidelines for the number of NRAS rental homes in suburbs and housing developments that prevents any rental clusters from occurring and the devaluing that occurs with "Housing Commission" areas.
- 2. POSITIVE GEARING A REALITY Everyone has been astounded by the positive gearing that the $8,000 tax credit provides which not only allows them to buy one or two NRAS properties for just about nothing, but also to pay off their current home mortgage quicker. QUESTIONS & ANSWERS Some of the common questions we have now answered hundreds of times and that you may still not have asked are: Q. CAN I BUY MORE THAN ONE PROPERTY? A. YES. There is no limit to the number of NRAS properties that can be bought, other than your ability to obtain finance. Q. HOW MANY NRAS PROPERTIES ARE AVAILABLE? A. The Federal Government plans to have 50,000 NRAS homes Australia-wide built by the end of 2012. However, the process of gaining approval for each home and the allocation of these to investors is time consuming and means that relatively few properties are currently available. These are being allocated on a first come basis to investors with pre- approved finance or cash funds. Q. WHAT IS " NRAS"? A. "NRAS" is the "National Rental Affordability Scheme" which is an initiative of the Federal Government and is jointly funded and administered with the States. It is designed to provide quality homes for the large number of Australian families unable to buy their own homes or to afford the full cost of market rents. In essence
- 3. the Government is using indexed "Tax Credits" starting at $8,000 per property per year to pay back investors who agree to accept rents at 25% lower than normal market rents. Q. WHAT ARE " TAX CREDITS" A. A tax credit of $8,000 per year is given to NRAS investors for each property they buy. So if an investor is currently paying $18,000 in income tax per year, the amount payable will reduce by $8,000 to $10,000. The credit can be applied from the start of a year so that the tax payable per month is lower, rather than waiting for a rebate at the end of the financial year. Your Accountant or tax specialist will be able to give you the best information for your circumstances. Q. WHAT IS " CASH FLOW POSITIVE"? A. "CASH FLOW POSITIVE" in investment terms means that the combination of income (rents), depreciation and tax advantages, including the $8,000 tax credit received by the investor are greater than the cost of buying (interest on mortgage) and maintaining the investment (NRAS property). For many PAYE and PAYG taxpayers their investment in one or two NRAS properties, with an interest only loan, is indeed actually or very nearly cash flow positive. Each case is different and you should consult your Accountant or tax specialist. SUMMARY
- 4. The NRAS property sales program is going extremely well and putting pressure on the supply of approved properties. If you are considering investing in property as an alternative to shares or superannuation, then I consider that the NRAS program would be hard to beat, with Quality Properties; Tax Credits; Positive Cash Flow for many investors; Rent / renters organised for you; plus long term capital growth.