Access over $100k Tax Free on an Investment Property
NRAS is the Commonwealth Governments National Rental Affordability Scheme (NRAS), a scheme that allows property investors to purchase a new investment property with a ten year term. The properties are available nationally and through various projects including units, townhouses and villas. The properties are no different to the ones next door to you that you would otherwise purchase. The properties range from $300,000 to $650,000 in price making an affordable consideration for an investor to add to their portfolio.
This Government scheme was created to reduce the rent payable by “key workers” within the community, such as police officers, nurses, childcare workers, ambulance service workers, paramedics, teachers, fire-fighters and other critical community members. The policy can also assist other eligible tenants such as single parents, apprentices, students, pensioners and retirees as well as family members including brothers, sisters, children, parents and people with disabilities.
How does it work for the investor?
The investor gets a $9,981 tax-free payment from government per annum (indexed to rental CPI running at about 5.2%) This equates to well over $100,000 in tax free contributions over the ten year period. The yield on a NRAS property is typically cash flow positive from the first year.
Along with a secure 10 year period under the scheme, properties are located in great growth regions and are of high quality providing many advantages to a property investor.
How does it work for the tenant?
NRAS homes are required to be rented to an eligible tenant at a 20% minimum discount to market.
How can I find out more?
To find out more about how NRAS works and if this investment opportunity is for you register here to attend a NRAS webinar.