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2nd Hand NRAS

Discussion in 'The Buying & Selling Process' started by smator, 24th Sep, 2016.

  1. smator

    smator Well-Known Member

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    Hey guys

    Looking into buying a second hand NRAS now that all the opportunities to buy new ones are gone.

    What happens if I purchase one mid way through the year to the government incentives? Who is entitled to them, is it person who owns at the end of financial year?

    Thanks!
     
  2. ashish1137

    ashish1137 Well-Known Member

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    It should be pro rated, I think. @euro73 is the best source of information here.

    Regards
     
  3. euro73

    euro73 Well-Known Member Business Member

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    There are still a small number of new ones available in Merrylands and Baulkham Hills and a few in various locations in metro Perth. You'd be receiving @ 9 .5 years worth of eligibility if you settled by Xmas. PM me if you want to know specifics
     
    Last edited: 24th Sep, 2016
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  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    Yep pro rated, for the ones I manage the consortium asks me for settlement dates and then updates every month on whether owner, tenant and rent are the same.
     
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  5. euro73

    euro73 Well-Known Member Business Member

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    Pro rata'd
     
  6. Mac Fields

    Mac Fields Well-Known Member

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    So it sounds that it's not like the government solar schemes that were only available to the original owner, which is good for the scheme going forward.
     
  7. euro73

    euro73 Well-Known Member Business Member

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    NRAS offers a total of 10 years of tax credit eligibility, whether that's spread across the ownership lifecycle of 1 owner or 2 owners or 3 owners or 20 owners. The legal owner is entitled to participate their property in scheme and claim the proportional amount of eligibility for the period they own the property. If thats 6 months, thats 6 months. if they sell it after 6 months, the new owner can choose to claim the remaining 9 years and 6 months, or they can choose not to. If they wish to participate, they simply have to maintain the property in the NRAS and meet the criteria , and they will get paid proportionally for the period they owned it in the first year, and full years thereafter. If it's 7 years and 23 days, its 7 years and 23 days. if it's 2 years and 11 days, its 2 years and 11 days, etc etc etc etc etc etc etc
     
  8. euro73

    euro73 Well-Known Member Business Member

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    some new ones still available :) Although the 10 year clock has commenced on all NRAS on July 1, 2016. There are no exceptions to this. July 1 2016 is THE commencement date for all the remaining Round 4 NRAS ( the last round ever) even those which havent settled yet - yes there are still a few hundred under construction nationally, due to finish late 2016-mid 2017 . So even if you bought one today and settled tomorrow, you'd be looking at 10 years minus July, August and September. ie @ 9 years 9 months . That's still better than a 2nd hander with 5 or 6 years remaining. Remember, the NRAS credit will be much closer to 14 or 15K in 5 or 6 years time , so you wouldnt be giving up 11K by purchasing 2nd hand thats 4 or 5 years old. You'd be giving up 4 or 5 years of 14K-15K or more.