ABC 7.30 running a story on NRAS now

I am quite interested to hear other NRAS investor to share their experiences with different managing agents.

 

12.5% commission rate + 2 weeks letting fees, are they outlined in the agency contract?

Suffer from what? delayed credits? property not managed properly?

If that's part of the deal, then I can smell something fishy.

 

Where cam we find that?

 

Transfer an Allocation to Another Approved Participant – Application Form | Department of Social Services, Australian Government

 

Yep ....

It will be interesting what other problems people have with NRAS . I know in one area we bought we were warned about a local NRAS development . When people couldn't get a private rental due to past problems guess where were told they were renting .

Cliff

 

Just reviewing payments for 2015/16...it appears 31,540 of the 31,889 active NRAS allocations have had their payments completed. So it's difficult to understand why Ethan , who have @ 2239 allocations nationally, havent paid people.

 

You are implying that NRAS tenants aren't subject to the same scrutiny as non NRAS tenants. You are implying NRAS tenants are bottom of the barrel types of human beings, and that bad tenant behaviour should be expected.

NRAS is private rental in the overwhelming majority of cases. Aside from a small number of Community Housing Providers - who control less than 20% of the NRAS allocations - the majority of NRAS consortiums are private sector.

NRAS has been operating since 2008/9. That's over 8 years. Plenty of time for patterns of these supposed problems and problem tenants that you have eluded to, to have well and truly evolved/shown themselves. So Im interested to know...where is your evidence ?

I'm more than a little confident I know more about this subject than the average bear, so I'm happy to have intelligent , factual conversations about NRAS. Are you?

Amongst the NRAS sales I have been directly involved with (over 350 in 4 years) , there have been 3 or 4 problem tenants across those 4 years. That equates to about a 1% problem ratio - or a 1 per annum ratio if you prefer. Facts. Now call me crazy, but I think I'd prefer to rely on that sort of evidence than .

I would wager than on the whole, over a pretty reasonable 4 year sample period and a not insignificant 350+ property sample , vacancy rates and tenant behaviour - at least on the dwellings I can directly comment on - has been equal to if not superior to private sector equivalents .



It's better to be guided by facts than fiction

 

We've got three of them. They run fine & only have had one issue with a scummy tenant, but the PM looked after it all & got it sorted with little down time.

One of ours is Ethan. They were a tad slower than the others, but haven't had any issues. I think the people in the article were 'sold' the properties as an investment, but they have no experience in IP's and the expenses involved, and thought it would be a get rich quick scheme and have little to no buffer in place to see them through.

 

Interested to understand how investors do DD into the PMs in NRAS situations, particularly when there's a limited selection and possibly harder to move between PMs for any particular NRAS property.

 

I have two NRAS properties (2 and 3 years) and have had no issues to date. Both properties were tenanted within days of settlement and I had the choice of multiple tenants - with good rental and employment histories. Our original tenants are still in both properties and we have a great agent (who we chose) that provides quarterly inspections incl photos and manages the NRAS compliance at a reasonable price.

The NRAS incentives were very late last year but we budgeted for that so no concerns. 10k cashflow positive each and despite the general apartment oversupply issues also achieved some capital growth.

 

I am planning to buy NRAS property in Ballarat through Ethan? Any recommendations plz.

Which bank / broker would you recommend for home loan.

 

Many banks will lend against Ethan NRAS, up to 90% LVR in most instances ( 80% LVR in a small number of instances) so you have several options for the loan....

 

Is that not from 1 Approved Participant to another Approved Participant

 

Correct. Transfer an allocation to another approved participant - ie another "consortium"

 

So the Approved Participant or agent of approved participant can only transfer not the actual investor

 

The approved participant needs to send the paperwork.

 

So the approved participant has to agree to transfer the allocation they have the rights to and are receiving $1,000 per year for compliance while they are forcing the investor to have the property managed with a company related to the approved participant in order to receive the RTO to another unrelated approved participant. GOOD LUCK WITH THAT

 

You're obviously far more knowledgeable on the subject than I am @Matt G

 

Just pointing out that this is occurring within this scheme. Some participants are great some are unscrupulous. The punters need to know and they need to be exposed.

 

All the NRAS properties we manage have had mandatory valuers through recently and instructed to reduce rents by $5 per week on each. Doesn't really match our normal properties where we're raising or at least keeping steady on the rents.