Breaking a NRAS property contract

Hi, I'm after some advice on a NRAS property I have purchased off the plan. Could anyone tell me what the penalty is for not abiding by the contract, for example wanting to live in the house instead of locking it into a 10 year lease.
Any advice or links to a website with the information would be appreciated.

 

Yes & Linky

 

Yes you can you just wont be paid any of the incentive

 

The first thing I would say is that you arent "locked in" to any sort of lease for 10 years, or 10 minutes. NRAS is a tax credit. In order to receive the tax credit you are required to meet the requirements of the scheme. That includes making the property available for rent to an income tested /eligible tenant , and at a minimum 20% discount to market rent. If you dont do either of those things the dwelling will be considered non compliant for the purposes of the scheme and the NRAS tax credits will not be paid to you.

Where's the property? Who is the NRAS provider?

 

Yes you can but do the numbers to understand what you are letting go.

Ask the guys selling the property to help you.

 

Thank you so much for the replies, there is no NRAS provider listed on the contract, it simply states I am to rent the property for 20% less than market value for a period of no less than 10 years.
The property is a town house in western Sydney and there is roughly 15 properties in the complex, when I went to purchase the only 2 left were the NRAS properties. The real estate agent explained that the builder gets tax breaks for making so many properties available for NRAS.
So I'm just surprised you can actually not abide by the contract and not rent the property through NRAS.

 

You forego the benefits that come from the upfront fee paid which attaches to the specific title.

• Loss of state incentive
• Loss of Commonwealth incentive
• Recommence claiming 100% of rental deductions

Your specific NRAS terms need to be considered as there could be other costs such as a provider annual fee etc.

Perhaps you misunderstand what the agent said. Is yours a NRAS property ? Not all property in a complex has to be. The builder must pay a large upfront fee to apply to be a NRAS property. and that can be one or more units within a building complex. The builder gets no incentive and may apply as they consider it appeals to NRAS investors who seek a NRAS property...The builder (original owner) actually pays a fee to join.