Highgate WA: 3 apartments

There wasn't really a cut off amount but there is income limits and a percentage of income that NRAS tenants can have. It meant that for the 3 bedroom rent of maybe $650pw that it would need to be 2 working parents and some kids or 3 singles. It reduced the amount of 'free' money from the govt and it reduced the tenant pool of people that would fit the criteria.

Whilst it wasn't a definitive no, it was enough for me not to take the risk of applying for a transfer allocation as these are paid transfers. Originally under Round 5 I was applying for all of the apartments.

 

It is And powerful
The sweet spot for NRAS is one bedroom apartments in affordable areas which rent for maybe $300pw. You then rent it for $240pw and 'lose' $3120 but gain back more of the $10,900 - you gain $7780pa.
Unfortunately when I applied back in December I didn't have any other 1 beds in my projects but I do now. If Round 5 ever gets back up and running I will be applying for more.

 

The other bonus is that having NRAS development opens up one of the discretion policies at City of Vincent. You can have an extra storey above the maximum height if

AND

 

That's good cashflow, strategy you will use moving forward with other projects

I expect the negative is having to deal with government BS, red tape.

MTR

 

Im doing a dev in kelmscott 12 apartments 8x 2.2.1 and 4x 1.1.1

Nras signed the four 1.1.1 and one 2.2.1 effective as of July 2016.

First time I've had this approved so we will see how it goes.

Another benefit would be people renting under nras don't want to get blsck listed as bad tenants as it will be really difficult for them to find another rental hence looking after your property to a decent level

 

@Westminster - Was there an application fee that you had to pay that was non refundable?

 

You'll also see some neg gearing coming back from the ATO for the $5200 in reduced rental income. If they are held within SMSF, that will equate to 15% of the $5200, and dont forget the additional funds provided by the NRAS credit of $10,917 are completely tax free

 

For this there was as these allocations belonged to someone else effectively I was paying to have them transferred to me. Under normal NRAS Rounds there is no application fee so it's much less stress and you can then apply for as many as you'd like.

 

Tax free - one of my least favourite words made my favourite by adding 'free'
Under SMSF it's only 15% but as I mentioned I didn't have any other projects I could do this with.
I do have the option later on to transfer this to another one bedroom dwelling in the same postcode if I like.

 

Yup BS, bureacracy and red tape. It's already taken 8mths to have them approved for transfer to me but it's worth it. Thankfully I don't have finished product waiting for this like some others did.

Very nice @OSAN Properties ! I agree that they would be more likely to be long term tenants to keep the 20% discount.
Has your project started construction yet?

 

@Westminster agree, sorting out BA

 

@OSAN Properties

Could I ask what the construction cost is per sqm? and what specs at this rate?

 

@stumpie Hi mate,

construction costs 1900per sqm, moderate finished (over head cupboads, granite benchtops, high ceilings, split systems ac). Using hebel, stud framing and gyprock

 

@OSAN Properties - thanks for the info. That is a very reasonable cost for apartments. Does this include siteworks or is it extra?

 

Hopefully they will eventually get their act together, as you mention worth it for cash flow

MTR

 

@stumpie
On average build cost using hebel is about 30% cheaper.

The site has clay so short answer is no. Although the if it was you basic S class then it would be included.

Bringing in services are on top of that

 

Is it any faster building with hebel? Or is the time frame the same as traditional bricks?

 

Hey Myf what's the progress on this little ripper?

 

A fair bit of toing and froing but it was lodged in December. It took awhile for me to be happy with the 3rd storey and elevation.

Initially City of Vincent said it could go in as ammendment to DA but then they flipped at last minute and said it needed to have a new DA application.

 

The incompetence of councils (and government departments in general) never ceases to amaze me. They have no accountability or skin in the game so they just don’t care whatsoever.

If people knew what goes on in hospitals.....man the scandals that would come from that would be mind blowing...