NRAS 2.0?

https://www.smh.com.au/politics/fed...boom-to-bring-down-rents-20181215-p50mi9.html

 

The Liberals, Tony Abbott Kevin Andrews in particular should get more grief for butchering nras 1

 

It's less than NRAS 1.0, but I think that may have only run for 10 years instead of 15, right?
I'm looking to develop in the next five years or so. Looks like I might try and push those plans forward a bit and will now go for 4 townhouses instead of 3.
I'm assuming that you wouldn't be able to self manage?

 

FYI you may not be eligible.

https://www.alp.org.au/media/1506/181216_affordable_housing_for_renters_fact_sheet.pdf

 

"..the program will provide annual incentives of $8,500 per year for 15 years for newly constructed properties that are owned or managed by a registered community housing provider."
I imagine it will probably end up working similar to the original NRAS for private landlords.

 

Ahh I see, so you think it could be managed by a provider who then distribute the incentive (after clipping a fee) to private landlords?

 

I assume so, will have to wait for some more detail I guess.

 

"The incentive will be indexed annually to the rent component of the CPI."

If it starts off at $8500 and lets assume a modest increase of 1.5% annually, after 15 years, you'd be looking at about $142k. Not bad at all.

 

Remember the current NRAS started at $8000

 

‘Individual private investors will not be eligible to receive the subsidy, as the program is targeted at creating a sustainable, integrated approach to creating affordable housing for Australian families.’ According to the ALP article linked above...

 

I'm hoping this means that they wont be able to be self managed. Instead of not being able to participate at all.

 

I was never involved in the original NRAS, but I seem to remember hearing that that income was tax free. Is that right or just a figment of my imagination?

Also, if Labor make CGT and negative gearing changes and I develop on existing properties, would the existing rules still be grandfathered or would it change due to the work?

 

Yes the government subsidy is tax free. I can't wait to get into NRAS 2.0.

I get the impression that the grandfathering will be on existing properties that are owned.

 

The press release gives a strong impression that it will work very similarly to the original NRAS. Provided the good guys like @euro73 get involved rather than the sharks, it will work well for investors.

 

If by Develop you mean build new properties, then Negative gearing/CGT will still be accessible to you.

 

Thanks guys. Fingers crossed on the details then and hope that I'll be eligible to build them, as long as I get the registered provider to manage it.