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NRAS Property

Discussion in 'Where to Buy' started by qonyx_sydney, 3rd Jul, 2015.

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  1. qonyx_sydney

    qonyx_sydney Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    135
    Location:
    Sydney
    Hello,

    I listed to one of the EPI podcasts and it was about NRAS.

    Does anyone have one of these as part of their portfolio.

    What are the pros/cons?

    Regards,
    Q
     
  2. Bargain Hunter

    Bargain Hunter Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    128
    Location:
    Western Sydney
    We have a few.

    Cons
    Often prices marked up by developer.
    Specialty PM's mean higher fees.
    20% under market rent (weekly cashflow).
    Yearly payment may not be made promptly.

    Pros
    Payment 10k (indexed) tax free each year for 10 years. This works well if in lower socioeconomic where this more than makes up for the 20% rental reduction and higher PM fees.
    Not locked in can remove from NRAS at anytime if you choose.
     
  3. trinity168

    trinity168 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    404
    Location:
    Sydney
    Gov't has stopped issueing NRAS certificates so there will only be very few in the market.
    As BH mentioned, yearly payment has not been made promptly. We just got our NRAS payment for last year a month ago.
    With NRAS properties, you do not really have an option of choosing, what I mean is, you get presented with properties with NRAS, and you choose from that listing.

    Hope that helps.