NRAS

Maybe I am blind........could not find Adam's comments.. can you please cut and put in main thread?

 

As an investor, I don't like NRAS at all. Its over priced. There's too many middlemen.

As a Property Manager I like it. There's extra paperwork involved with income verification every year for renewing, but all the dwellings are new (less maintenance) and all the tenants are long term.

 

No its because the LNP hate people on low incomes. There were moves to extend it but I believe the Abbott government finished it up June 30, 2016. Others will be able to elaborate.

 

Ah I see.

So I guess in this case, it would be better to get the last remaining NRAS property before it is all gone for good.

 

Adam "We all get you don’t like NRAS but if you consider yourself to be a professional property investor then stop printing junk, do a little research and try to appear like you have a clue what you are talking about and are giving a rational and reasoned viewpoint." Got a good laugh out of the replys

 

If I could borrow more, I would be buying more. But there will be some for sale next year when then are completed. You'll only get 9 years of incentive, but it's still worth it. As others say, pick properties that stand up to vals. And think about the property without NRAS. If it is a good deal with full market rent and without the incentive, then it should be considered.

One of mine I bought 2nd hand with 9 years left and I would say its my best NRAS property.

 

@LibGS do you mean you can buy Off The Plan NRAS property hence you still get the maximum 9 years of fully subsidized rent from the government ?

Which area or suburb was that if you don't mind sharing ?

My friend who bought NRAS in Calamvale QLD 4116 say that it was good decision to bought it in 2014.

I guess it is now too late for me to look for NRAS property.

 

@euro73 mentioned it in a post, I don't recall the details I'm afraid.

 

I don't think it's too late. I'm still looking into the idea. Interested in paying down some ND debt.
If you bought the latest tranch of NRAS stock, and settled by Xmas, you'd still be in line for 9.5 years of incentives.

Or you could buy older stock.. I'm considering up to 2 yrs old, if the price was right and it the area isn't crowded with NRAS stock.

I'm not in a huge rush, I'm still weighing up the numbers against building new dual occ/built-strata in a few places.

 

Ditto..I would consider this also....but of course at a discount.

 

Exactly. The numbers have to work. It looks like @euro73 and @LibGS have had success with NRAS, no reason why others can't.

The fundamentals are no different from buying any other property. I still want to buy in decent locations at a price that works for me. Normally I'd try and buy BMV, but with NRAS and it's yields /incentives, I'd probably have to meet the market.

 

@sash if that's the case, then do you think the Perth NRAS property would be the good choice to buy now due to property cycle clock is on the down ward cycle ?

 

Where about in Perth for NRAS example ?

how do you know if it is NRAS, because the normal search engine does not mention if it is NRAS or not.

 

Maybe....but it would have to be an abolute bargain!

 

Use the key-word field in the search function on realestate.com.au and enter "NRAS"
Alternatively talk to someone in this forum who specialises in NRAS properties.

 

In realestate.com.au, in the search click on More Refinements, then put NRAS into the keywords fields. I'm seeing 20 results in WA.

There are charlatans selling it, be careful, get upfront vals. If the property doesn't work without NRAS, then I wouldn't consider it.

Don't forget, you pick the tenants, they aren't necessarily housos. Currently a couple with 2 children can earn 99k and qualify.

National Rental Affordability Scheme (NRAS) – household income (indexation) | Department of Social Services, Australian Government

 

I have only read page 1 but I have to say in my 2 years in this forum there has yet be someone who knows their #### about a topic more than @euro73 knows about NRAS.
Kudos mate, you make me wish I had jumped on board sooner instead of missing the boat.

Note - NRAS would not work for me as any reinvestment plan that involves a wife with a keen liking for shopping and holidays doesn't work... Well really nothing except making an app and selling it for millions is going to work for me.

 

Not sure there's much "good" buying in Perth at the moment. Pressure on prices is still there, still going down in most areas.

 

haha.. sounds familiar (though I'm more likely to spend on hols ). Neutral gearing with CG is your strategy then??

 

I'm a very hands off investor, so NRAS suits me, no renos, no development. I have no clue about CG and that stuff, I couldn't pick a winner from a lemon, so the mathematical certainty is good.

The only unknown variable for me is CG, I assume 2% annual growth in the value of the property. But I only factor that in as a bonus. Compounding debt reduction is my thing.

A word of warning about @euro73, he is a top bloke and loves NRAS and will talk with you for ages on the phone. Sometimes spend a lot more time talking to him than you intended.