NRAS

My living expenses come from all matters of things, just like any investor - development income, development rentals etc.
The $11k payment makes up for the 20% under market rental however if done correctly you use less than half of that to top it back up and the other half increases your cash flow/yield or decreases your debt. You will get to positive gear faster this way than traditional renting.

 

But it was fine in the past...you know, while you were busy getting to where you are? But now its a bad idea as a tool to help people get where you are?

hypocrisy
hɪˈpɒkrɪsi/
noun
noun: hypocrisy; plural noun: hypocrisies
the practice of claiming to have higher standards or more noble beliefs than is the case.

 

Well, that is just nonsense! We've got 3 NRAS! We don't need neg gearing, as there's no PAYG, and investment income is split....so our taxable is quite small. We are miles ahead with the NRAS payment on those three. Basically after depreciation, we pay nothing in tax. The NRAS part is not taxable.