The government has recognised the issues of increasing rents and a shortage of housing right across Australia.
The National Rental Affordability Scheme (NRAS) was launched for the purpose of providing assistance and funding to increase the supply of affordable rental dwellings with reduced rental costs.
The NRAS is expected to deliver up to 50,000 affordable rental homes by 2014.
In short, the investor enters into an arrangement with a consortium to have the property managed. The consortium is an approved NRAS participant. This agreement may last for up to 10 years, but the investor can pull out at any time.
The scheme is aimed at providing accommodation 20-25% under the market rental for low to medium earners (not social housing). It is aimed at people who service our communities such as retail workers, people who work in hospitality and “essential” industry such as nurses, police and teachers.
From an investor point of view, it gives those who are reluctant to get into the property market a guarantee of rental income as well as tax free government incentives of $9,981 in 2012 which is indexed.
25% of this incentive is received via a state government grant.
75% of this incentive is received via a federal government tax offset i.e. a credit on your income tax assessment.
Your negative gearing tax benefit will also be greater due to the lower rental income received.
If you are interested in this scheme, please refer to the websites below:
www.nrasscheme.com and www.nrasrealestate.com
There are samples of properties available for purchase on these sites and one must make sure, as an investor, that the purchase price of the properties represent that of the area selected.
PLEASE TALK TO US BEFORE CONSIDERING THS SCHEME.
