National Rental
Affordability Scheme
NRAS is a term you will see, hear and possibly have many questions about.
In reality it’s a very simple concept and has some attractive features for investors. Basically the Government has agreed to provide subsidised housing to low and middle income earners by offering incentives to investors, rather than building new Government owned homes.
Some relevant points are:
• NRAS is an investor ONLY product. It does not apply to home ownership
• The Government has approved a limited number of properties Australia wide that qualify as NRAS investments
• The properties must be brand new or a house/land package
• In exchange for offering your property for rent through approved consortiums at up to 25% discount from market rate the State and Federal Government will pay you almost $10,000 in total … tax free … every year for 10 years (indexed)
• Depending on the consortium involved you may be restricted in how you can sell the property in the first 10 years
• You don’t have a choice of property manager or tenant. Controlled by the relevant consortium, tenants are chosen from a list of qualifying applicants
• The Government has approved a limited number of properties Australia wide that qualify as NRAS investments
• The properties must be brand new or a house/land package
• In exchange for offering your property for rent through approved consortiums at up to 25% discount from market rate the State and Federal Government will pay you almost $10,000 in total … tax free … every year for 10 years (indexed)
• Depending on the consortium involved you may be restricted in how you can sell the property in the first 10 years
• You don’t have a choice of property manager or tenant. Controlled by the relevant consortium, tenants are chosen from a list of qualifying applicants