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My take on all this is: NRAS will increase ones 'real' cash flow, however the net, short term (1-3 years) effect is a reduction in DSR in the eyes of all lenders bar two. For investors who are just starting out, the extra cashflow would be great however to limit themselves to two lenders early...

Example: Purchase Price $300,000 Market rent $300pw (5.2% yield) NRAS rent $240pw (4.2% yield) + $190pw incentive = 430pw (7.5% yield) Assumptions Expenses (rates etc) are equal to depreciation benefits. 4.99% loan fixed for 3 years, 105% finance - $15,719 interest + $22,360 (rent + NRAS...

Yes... I can see this. Interesting. I have no non-deductible debt. I haven't done the maths yet (hard to do without lenders DSR calcs), would anyone be able to help I wonder how long say a $300k NRAS property would take until it increases a persons DSR roughly? Are we talking around 2...

Is FirstMac the only lender that includes the NRAS incentive towards your DSR? From what I've heard most majors won't count it and will only count the reduced rent (rather than market rent). I love the sounds of NRAS although it seems like it may limit future purchases.

I've noticed there are a few different NRAS models and have had a quick understanding of them here - http://www.ntlawyers.com.au/property-structuring-within-national-rental-affordability-scheme It seems that the Head Lease is one to avoid as I would prefer to choose my own PM. What are the...