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@euro73. Is there a time limit on how long NRAS properties will be developed? I think you had mentioned previously there was a number limit per state per year. Is that correct? Does NRAS replace some public housing. Eg Is less spent from government on building new state housing since NRAS has been introduced.
Be patient with your accountant though, especially if they aren't specialists in property investment. In my experience, most accountants are not only unaware of NRAS , or have a very poor understanding of it, but struggle to even explain what a Refundable Tax Offset is.
7DD4, have you heard when the Padbury rezoning is likely to happen? My friend and I have a place there. Thanks.
If the relaxed granny flat rules entice investors enough to provide cheap accomodation it would save the state govt pumping money into NRAS although I think it will be a while before granny flats take off in WA.There is meant to be a 5th round of incentives, the final 10,000... and those 10,000 dwellings are to be delivered between July 1 2015 and June 30,2016. i.e the 15/16 financial year. However, it would appear to be on hold and like all Fed spending, is being reviewed under the Commission Of Audit that is currently happening. So the existing NRAS allocations from Round 4 may now in fact be the last that are actually funded. This means that anyone with plans to acquire NRAS properties needs to consider accelerating those plans... because Round 4 allocations must be delivered and activated by June 30,2014.
There are a small number of Round 4 allocations already funded for delivery in 2015 and 16 however, but its only about 1,000. And there are also 2,000 new allocations funded for delivery before December 2014 under the "shovel ready" tranche.... but the long and the short of it is; those investors interested in NRAS who were planning on waiting until later this year or next year to start acquiring, may need to review their plans.
Of course, if Round 5 does go ahead, there will still be 2 years to invest. If not, you have between 4 and 10 months, basically.
NRAS was not designed to replace public or community housing. It was designed to create affordable housing. The income thresholds for eligible tenants are significantly higher than public housing thresholds. Quick example - max income for NSW housing is 57K. max income for NRAS is 135K
It's one of the myths and misconceptions that continues to be peddled about over and over again by the critics- that NRAS = public housing or social housing. The people who publish these types of things are either ignorant or being deliberately misleading , and I can only assume that would be because their businesses revolve around selling regional 2nd hand property or stock that doesnt have NRAS eligibility. Either way, they have zero credibility on the subject because they are simply wrong.
I would be very selective on location. An NRAS property in a location like that sounds great!Sage advice re: your accountant.
I deal with accountants also and my experience is they don't seem to know a lot about financing for IPs even though they may portray otherwise.
Fair enough though as I have some knowledge of taxation but much more on financing property, among other asset classes.
Have to agree with Euro, NRAS is a misunderstood investment strategy that has been tainted by rouge operators.
In fact I helped a friend move today and the property she was renting is an NRAS property and was the only type she could afford as she is studying nursing at a nearby uni.
She told me that there was a a lot of NRAS properties in the surrounding area and it is an upper middle class suburb of Perth so definitely not social housing clientele in that neighborhood.
euro73 - Were can I find a list of current NRAS properties to run numbers and location with ??
If the relaxed granny flat rules entice investors enough to provide cheap accomodation it would save the state govt pumping money into NRAS although I think it will be a while before granny flats take off in WA.
I would be very selective on location. An NRAS property in a location like that sounds great!
I have come across a few people renting who are low income that have never heard of the scheme so a lot of tenants don't seem to understand it also. I have noticed advertised NRAS rentals get snapped up quickly though.
Geez Euro, in the zone on that response!
Thanks FMS and Euro73
Looked into NRAS some time back and decided against will take another look, to see whats on offer.
Deposit recycling - not heard of this, how is this achieved ??
Thanks David