Building our own NRAS property...

[Danieljk101]

Hello all, just looking for a few opinions on this matter to see if it is actually doable/worth while.

We are in the process of sub-dividing our block in Quakers Hill (near Blacktown, NSW). The battle-axe block will be 500sqm, its about 150 meters to the train station and shops.

Originally we were going to do a house/attached granny flat - about 210sqm for the house and 60sqm for the flat. We planned to rent both and hold long term.

Now here comes the question. Do you think it is worth while to do it under NRAS and is it even possible to get such a small development approved for NRAS? Anyone with experience in doing something like this - your opinion would be great before I research it more.

Thanks, Daniel.

 

[bez23]

Do you happen to have the allocation for nras?

 

[Aaron_C]

You need to get NRAS allocation before you even think about it.

 

[mrdobalina]

You need to get NRAS allocation before you even think about it.

How do you get an NRAS allocation?

From what I understand, NRAS is generally for large scale developments.

 

[bez23]

Not really. No one knows what the exact science behind the allocations of allocations

 

[westminster]

Small developments can apply for NRAS but the last round (alleged/presumed last round) was Round 5 and applications were put in last August.

I applied for my Highgate development and I haven't heard back so presume no decision has been made and/or I didn't get my 3.

The only other way to get an allocation is to buy it off one of the NRAS providors who did get some and have some spare. I'm trying to remember how much they are to buy - I think $10k but my memory is hazy. I tried to buy 3 but no local providors had any spare they would be willing to sell me.

Euro73 is the man to talk to

 

[mrdobalina]

The only other way to get an allocation is to buy it off one of the NRAS providors who did get some and have some spare. I'm trying to remember how much they are to buy - I think $10k but my memory is hazy. I tried to buy 3 but no local providors had any spare they would be willing to sell me.

Euro73 is the man to talk to

Thanks WM. I'm doing a 15 unit development. Would love to get some of that NRAS goodness.

 

[Aaron_C]

How do you get an NRAS allocation?

From what I understand, NRAS is generally for large scale developments.

You can buy them from people who have an excess of them.

 

[DerekEdgar]

NRAS and property development

NRAS round 5 is the last one. Allocations are taking ages to come out due to the scale-down of the department. Ive got nras on the last few projects and have 25 pending.
Best chance for nras now is to get some re-allocated ones from projects that didn't go ahead. Let me know if help needed, maybe I can assist.

Derek

 

[euro73]

Small developments can apply for NRAS but the last round (alleged/presumed last round) was Round 5 and applications were put in last August.

I applied for my Highgate development and I haven't heard back so presume no decision has been made and/or I didn't get my 3.

The only other way to get an allocation is to buy it off one of the NRAS providors who did get some and have some spare. I'm trying to remember how much they are to buy - I think $10k but my memory is hazy. I tried to buy 3 but no local providors had any spare they would be willing to sell me.

Euro73 is the man to talk to

No decisions have been made on Round 5B.. Like all federal spending, NRAS is being reviewed under the Commission of Audit and there's also a Senate enquiry into housing going on which is due to report to Govt by May... The word is that NRAS is still 60/40 to proceed, but unlikely to know whether it will be going ahead for the final 10,000 allocations under Round 5b, until May/June.

When you are applying for NRAS incentives under a formal process like the one that occurred last August, there are bonus points for developments of a certain size (20 Units or more) , proximity to rail, employment, schools, hospitals etc... so those developments that meet all of the criteria should theoretically score more points . But there are also points awarded for certain locations, high needs areas identified by each state etc... so location can offset deficiencies in other areas, such as 20 unit minimum development size, for example. Basically, its like anything else- a scoring system, and any dwelling can score enough points under the right combination of circumstances.

Completely different process for transferring incentives however. Once the incentives have been awarded, there are often occasions when they arent used. For example, a developer may apply for and secure incentives for all 20 units in his project , but sell 10 to first home buyers, leaving 10 that wont be used there. Those 10 can be transferred elsewhere, via a "change request"... and thats when it's much easier to get them transferred to small developments, individual houses, duplexes, granny flats etc


Basically- you would need to wait for
1. NRAS round 5B to be given the green light or not
2. If proceeding, wait for some of the NRAS Approved Participants to identify which of their incentives will still be required for the projects they were applied for
3. get your hands on them, and submit a change request

 

[euro73]

You can buy them from people who have an excess of them.

Not quite that simple - but yes, in theory this is true. You have to get a change request approved first . Depending on the timing, sometimes thats easy, sometimes thats impossible. At different times during the year, the State and feds have preferences for certain dwelling types or locations. For example, most of last year, almost impossible to move incentives anywhere outside the ring roads in Melbourne- the State wanted them all pushed inwards. Now... no such restriction. In SA last year, for many months there were only 5 LGA's the state would support for transfers - now they are more open. In NSW, for a long time the state wouldnt let you move anything. Now you can even move from regional to metro and vice versa...

 

[westminster]

Thanks for the update - I've been meaning to get in touch to get it but I assumed like anything govt based they hadn't made a decision and I'm in no rush.