Government Backed Rental properties

Thanks for the info guys ..

Too good to be true, but I've checked NRAS website and yes , such things exist.
 
Check the locations the properties are in that Viva are offering particulary in Tas.

The prices are significantly cheaper than mainland prices so on the surface appear to be great investments.
 
There was an advertisement in this months API. The NRAS is where the gov pays the owner $8,000 per annum for 10 years to rent newly built property at 80% of the market rate to low income people. I think the lease is actually with the government. It sounded interesting when they announced it I think in 07 or 08, but it was restricted to large developers and super funds etc. Looks like this company is making individual properties available to investors rather than keeping them for themselves.
One question I had was if the $8,000 per annumn is taxable income? If it isnt, then on top of getting $8,000 from the governement, you are also getting lots more negative gearing ongoing, as well as depreciation on new properties.....
 
There was a complex of units that recently came on the market near me that had a similar deal going. In this case (as I understood it) you rented it to the QLD gov't at market rate but they could put whoever they wanted in there. My only concern is what would happen in the way of maintenance. Given that they are using it to provide affordable housing, you're likely to get lower quality tenants in there so who pays for repairs when things are damaged? If I as the owner don't get to choose who goes in, then I don't want to pay for the inevitable damage - so I'd want to ensure that's the case before signing up.

As far as income goes though, it's guaranteed rent for 10 years, even if the properties are vacant so it certainly has its advantages.

(and for the record the complex was newly built, and less than a month after people moved in one of the upstairs units had nikko scrawled over all the windows...)
 
The govt is offering an incentive in the form of a refundable tax offset. That means if you dont pay tax you get the full amount refunded, if you do pay pay you get the incentive tax free.

You can also apply to have the incentive paid weekly llike the old 221d.

Queensland is the only state where the tenants has to be selected from the housing commission list.

In Tasmania the vast majority of the population qualifies for the lower rents (becuase of lower incomes) so you get normal tenants (the property owner can select) and the homes are in great locations.

$407 rent for $290,000 with cpi indexes guaranteed for 10 years on brand new property with little or no maintenance in suburb that was just voted #1 in all of Australia by API magazine.
 
Top