Interesting NRAS concept & how to go about it

[skater]

I recently came across a block of 8 studio's that had been privately built, but they are under the NRAS scheme.

I haven't really looked into NRAS at all, but this seems like a great little earner for the owner.

So...my question is, how would I duplicate this? Can a private person develop a property under NRAS, and would it be worthwhile going to all that trouble?

 

[Erica]

Basically the answer is no, a private owner builder can not build NRAS properties, go to the Australian Government website for NRAS, the applications for builds go out in tenders and it is large scale corporations such as community organisations that qualify

 

[skater]

Basically the answer is no, a private owner builder can not build NRAS properties, go to the Australian Government website for NRAS, the applications for builds go out in tenders and it is large scale corporations such as community organisations that qualify

Well, yes, that is what I thought too.

BUT I recently saw one that WAS privately built, so obviously it is able to be done.

 

[Erica]

happy reading if you'd like to know more

http://www.fahcsia.gov.au/sites/def...lication_guidelines_-_update_3_june_2_0_0.pdf

check out section "1.3 Organisations Eligible to Apply"

 

[skater]

The details, as I know it so far is a private individual has built a NRAS development of 8 Strata Titled fully furnished studio's. It is one level only and built to resemble student accommodation. There is no onsite parking and it has a communal living area and a coin operated laundry. This is a stand alone block and is not part of a complex.

 

[Erica]

A private investor can certainly enter into a house and land package and pay full retail to a builder that has been approved for NRAS and has incentives allocated

Something like this easy enough:
http://www.realestate.com.au/property-house-sa-parafield+gardens-113542395

 

[Rolf Latham]

we are in the process of a client looking to obtain a direct allocation for a 4 unit development so there may be some exceptions there

ta
rolf

 

[skater]

we are in the process of a client looking to obtain a direct allocation for a 4 unit development so there may be some exceptions there

ta
rolf

Thankyou Rolf, that is the kind of information I'm looking for. I've had a brief look at a few things & it seems that what I am looking for might be possible. I've just found a link that looks VERY interesting.

 

[Waldo]

From what I've heard a private developer can purchase NRAS alotments from the big groups. Search for some of Euro73's posts (he's in the NRAS industry I believe) - I think I have seen the number $8k thrown around as a cost to buy an alotment.

 

[skater]

Really? Hmmm.....interesting.

 

[jclegg]

Hi Skater, I could be wrong but I thought the idea was to avoid the "council flats" genre of housing by only allowing a small % of units in a development to be NRAS?? Has this changed?
Jus

 

[westminster]

Hi Skater, I could be wrong but I thought the idea was to avoid the "council flats" genre of housing by only allowing a small % of units in a development to be NRAS?? Has this changed?
Jus

Nope NRAS is not govt housing, it is housing that is 20% below rent value to make it more affordable.
I looked into this a bit recently and either as a owner you can apply for Round 5 which closes in August or you can ask for a NRAS provider to apply for you or if they have extra credits they can sell you them - price I was quoted was around $8k each but the place I spoke to didn't have any.

 

[jclegg]

Nope NRAS is not govt housing, it is housing that is 20% below rent value to make it more affordable.
I looked into this a bit recently and either as a owner you can apply for Round 5 which closes in August or you can ask for a NRAS provider to apply for you or if they have extra credits they can sell you them - price I was quoted was around $8k each but the place I spoke to didn't have any.

I know it's not Govt housing but if all the units in a block are NRAS then the block will take on the "feel" of a council estate because it's for low income earners specifically. Originally I thought they only approved a few in each development so as to avoid this?

 

[westminster]

I know it's not Govt housing but if all the units in a block are NRAS then the block will take on the "feel" of a council estate because it's for low income earners specifically. Originally I thought they only approved a few in each development so as to avoid this?

Perhaps for larger developments but I have seen developments over here in WA that are solely nras.

 

[skater]

I know it's not Govt housing but if all the units in a block are NRAS then the block will take on the "feel" of a council estate because it's for low income earners specifically.

I think if you look at their definition of 'low income' you will be surprised by how high it is. It's not aimed at dole bludgers or pensioners, rather those workers who don't earn a great deal.

 

[mflying]

I think if you look at their definition of 'low income' you will be surprised by how high it is. It's not aimed at dole bludgers or pensioners, rather those workers who don't earn a great deal.

euro73 can help you with what you are trying to achieve.

I am doing a duplex (attached) development and happy to confirm that small developer (i am not even a developer, so to speak) can apply for NRAS and as other forum member said it will cost around 5-10K per dwelling.

I am planning to apply for round 5 before August.

 

[euro73]

I recently came across a block of 8 studio's that had been privately built, but they are under the NRAS scheme.

I haven't really looked into NRAS at all, but this seems like a great little earner for the owner.

So...my question is, how would I duplicate this? Can a private person develop a property under NRAS, and would it be worthwhile going to all that trouble?

Course it can be done- I do it for developers regularly. Anything from 2 dwellings to 200 dwellings. Anyone developing and holding their stock would, in my opinion, be nuts not to make applications under Round 5. Why on earth wouldn't you want the extra cash flow it provides? Happy to assist if I can.

 

[euro73]

happy reading if you'd like to know more

http://www.fahcsia.gov.au/sites/def...lication_guidelines_-_update_3_june_2_0_0.pdf

check out section "1.3 Organisations Eligible to Apply"

Definitely not a correct interpretation of the Round 5 guidelines - individual developers can most definitely make applications- but must do so via an Approved Participant.

Alternatively, you can form a consortium and become an Approved Participant and apply directly- just not worth it unless you are applying for at least 100-150 allocations, though. The reason ? The compliance. Not worth it unless you have some form of scale.

 

[westminster]

Just to add to this - Ultan/Euro73 is helping me apply for Round 5 with my Highgate flats. There is no guarantee I'll get approved but as it costs nothing to apply I'm going for it. The development will be cash flow positive as it is, with NRAS it will be even further CF+

 

[skater]

Just to add to this - Ultan/Euro73 is helping me apply for Round 5 with my Highgate flats. There is no guarantee I'll get approved but as it costs nothing to apply I'm going for it. The development will be cash flow positive as it is, with NRAS it will be even further CF+

Thankyou Westminster. I did speak to him. He's awesome, and it appears that I can do exactly what I was thinking, but as round 5 is coming so soon, it might not be viable. If I had a property that was suitable, I could apply right now, but I'm not too sure that what I've got would work.