Nras #2

Hi
I was unaware at the time there were other company's at the time. I am very aware now that there are. I just found the house in the area I wanted the sums looked good.
My concern is the lack of management. I go to a lot of properties in my every day job and see several trashed rentals a week. No one has set foot in mine since the very first entry report was done. I have reread my contract and by my understanding it states the condition of the house must be checked every 3 months.
Other management I have used do inspections every 3 months and email photos to prove/ show the condition during the visit..

I need to do the figures and see if I would be better off leaving NRAS and getting market rent and real management fees etc.

The deal is done and am locked in for the rest of the time or leave and take my chances.
Been playing this game for 21 years and this one gives me of grief then any other... I don't see any way to move to another company,,,
They answer to no one and as you said can do as they please...

ye old buyer beware
 
Look I am an advocate for NRAS and how it can be employed to achieve significant wealth, BUT as I have said previously (and repeated again and again across many many posts over recent years ) not all NRAS is equal. Whether it be valuations at the time of purchase, or ongoing fee structures, it always comes down to the numbers.

Yes, what you have purchased has very high fees because of the NRAS participant you are dealing with, but I think you will find that you'll find that you will still be better off leaving the property in NRAS.

Whilst you aren't getting all you could have been getting from the cash flow, I would imagine it still generates a superior deductible loss and cash flow outcome to the alternative- which is full market rent and no $9981 incentive.

Put another way, you're getting less than maximum return from what NRAS can offer, but even that outcome should be superior to no NRAS at all.

Regarding the lack of inspections - call them. Complain. Then call your local member and complain. NRAS is a Federal and State Govt initiative. Use your local state and fed members to exert pressure on these guys to do as they are meant to do. Round 5 is about to open up and these guys will be applying to the Govt for more incentives, so they will be particularly sensitive to managing any poor feedback , especially if its coming through local members.
 
Have appreciated what I have learned from this thread, especially your contributions Euro73. I agree with your post that there is no guarantee that the 'double in 10 years' theory will continue, yet that is still what is being pushed by all property investment promoters. Euro73 I noticed your repeated reference to the benefit of using the annual $9500ish from the Government towards paying down your PPOR property and making big interest savings there. What if you have already paid your PROR right down? If the PPOR is already paid down, then I take it an NRAS property is not as appealing?
 
Still provides cash flow that you can redeploy towards other wealth creation. That may be assisting with holding costs on other cash flow negative property in one's portfolio, or it may be building up your super. Ultimately, it's surplus tax free income so it can be redeployed however you choose.
 
onlyifamppowered said:
So people have heard of them......
Click to expand...

Am going through what you are talking about at the hands of the same consortium. You are certainly not alone! I am keen to put pressure on these underperformers through emails/calls to local members etc as Euro73 suggests - I don't see another solution as they are a law unto themselve. Hope to hear from others willing to rise up.
 
HI
I'd be keen to hear of others going though the same issues with the same mob. Maybe on mass we have a chance.
I am always getting told by the manager I am the only one complaining....
 
HI
I know of another person very unhappy with the service, my mortgage broker who is also the guy that helped many get loans when banks knew nothing of NRAS knows quite a few people also. If we can get our selves sorted we have a chance.
I have spoke with someone from the NRAS gov phone info number and they feel it should be easy to change providers.....
I am still waiting for a call beck from the office of the minister for housing and public works. His aid said we should be able to "force the hand" if required.

This might be best handled on the quite, PM me if you are in the same boat....
 
You wont be able to change providers unless QAHC agrees to it, which is unlikely. They'd be giving up their compliance income and whatnot.

Your best chance is to complain to your local member and your federal member...

I've been writing about these issues on here for several years - told people to stay away from certain NRAS consortiums and areas....
 
HI
I have an NRAS property and have the worst consortium possible. Very expensive, no feedback, no care, and no way out with out costing me money. Avoid head lease if you can. There are some good ones out there, just not mine.
I still like NRAS but

Caveat emptor
 
That's unfortunate, but as I've said many times.... choose your consortium wisely. The vast majority of Non Entity Joint Venture models are free of entry and exit fees... rather than going over old ground though, read through my posts of the last couple of years where I outline these things in more detail. Or, for anyone considering an NRAS purchase, it may be an idea to PM me and have a chat...
 
HI
Has anyone used Aspire as the NRAS consortium ?
Looking for my next property and the best preforming places I can find are NRAS...
Still getting a case together to get out of my last NRAS consortium and keep it in NRAS and now considering another...
A man needs a good blow to the head sometimes !
 
Few questions on NRAS please

Can anyone please clarify on the below?

1. Is it true, once NRAS property is settled in ones name we will get paid NRAS incentive for 10 years in spite of incentive cancellation?

2. If you place deposit for house and land package now and anticipated completion is in next 2 years, in the mean time if Govt. cancel NRAS incentives? What will happen in this case?

Thanks
Moh
 
MohanWei said:
Can anyone please clarify on the below?

1. Is it true, once NRAS property is settled in ones name we will get paid NRAS incentive for 10 years in spite of incentive cancellation?

2. If you place deposit for house and land package now and anticipated completion is in next 2 years, in the mean time if Govt. cancel NRAS incentives? What will happen in this case?

Thanks
Moh
Click to expand...
1. Do you mean if the scheme gets cancelled, or if the actual incentive which has been allocated to your particular dwelling gets cancelled? Two different things...

a. If the scheme gets cancelled by Govt, any NRAS allocations which have already been approved would/should not be affected, because Govt's dont apply legislative changes retrospectively. It would be an administrative nightmare for them. Besides, there is no need for the scheme to be cancelled or altered- current legislation only allows for 50,000 dwellings under NRAS and 40,000 of those are already allocated, with the Round 5 process for the remaining 10,000 currently underway. Basically, once these last 10,000 are awarded, the scheme is ending anyway. There's nothing for either political party to cancel.

b. If the incentive gets cancelled - this can only occur if YOU fail to keep your property compliant ( rented at a minimum 20% below prevailing market rate and tenanted to an eligible income earner) or if YOU withdraw the dwelling from the NRAS.

2. Existing NRAS allocations have all been fully funded and budgeted for and legislated by both the Federal Govt and the State Govt ( remember, Fed pays 75% via Refundable Tax Offset and State pays 25% via NANE Cash ) ...so it's difficult to imagine the Govt revoking them. Even with a change of Govt , they may not expand the scheme beyond its existing 50,000 allocations, but it's very unlikely they will cancel existing, funded, allocations. Always remember, NRAS is a LIBERAL initiative, not a LABOR initiative. And always remember, Mr Abbott, who I think its fair to say, is happy to offer criticism of anything and everything the Govt does, has never spoken out about NRAS, its costs etc... and interestingly, the delivery of NRAS properties is running waaaaaaaay behind- so it's very much a political opportunity for him to win some points- but he hasnt ever said a word. And even more interestingly, when the current LABOR Govt did in fact attempt to reduce the number of NRAS allocations from 50,000 to 35,000 back in 2010, it was the LIBERAL party and GREENS who blocked them.

Think about what NRAS really costs - about 120-130K across 10 years. If they had to provide funding to build 50,000 dwellings, the cost to Govt would be FAR more expensive, and it would all be required to be funded over a much shorter period.

Think about what NRAS creates - employment for builders, wealth creation for investors ( and therefore relief from future pension costs for the Govt, and a whole range of other things)

When you take a considered view, politicians LOVE things like this. Low costs, big social and political wins... smart lever pulling on many levels.

So, while we dont know the future, what we do know is that up until now, NRAS has enjoyed the full support of the LIBERAL Govt, Federally and at State level... so I dont think you have much to be concerned by.

They invented NRAS, and I believe they will continue to fund NRAS.
 
euro73 said:
Aspire operate a Non Entity Joint Venture. They are good operators.
Click to expand...
Hi Euro73

I have been reading some of your posts about offtheplan and consortiums and am feeling very worried. We invested in 2 nras property last year , the off the plan is due in 2014, nothing we can do about that now , i guess. But my question is whether there is any hidden problems I dont know about regarding consortiums and PMs, the property we have in Bendigo is one of 14 nras units and the first owners meeting is next week. I thought that Ethan would be taking care of everything, what exactly is their role and is there anything i should be careful about regarding consortiums and the strata/ PM side ofthings? If you have posted about this before, pl let me know, i cant seem to find much about ethan (and the other one is questus). much appreicated,
 
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.
 
You must log in or register to reply here.

Similar threads

mattjones
Brisbane Property Group meeting is on Tuesday 30th June
Replies
0
Views
2K
mattjones
mattjones
H
Off the plan in Melbourne... withdraw issue
2 3
Replies
41
Views
7K
Terry_w
Terry_w
B
Dream to be Comfortable not Rich. Start Now!
2
Replies
33
Views
7K
ChrisA1
C
mattjones
Gold Coast Property Meeting ? 8 May
Replies
0
Views
2K
mattjones
mattjones
mattjones
Sunshine Coast Property Group Meeting ? 6 May!
Replies
0
Views
1K
mattjones
mattjones
Back
Top