Nras #2

Great thread Euro73 and shame on those that have knocked you. Its been a while since we looked at Nras the first IP we did was supposed to be done this way but do to the queensland consortium not knowing their right arm from their left at the time we rented out to the private sector instead.
We are now looking at a second IP and Nras is still on the cards. Finance from what I can see is improving which is good.

We did go through Heritage Building society first time they didnt seem to have a problem, hoping thats the same second time around.

Keep up the good work and very informative information

Thanks Jean
 
It was a house and land investment loan and we had drawn the majority of it down when we decided to pull the plug on NRAS as the consortium didn't have a clue and at the last minute was still trying to get a property manager, the last we were told is that they were lining up Park Trent to do it. Enough said we pulled out at the very mention of them. Our bank manager had all the info given to her before we went ahead with the loan. Also had recent talks with our bank just follow up to see where we are at and NRAS was mentioned again and although a different manager this time around, nobody said no we will not lend to them, so here is hoping
 
There have been only a few posters on SS as knowledgeable, accurate and unbiased on any subject as euro73 has been on the subject of NRAS. Thank you euro, I’ve learned and benefited a lot from you. I, for one, look forward to reading more of your posts.

Thanks for the kind words. More than happy to help with any information Im able to.
 
I've been looking for a property to invest in, and to my surprise, I have found that very few accountants, agents or investors seem interested in NRAS properties. I'm just wondering why. On the surface it seems like such a good deal - the Govt gives you $10,000 tax-free dollars a year which would put the investment into a positive cash flow position while at the same time allow you to negative gear. It seems like a win-win situation and yet by and large I seem to encounter negative opinions and suspicions over the scheme.

One of the main objections is that the properties are over-priced. But if the bank values a property and approves a loan, surely that must mean it wasn't that over-priced?

Another objection I've heard is that the houses are not in good investment areas - far from the city etc, which I agree is a bummer. But wouldn't the positive cash flow and tax incentives make up for that?

I'm just confused, I guess, in trying to decide between NRAS, a worry-free, but possibly less profitable investment and a non-Nras property in which the investor has complete control but the worry of a negative cash flow and tenancy.

Does anyone have any thoughts? I live in WA, by the way, where I've been told the Head Lease has no restrictions on resale.

Thanks everyone
 
hi all,

I am looking at doing a development for a NRAS organiser at the moment. he had a large allocation and partners with developers (me) to provide the empty, clean sites in an accepted postcode and then gets them professionally built.

How is the NRAS market going? I would imagine it would be better suited to the lower end market as the $10k becomes more attractive there. This would be around the $350k market so $10k would be 2.85% after tax in and of itself.
 
NRAS finance

I have just attained finance on a few NRAS properties for myself and my family. I can provide the information on which financial institutions are looking at them. There is a page worth of info I have collated. Message me if you want the detail.
 
Hi all

Great read so far

I have started to talk to some accountants and developers and have started managing some of the NRAS Properties in Brisbane

what I have found out is that some PM are still charging 8.5%+GST on 20% above the current rent.

Remember all the properties need to be managed by a PM but look at your fees as some agencies are getting away with alot.
 
Government risk with NRAS?

Hello everyone,

This is a first post and quite possibly going to get a standard response of "read the previous posts", which I have, so sorry about that in advance.

My question is about the government risk associated with NRAS, and whether people believe that the incentives are at risk of reduction or removal with the possible introduction of an alternative federal government?

I know that Abbot recently said he supports the legislation, but I can’t find if there is any guarantee’s in place. Have people signed contracts upon purchase that clear up any doubt?

Thanks, and sorry again if this is a repeat.

McGee.
 
Hello everyone,

This is a first post and quite possibly going to get a standard response of "read the previous posts", which I have, so sorry about that in advance.

My question is about the government risk associated with NRAS, and whether people believe that the incentives are at risk of reduction or removal with the possible introduction of an alternative federal government?

I know that Abbot recently said he supports the legislation, but I can’t find if there is any guarantee’s in place. Have people signed contracts upon purchase that clear up any doubt?

Thanks, and sorry again if this is a repeat.

McGee.

I have been wondering that myself also McGee. Example; when the new state gov of nsw were looking at abandoning the solar power rebate scheme?
 
I have been wondering that myself also McGee. Example; when the new state gov of nsw were looking at abandoning the solar power rebate scheme?

Or at a fed level, roof insulation would be another one (have to pity some of the business owners and workers set up to deliver under that scheme). While nothing's sacred, I'd be surprised if the NLP would significantly alter the NRAS.

The current Fed Govt websites talk about their 10 year commitment and this is also mentioned in the National Rental Affordability Scheme Act 2008 and National Rental Affordability Scheme Regulations 2008. I know legislation can change, but I doubt they'll directly tamper with this one. I guess there's always room for indirect adjustments to tax and other related laws though...

Alright... time for some input from our NRAS gurus. :)
 
Nras

Hi,

Sorry about the delayed reply. I was in Toowoomba over the weekend - which I was surprised to see in the latest edition of the Australian Property Investor... interesting - but for another thread eh?

I have too just re-read the entire thread. EURO73 is definitely on the money and I am sorry if this is a repeat of anything you have said Euro. Despite some of the vitriolic posts you have received back you have obviously done this before also.

I have found that if I supply this below list to a broker, they can make it work. Can I also not take the credit for this. This was a list supplied to me by my brother who is a developer in Central Queensland.;

Accelerated Wealth Systems ( Quantum) Firstmac. 80% LVR without LMI. They use 65% Gross Rental for servicing and they DO use 100% of the NRAS incentive as tax free income for servicing. They have the best borrowing capacity by far. for NRAS.

QAHC - Head Lease Agreement Westpac, St G and Rams, 70% LVR without LMI, 85% with LML They use 65% of Gross Rental Income for servicing, They do NOT use the NRAS incentive for servicing, Firstmac, 80% LVR without LML They use 65% Gross Rental for servicing and they DO use 100% of the NRAS incentive as tax free income for serviCing. They have the best borrowing capacity by far, for NRAS.

Affordable Management Corporation Firstmac. 80% LVR without LMI. They use 65% Gross Rental for servicing and they DO use 100% of the NRAS incentive as tax free income for servicing. They have the best borrowing capacity by far. for NRAS.

Bendigo Adelaide - 80% LVR without LMI. They use 65% Gross Rental for servicing and they do NOT use the NRAS incentive for servicing.

Questus - Non Entity Joint Venture via Managed Investment Scheme. Westpac, St G and Rams, 70% LVR without LMI, 85% with LML They use 65% of Gross Rental Income for servicing, They do NOT use the NRAS incentive for servicing,

Firstmac. 80% LVR without LMI. They use 65% Gross Rental for servicing and they DO use 100% of the NRAS incentive
as tax free income for servicing. They have the best borrowing capacity by far. for NRAS.

Aspire - Non Entity Joint Venture Westpac. St G and Rams. 70% LVR without LMI. 85% with LMI. They use 65% of Gross Rental Income for servicing. They do NOT use the NRAS incentive for servicing. Firstmac. 80% LVR without LMI. They use 65% Gross Rental for servicing and they DO use 100% of the NRAS incentive as tax free income for servicing. They have the best borrowing capacity by far. for NRAS

Yarran Group - Non Entity Joint Venture. Westpac.StGandRams. 70% LVR without LMI. 85% with LMI. They use 65% of Gross Rental Income for servicing. They do NOT use the NRAS incentive for servicing.

UAHA - Non Entity Joint Venture Firstmac. 80% LVR without LMI. They use 65% Gross Rental for servicing and they DO use 100% of the NRAS incentive as tax free income for servicing. They have the best borrowing capacity by far, for NRAS.

Ethan Affordable Housing - Non Entity Joint Venture Firstmac. 80% LVR without LMI. They use 65% Gross Rental for servicing and they DO use 100% of the NRAS incentive as tax free income for servicing. They have the best borrowing capacity by far, for NRAS.

Happy Hunting,
CP

P.S. - do I need a signature? - they just seem to get in the way of the post. Perhaps if I had something insightful or witty to say...?
 
Firstmac one is better for completed properties. if it is construction you cannot use the incentive for servicing. Others to look at with varying degress of success is NAB, BoQ and Bankwest. Not every lender will suit every person but like most things there are good points and not so good points with each lender. Just make sure you disclose that it is NRAS and you should be fine.
 
NRAS payment part year?

If you buy an off the plan NRAS approved IP. Are you entitled to the NRAS payments from the day the land settles? Or only once a tenant moves in?
 
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CP-EXCELLENT post!! a great run down on the list of lenders... to be honest some i personally haven't heard of myself!! there's a few i can probably add to the list- but it wont be productive as your list is good enough!

P.s- i alwasy love reading Euro's post; so passionate !


Regards
Michael
 
Good update CP.

Be nice if we could structure that info in tabular format.

Question for our more experienced folk - what's the best way to do something like that? Add as an attachment, convert into an image, or just leave it as text?

As for signature blocks, I'm really not sure either. :confused: Beyond the FAQ guidelines, I'm still coming to grips with the culture of the forum and what's encouraged and what's not. I don't like to be reclusive (quite the opposite), so I like people to feel welcome to call or send me an email, yet I sense only a few folk want interaction beyond the forum. As this is obviously home for many, I also don't want people feeling offside in their own home. Tough one, so I've ditched my sig block in the meantime until I work that one out. :)
 
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