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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...?
Hi all,
These NRAS listings are interesting. My agent in Bendigo just became an agent for a big NRAS guy with a couple of hundred allocations but they cant put them on RE.com for some reason - anyone know why?
Either way if people are after NRAS properties let me know and i will pass on his details.
Cheers
Ben
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.
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.
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?
No. In order to receive the NRAS entitlement (75% comes from the fed Govt in the form of a (non assessable) refundable Tax offset and 25% from the State Govt in the form of on assessable cash-ie a cheque) the property has to be entered into the scheme via a third party agreement with one of the NRAS consortiums and be compliant That could be a Head Lease Agreement, Managed Investment Scheme or Non Entity Joint venture- Ive written posts on this earlier in the thread if you want more detail.
Once the property is entered into the scheme, it must demonstrate compliance before you receive payment- ie must be rented at 20% below market rental, or 25% in the case of the QAHC Head Lease model, and must also be tenanted by tenants who qualify via the relevant income thresholds applicable to the scheme, for the rest of the financial year, before the consortium receives payment, and passes it on to you, the investor.
I believe (I'm told by some accountants, anyway, so it would definitely be sensible to check with yours or the ATO as I don't pretend to be a tax law expert) that the Federal component of the scheme- ie the 75%, can be claimed via a monthly tax variation, though.
Hope this helps.
I had a look at an accountancy firms presentation on NRAS and they said NO. You can apply for a variation in relation to the normal deductible expenses you would with any IP but not for the incentive. They could be wrong but I would like to see proof otherwise.
As everyone else has said before me Euro, you should be charging for this stuff! But as your not (yet) I will just say thanks for the great info.
Has anyone got a view on how NRAS are being valued after a period of holding?
I have read about one investor that has had their NRAS revalued to find it well under the market price for a similar non-NRAS property in the same area. Apparently the valuer saw the NRAS as having a smaller buyer pool than non-NRAS. I do find this odd as it is widely known that these properties can be taken out of the NRAS scheme at any time. The obvious cost being the loss of tax benefits specifically related to NRAS qualification.
Apology if you have seen me ask this question before. I just haven't seen a qualified response yet. Or at least an independent verification / rebuttal by another NRAS investor.
Thanks Euro. As always, time will tell.
Obviously my underlying bias is to determine whether purchasing an NRAS or two in the near term will significantly hobble my CG in the medium-term and thus my ability to leverage the equity and keep growing.
I think I need to keep a close eye on it for now.
OK- here's where I'm about to get a hiding from the eternal CG hawks
I think we all have to face the realities of how little or limited Capital Growth might be a reasonable expectation this decade.