NRAS credit fee
- Thread starter Sione
- Start date
NRAS "entitlements" do cost money, because Approved Participants (consortiums) incur costs in obtaining them on behalf of developers. But it's the developer who chooses to ask for them from the consortium, so its the developer who should absorb the cost. It should never be passed on to the buyer.
They've pulled a sneaky here- instead of absorbing the price of the NRAS "entitlement" into their sale price, and knowing they would not be able to get away with loading the sale price by 5.5K and creating a two tier pricing model for their NRAS and non NRAS stock, they've decided to keep all stock at the same price and charged you extra via an external mechanism, instead.
I think they should refund you the money. If they have elected to use NRAS on their stock to help sell more of it, it should be at their cost- not yours. I'd complain to the WA Dept Of Commerce
They've pulled a sneaky here- instead of absorbing the price of the NRAS "entitlement" into their sale price, and knowing they would not be able to get away with loading the sale price by 5.5K and creating a two tier pricing model for their NRAS and non NRAS stock, they've decided to keep all stock at the same price and charged you extra via an external mechanism, instead.
I think they should refund you the money. If they have elected to use NRAS on their stock to help sell more of it, it should be at their cost- not yours. I'd complain to the WA Dept Of Commerce
Hey all,
I got a response from 'Property guru' Rob Caruso from NRAS Property Solutions.
He said:
"Hi Jennifer
It does cost money to get your development nras accredited – somewhere between $3850 and $15,000 per dwelling. Its called an nras dwelling supply fee and is normally charged by the consortiums – not the govt.
Sounds like the 5500 is for that dwelling supply fee and is being passed on the purchaser.
I have in the past sold nras property where the developer insists that the nras dwelling supply fee is paid separately to the property. Ive not had anyone tell me that they wernt able to claim it back on tax.
Some buyers have called it a cost of procuring a tenant fee - like a property management letting fee, to be able to claim tax. Also you could argue with the tax powers at be that it cost you 5500 to get your nras qualified tenant. I would like to clarify that Im not giving tax advice here – I am nowhere qualified to do that.
In the past developers were happy to absorb the dwelling supply fee as they made it up by reducing marketing and interest costs – as nras sells quickly.
These days many developers feel that they hold the property investment holy grail and think its fair to charge an additional fee for the nras.
Im not advocating that this is a fair practise or siding with the developers but at the moment every one is rushing to buy an nras property when stock is very limited - so its bound to happen.
The most important thing is that what ever the fees are, and along with the cost of the property – that the valuation of the property equals that total cost.
Ive seen property that is as much as 80k over priced which doesn’t warrant buying an nras property. If its 5 or 10k over priced I think its still a good buy.
NRAS is one of the best property investments Ive ever seen, I am an nras investor as well as a reseller and highly recommend the scheme to anyone."
Thoughts?
I got a response from 'Property guru' Rob Caruso from NRAS Property Solutions.
He said:
"Hi Jennifer
It does cost money to get your development nras accredited – somewhere between $3850 and $15,000 per dwelling. Its called an nras dwelling supply fee and is normally charged by the consortiums – not the govt.
Sounds like the 5500 is for that dwelling supply fee and is being passed on the purchaser.
I have in the past sold nras property where the developer insists that the nras dwelling supply fee is paid separately to the property. Ive not had anyone tell me that they wernt able to claim it back on tax.
Some buyers have called it a cost of procuring a tenant fee - like a property management letting fee, to be able to claim tax. Also you could argue with the tax powers at be that it cost you 5500 to get your nras qualified tenant. I would like to clarify that Im not giving tax advice here – I am nowhere qualified to do that.
In the past developers were happy to absorb the dwelling supply fee as they made it up by reducing marketing and interest costs – as nras sells quickly.
These days many developers feel that they hold the property investment holy grail and think its fair to charge an additional fee for the nras.
Im not advocating that this is a fair practise or siding with the developers but at the moment every one is rushing to buy an nras property when stock is very limited - so its bound to happen.
The most important thing is that what ever the fees are, and along with the cost of the property – that the valuation of the property equals that total cost.
Ive seen property that is as much as 80k over priced which doesn’t warrant buying an nras property. If its 5 or 10k over priced I think its still a good buy.
NRAS is one of the best property investments Ive ever seen, I am an nras investor as well as a reseller and highly recommend the scheme to anyone."
Thoughts?
. Hopefully this sorts it out - an interesting situation nonetheless!
