NRAS dead?

[barnet]

Yes this is correct, but you should qualify it a little more Like all things NRAS, detail is king. There are still 18,000 Round 4 allocations that have not been delivered, and the funding of those allocations remains in place, provided they are delivered on time or can demonstrated significant progress by their "due by" date. Many of the 18,000 allocations are not required to be delivered in 2014, but are in fact already approved for delayed delivery right into 2015 and 2016 ( the same delivery dates as Round 5 ) so there will in fact still be ample NRAS opportunities to purchase across another 2 years or so.

Finding the ones that value up though.... that's the secret

Mate you seem to know a lot about this scheme. Still your comment doesn't match with this line in NRAS web site "NRAS will continue to contribute over $1 billion to housing supply and affordability over the next 4 years until 30 June 2018"

Doesn't this mean that tax rebate for all existing NRAS would finish by mid 2018 ?

 

[barnet]

Try the Department of Social Services NRAS helpline.
Phone: 1800 334 505 (9:00am ? 4:00pm Monday to Friday AEST)
Email: [email protected]

I sent email to this and no reply by next day so I called the help line (Tuesday at around 2.45 p.m.) It was during right time but it only goes to a message which ask me to call during 9-4 Mon-Fri. I assume the call centre is in Australia, then the message is not meaningful. I left a message to see if they call back. Will try to call tomorrow again.

 

[erwinsie]

Hi I bought an NRAS property in Ballarat, and the consortium (the mob that handles the incentive) "Ethan affordable housing" have appointed themselves as the property manager.
They do not forward the rent, after 8 weeks not receiving anything

this scared me, please let us know your result with them. maybe Ethan went bankrupt and ran away?

 

[abbyfresh]

The levels of fees you must pay and control you don't have i.e only certain property manager can be used at a non negotiable higher rate, plus audit fee and this / that and other make it much worse than your average body corporate deal which is at least transparent without hidden kick backs and inflated fees. There is LOTs of puff in this scheme and less control you have compared to regular stock.

 

[euro73]

Mate you seem to know a lot about this scheme. Still your comment doesn't match with this line in NRAS web site "NRAS will continue to contribute over $1 billion to housing supply and affordability over the next 4 years until 30 June 2018"

Doesn't this mean that tax rebate for all existing NRAS would finish by mid 2018 ?

The website is incorrect. The funding for NRAS - and by that I mean the entire 10 years funding for each approved property, is locked into the forward estimates. With the last of the incentives to be activated by June 30,2016 some of the incentives will therefore be paid for 10 years beyond that date. For incentives that were activated in 2011, their 10 years runs from that date. For incentives activated today, the 10 year clock starts today, etc etc...


The reason the 2018 date appears on the site is because it had been anticipated that delivery of some Round 4 incentives would not occur until 2017/18, meaning the 10 year funding would run to 2027/28 - but the Department has now advised all Approved Participants ( consortiums) that June 30,2016 is the absolute latest date for activation.... D Day, if you will. So any incentives not delivered/activated by that date will not be able to be activated. Full Stop. End of story. No exceptions.

So as I indicated in previous posts- still basically 2 years to purchase and settle on NRAS approved properties and the funding is locked in for those transactions.

If you sit through these two videos, you'll eventually hear Senator Ludlam generate a commitment to the forward estimates funding from Senator Fierravanti-Wells and the department heads he is grilling... it's documented evidence that the funding is locked in for the 10 years- as long as you activate by June 30,2016!!!

http://scott-ludlam.greensmps.org.a...-abbotts-lack-policy-housing-and-homelessness

http://scott-ludlam.greensmps.org.a...t-future-national-rental-affordability-scheme

 

[euro73]

The levels of fees you must pay and control you don't have i.e only certain property manager can be used at a non negotiable higher rate, plus audit fee and this / that and other make it much worse than your average body corporate deal which is at least transparent without hidden kick backs and inflated fees. There is LOTs of puff in this scheme and less control you have compared to regular stock.

Again - this is why choosing the right consortium , and dealing with the right people who know this stuff inside and out - is important. Employed correctly, you can do very very well with NRAS. But if you choose to look at this as a property transaction rather than an investment transaction, and then go online and shop for NRAS via one of the well known NRAS spruikers... you are playing Russian roulette.

 

[togi]

Hi euro

Am I right to understand that you are implying that Ethan could be one of these consortiums one has to be cautious with? The reason I ask is that I am about to buy an NRAS property through them, and I noted that you only had positive things to say about them in your post in the below thread.

http://somersoft.com/forums/showthread.php?t=69667

I would appreciate it if you could let us know of your current thoughts in regard to Ethan.

 

[barnet]

What if Gov dead line is not met for completion

I am looking into a property which is bought by someone but he wants to sell it and can transfer the contract to my name. However the catch is that the previous buyer hasn't included the condition that he only settle if the NRAS is applicable for the property by the time of purchase.

The building has 30 something NRAS out of 100 and is nearing completion. Gov has given 31st Oct as the extension for the completion of construction. However it seems that construction might even stretch beyond this date by the look of it's current status. I talked to the builder and he said he is very confident that he can finish by the new deadline.

As the property will not stand as an investment by itself without NRAS and no point buying in my situation just to have a hugely negatively geared apartment which you can't expect much capital growth being apartment and not that close to CBD. Builder said that the deadline was agreed by Giov upon the builders request and that's the time they wanted to borrow from Gov. I talk to NRAS provider as well and they said normally builder can negotiate a date to deliver the occupancy permits.

What do you NRAS experts think on this situation. Investment always come with a risk and I always wanted to minimise it so as a result never invested before. This is the first time I thought of buying and worst part is I have no protection for my self as previous buyer didn't include any conditions in agreement.

This is in round 3 allocation. In case if builder couldn't finish by end of Oct 2014, what will happen? There will be so many third of total apartments of the building to sell at the same time as owners become desperate to sell if they loose NRAS status. It can affect existing new apartment development in the area and price can drop and investors can loose significant money. Can this happen? Sales guys says builder can renegotiate a date with Gov. Can this happen? Please let me know.

 

[euro73]

Get the NRAS consortium to go back to Govt and seek an extension. Don't exchange until the extension is granted. Both Fed and State need to sign off on the extension, but they are being very very very ( did I say very?) flexible with extensions at the moment, as long as SUBSTANTIAL progress can be demonstrated . i.e they will ask for lots of photo's of the site, showing that work is progressing. Provided that is demonstrated, you'll get the extension. They want the incentives delivered.

Separately - if anyone has any completed/ very nearly completed stock in Sydney that they'd like NRAS incentives for- please PM me.

 

[redwing]

Hi Euro,

Any thoughts on the Debbie Downer post here as an update to the original

NRAS - Are you kidding

 

[westminster]

Hi Euro,

Any thoughts on the Debbie Downer post here as an update to the original

NRAS - Are you kidding

I have huge issues with the amount of blame people like to lay on a scheme with in reality it's participants and themselves which need to step up.

I can see a lot of responsibility lying with the PM who yes are part of the scheme but not THE scheme.

All of the issues they experienced could have happened with ANY type of tenanted dwelling but people like to put the anti NRAS card.

Greed and lack of due diligence get in the way of a good outcome in any IP transaction for many people. Why didn't they notice that it might not have been good market value at the beginning, why didn't they follow up on not receiving inspection reports, why didn't they have landlords insurance etc etc

All they probably saw was 'get $100k free from the govt' and the yield and looked no further.

 

[Colin Rice]

Hi Euro,

Any thoughts on the Debbie Downer post here as an update to the original

NRAS - Are you kidding

Sounds like an ill informed nutjob to me. She lost me when she said the properties are rented to people on welfare. From my understanding this is not the case.

She is a BA from what I can gather and has no ability to make a financial gain from the scheme. Funny that.

Im thinking if she writes blogs on a subject she is ill informed about then what else does she claim to know that is ill informed???

Ps. I have no affiliations with nor profit from the NRAS.

 

[Rolf Latham]

if we all followed our life responseabilities in work family society etc we would not need rules.......................................

ta
rolf

 

[Aaron Sice]

Myf - you hit the nail on the head in that last sentence.

 

[MTR]

The website is incorrect. The funding for NRAS - and by that I mean the entire 10 years funding for each approved property, is locked into the forward estimates. With the last of the incentives to be activated by June 30,2016 some of the incentives will therefore be paid for 10 years beyond that date. For incentives that were activated in 2011, their 10 years runs from that date. For incentives activated today, the 10 year clock starts today, etc etc...


The reason the 2018 date appears on the site is because it had been anticipated that delivery of some Round 4 incentives would not occur until 2017/18, meaning the 10 year funding would run to 2027/28 - but the Department has now advised all Approved Participants ( consortiums) that June 30,2016 is the absolute latest date for activation.... D Day, if you will. So any incentives not delivered/activated by that date will not be able to be activated. Full Stop. End of story. No exceptions.

So as I indicated in previous posts- still basically 2 years to purchase and settle on NRAS approved properties and the funding is locked in for those transactions.

If you sit through these two videos, you'll eventually hear Senator Ludlam generate a commitment to the forward estimates funding from Senator Fierravanti-Wells and the department heads he is grilling... it's documented evidence that the funding is locked in for the 10 years- as long as you activate by June 30,2016!!!

http://scott-ludlam.greensmps.org.a...-abbotts-lack-policy-housing-and-homelessness

http://scott-ludlam.greensmps.org.a...t-future-national-rental-affordability-scheme

Hi Euro,

Any thoughts on the Debbie Downer post here as an update to the original

NRAS - Are you kidding

Thanks for posting

I expect the investors who purchased this product in Sydney would be spitting chips.
I don't like it, no control, call me a ***** but that is too much risk for me

Mtr

 

[D.T.]

Thanks for posting

I expect the investors who purchased this product in Sydney would be spitting chips.
I don't like it, no control, call me a ***** but that is too much risk for me

Mtr

I don't see how its less control than your USA properties?

 

[MTR]

I don't see how its less control than your USA properties?

No comparison, same as our rentals in Oz, we don't have a government body telling us who we rent to, making the rules, setting guidelines, changing policies whenever etc . We both have control in oz no different in USA I have same control, I appoint a pm to manage on my behalf and I chose my tenant, I have a lease similar to oz lease

Plenty of investors don't just buy in their back yard does not mean they have no control or they don't manage the risk.

In USA they have what's called section 7 clients, never entered into this fiasco, but it may be similar to nrsa clients fit certain lower income profile


Mtr

 

[Rolf Latham]

In USA they have what's called section 7 clients, never entered into this fiasco, but it may be similar

Mtr

least you arent chasing Section 8s.

Only kids of the 50s and 60s will probably Kling to the relevance


ta
rol
f

 

[MTR]

least you arent chasing Section 8s.

Only kids of the 50s and 60s will probably Kling to the relevance


ta
rol
f

Rolf I got confused it is actually section 8 tenants as you mentioned, heard some horror stories with this group, promoted big time by the spruikers

 

[erwinsie]

Is it true with the nras payment delay and how long? Any nras owners can comment?