Nras otp

Greetings fellow members,

My first post here so please be patience with me...

I've been reading a bit lately on this forum particularly in relation to NRAS. I've been planning to buy NRAS OTP property and was wondering what conditions would be good to be included in contract to secure myself from unforeseen delays and possibly loss of NRAS incentive from government which I believe is pro-rata. Next year is the final year of NRAS and therefore I want to put some clauses in contract which will mitigate any delays if the delivery is not made in time. The property is going to be ready June/July next year. Appreciate any suggestions from experienced investors on this forum.
 
Greetings fellow members,

My first post here so please be patience with me...

I've been reading a bit lately on this forum particularly in relation to NRAS. I've been planning to buy NRAS OTP property and was wondering what conditions would be good to be included in contract to secure myself from unforeseen delays and possibly loss of NRAS incentive from government which I believe is pro-rata. Next year is the final year of NRAS and therefore I want to put some clauses in contract which will mitigate any delays if the delivery is not made in time. The property is going to be ready June/July next year. Appreciate any suggestions from experienced investors on this forum.

Good idea about the clause - pretty sure it needs the NRAS allocation needs to be activated by 30 June 2016.

You can have an activated NRAS allocation without it being rented for 13 weeks in a year i believe before some of it begins being pro-rated out.

Therefore latest it could be delivered is a couple months after June 30 - but you'd probably want it done before that deadline.

Euro73 will know the finite details... :)
 
True, however the ones which were passed in phase 4 are still in progress and absolute deadline is 30th June 2016 to activate them, I believe.

That is correct. If the OTP is finished after that then you will receive less than 10yr, so if it's 6mths late you will receive 9.5yrs of incentives.

I don't believe there is much you could put in the contract to mitigate that though, depending on how big the OTP project is.

I'd contact Euro73 on here who is the NRAS guru before buying any NRAS to make sure you understand all about NRAS and if the project is a good one.
 
I don't believe there is much you could put in the contract to mitigate that though, depending on how big the OTP project is.

Noted. Any other condition to put in from normal OTP point of view that you can think of?

I'd contact Euro73 on here who is the NRAS guru before buying any NRAS to make sure you understand all about NRAS and if the project is a good one.

I certainly will since he's my mentor and source for NRAS property :). He will guide me no doubt. Just wanted to have suggestions from other members. I mean not just NRAS related but what are the conditions one should put in contract (or nice to have) when buying normal OTP property?
 
NRAS cals

Would you purchase the investment property without an NRAS incentive?????

If not then don't buy it. If yes then go for it.

NRAS is a gamble a bit like playing the lottery, good luck.
 
Would you purchase the investment property without an NRAS incentive?????

If not then don't buy it. If yes then go for it.

NRAS is a gamble a bit like playing the lottery, good luck.

Very good suggestion, I shall do some number crunching and see how it stack up without NRAS incentive.

I do realise there are certain components to whole NRAS property investment process that are not in our control and there are stages where investors can/do get hit by premium and what not. So yes, there is some truth in what you're saying, not denying at all. However, it is important to do DD and acquire property at right price etc. and that is where euro73 comes in, I have faith in him and his method of NRAS setup.

The numbers do stack up so I'm reasonably sure that I won't make loss in the end but then again anything could happen, it is a risk that I'm taking. In saying that, there are risks in non-NRAS properties as well, specially OTP ones.

Fingers crossed.
 
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