Price difference between NRAS and non-NRAS Property.

Hello, I am new here so if this was discussed before please forgive me.

I am searching for a NRAS property as IP. They seem very attractive, based on the figures I read.

I noticed something interesting.

This one is NRAS approved for 339k. 2 br Apartment.
http://www.realestate.com.au/property-apartment-sa-findon-110391049

Others, including townhouses, without NRAS approval statement, are 20k-60k cheaper:
http://www.realestate.com.au/property-apartment-sa-findon-112305319

Reading it carefully, I think the actual price for similiar apartments is < 305k, which makes the price difference >34k:
http://www.realestate.com.au/property-unit-sa-findon-112305307

Could someone tell me the reason for such a difference? Thanks in advance.
 
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theres lots of possible reasons why NRAS properties might be more expensive, the admin around meeting NRAS requirments might add something to the build price, or perhaps the marketing agents know about the tax benifits/grants etc and decide to capitalise these into the price and take a larger commission/profit.

In the end, these are asking prices, what they actually sell for might be quite diferent. There might be a diferential, or there might not be. A lot of people recomend not buying an investment just for the tax benefits, so make sure your investment stacks up in other ways before calculating the effect it will have on your tax etc. Note, resale value for NRAS isnt really tested yet, and as they can only be sold to investors, this might limit the market, and perhaps the price a little (theres no emotional wannabe homeowners bidding the price up)....
 
And, Welcome! by the way... You can also use the search button and see where else NRAS is mentioned in the forum.
 
Thanks.

Thanks tobe for the explanation and greeting. It draws a more realistic picture for NRAS properties.

I found the same NRAS propert from another NRAS agnet and the asking price is the same. (339k)

For people who might be interested in searching for NRAS properties, here is a link:
http://onyx.net.au/property-catalogue/

Cheers,
Sam
 
there should be no price differenc,e the product is the product regardless of the tenant, unless you want to start talking cap rates and commercial lends based on the tenancy rental agreement as per a factory / retail / office loan - resi is resi and anyone charging more (or paying more) for NRAS are doing themselves a disservice
 
Don’t buy if a NRAS property is more expensive than a similar non-NRAS one in the same area. You buy the property, not the NRAS scheme (or FHOG, stamp duty exemption... for that matter).

People often forget that NRAS buying is no different to normal buying i.e you should always do your DD through comparables.

Price can be negotiated even for NRAS. I've done it at least once.

The law of supply and demand works in any market including NRAS. Maybe the seller felt that the demand for their NRAS properties is greater than for non-NRAS so they jacked up their prices.

Note, resale value for NRAS isnt really tested yet, and as they can only be sold to investors, this might limit the market, and perhaps the price a little (theres no emotional wannabe homeowners bidding the price up)....

This is incorrect. You can opt out of NRAS for any reason e.g. to sell it on the open market or use it as your PPOR. Obviously by doing so you’ll lose a portion of the grant in that tax year.
 
Thanks Tobe. I enjoyed reading the thread you pointed. Was euro73 you refer to as the NRAS specialist?

Yup,
I cant vouch for his credentials, or possible bias. This is an internet forum remember.... You can private message him, or email him, he may not be on the forum to see this discusssion and add his view.
 
Some explanation

One agent told me some NRAS properties come with "turn-key" solution which is worth ~30k.

I think it is reasonable for new houses. I am not sure about new apartments. Does it apply?
 
NRAS Incentives cost no more than 5 or 10K for a developer to secure, and there's really no excuse for a developer to jack prices up on NRAS stock. In many cases the developers have paid less than 5K to secure the incentives.

The issues around valuation inconsistencies continues to revolve around a combination of inflated marketing fees, conservative valuers, and developers doing what anyone in a capitalist market tries to do- get as much as they can for a product they perceive to carry more value.
 
This is what one of the marketing guy told me...
"
Prices are non-negotiable as they are very well priced, so one of the key components of your decision making process is to ‘get a discount’, then I suggest that you forget about NRAS and look on the second hand market for fixer uppers and renovator’s delights as their vendors will be much more obliging and represent better value for money according to your budget and purchasing criteria.*If however, you wish to look at something new and high quality, you must be prepared to pay fair price as listed and I can help with that.
"
When I showed him similar properties advertised for less in a different development then they throw the comparing apples with apples clause!
Seriously how many different apples are there? :)
 
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