In 2008 the National Rental Affordability Scheme (NRAS) was launched in Australia. The NRAS is designed to reduce the national housing shortage by producing more affordable rental homes in major cities and surrounding areas.
With incentives directly aimed at the investors buying these rental properties, the NRAS legislation stipulates that rebates will be offered to property owners if they reduce their tenant rental amounts by approximately 20%. This reduction in rental prices will effectively provide an estimated 50,000 more affordable homes by 2014, without leaving the property owner at a disadvantage.
If rental amounts are reduced by the suggested 20%, the property owner will receive $7,143 from the Federal Government and $2,381 from their State Government, totalling $9,524 in incentive payments per year.
The National Rental Affordability or National Rental Assistance Scheme eligibility is determined by the applicant tenant's income. Tenants can earn anywhere up to approximately $125,000 per annum with families, over 55s and working members of emergency and community services such as teachers, nurses and police officers deemed the most eligible targets for the scheme.
When looking to buy an investment property, it is a good idea to get as much NRAS education as possible as the tax free incentives allow for a greater return on your investment on a yearly basis. Money Choice can help you understand the requirements of the NRAS when investing in property, assess your eligibility and help to find the best property market for your investment opportunity, and develop your investment into prosperous revenue for years to come.
If you're considering investing in real estate, or are looking to grow your existing portfolio, Money Choice offers professional expert services to help you make the best investment possible. Delving into the NRAS and presenting you with the most advantageous market choices, your real estate investment is certain to grow thanks to Money Choice and the NRAS.
For more information please read the articles below or to speak to one of our financial experts contact us today on 1300 625 626:
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