For many people, trying to find a spare $50 per week is just out of the question and that means the chances of them investing in property just won’t happen. Most Australian’s have dreamt about taking the plunge and buying a property but in the end they put off the purchase through lack of affordability. Well if this is you listen carefully because now the dream may become reality thanks to a new initiative introduced by the Australian Government.
They’ve introduced a National Rental Affordability Scheme national rental affordability scheme specifically designed to help middle income earners obtain more affordable rental-housing. This is done by offering tax-free incentives to property investors.
The government has committed $1 Billion to build 50,000 houses Australia wide which will help this group of income earners with affordable housing. The programme has been named the National Rental Affordability Scheme or abbreviated as NRAS.
There are a few elements of NRAS that must be understood.Firstly, the homes must be built by a recognised builder who has been approved by the NRAS scheme. As part of the contract to build, you are also required to enter into an agreement with the government for 10 years.
As part of the scheme you will be required to discount your rent by 20% of the market value for that property. For example if the property you purchase has a market value of $300 per week you will have to reduce the rent by $60 a week ($3120 per year) and charge the tenant $240 per week.
In turn, the government has agreed to pay you, the investor $10,661 per year, which will be increased each year in line with CPI.
Now the big plus here is that the $10,661per year is TAX-FREE as part of you helping out with supplying a property for affordable accommodation. That equates to around $120,000 tax free over the next 10 years.
At Total Investment Property Solutions, we are well aware of the NRAS and strive to make it beneficial for the clients who we believe will benefit from this form of property investment. Through investing in an NRAS property with TIPS, you can be well aware of the potential benefits and shortcomings of your investment, and have the knowledge and expertise of the TIPS team to give you the best opportunity for success. For more information on NRAS properties or other investment opportunities, contact TIPS today about building your property investment portfolio.
Do you have equity in your home that you could use to purchase one of these properties? Wouldn’t it be great to potentially build massive wealth without having to put money towards it? Would you like around $120k tax free over the next 10 years from the government? If the answers yes, don’t hesitate. Fill in the online form below or call us now to find out how you could become part of this exciting new scheme.
Let Total Investment Property Solutions secure an NRAS qualified property for you today!
The NRAS information given may vary depending on the builder and the property manager assigned to oversee the property. Fees and charges will also vary from builder to builder and more accurate figures will be given once a property has been chosen. All figures used in the table are to be used as a guide only and will change according to each individual property. Please check with your mortgage provider to confirm lending criteria, terms, fees and any conditions that will apply with the NRAS scheme. The material on the Web Site is presented as general information only.
It is not intended as legal, financial or real estate advice and must not be relied on as such. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions.