A government initiative that puts real money into Investors pockets
Allowing investors to move from negative to positive cashflow for up to 10 years!
The following information was provided by one of Prestige Group's valued Property Partners, John Hopkins.
For further information on the NRAS Scheme, or to view NRAS Approved properties, contact us on 1300 732 595 or email firstname.lastname@example.org
There has been some confusion about the National Rental Affordability Scheme, commonly referred to as NRAS.
What does NRAS mean for the property investor?
At its core, this government initiative would mean for many property investors that, after tax, they would be about $119 per week better off than investing in an identical property without the initiative attached. Over a ten year period, this would equate to a significant financial benefit for the client.
Putting aside some of the confusion, the main factors stopping us recommending the initiative in the past firstly had to do with some price issues, and secondly, the NRAS property allocations had been applied to property that in our view, was not prime.
In regard to the price, two things were happening; firstly, some of the providers appointed by the government to deliver the initiative were charging up to $35,000 for each single property allocation, and in other situations the developers of the property were significantly increasing the price of their properties over market value.
As far as we are concerned, with regard to quality property, it is essential to purchase quality properties; second best is not an option. In the case of some of the properties that were being presented with this initiative, they were even a long way from second best.
I am thrilled to tell you we have overcome both of these hurdles, which means our mutual client's will now have access to that real benefit I spoke of...
With the initiative attached, for a purchase price of $382,000 and based on a 31.5% tax rate, the investor would have an after tax positive cash flow of $29 per week. This is a great development and these are terrific apartments...
This is an excellent initiative with a quality property for our mutual clients to take advantage of.