NRAS Frequently Asked Questions
The National Rental Affordability Scheme was developed in 2008 under the Labour Government. $1 billion has been budgeted to build 50,000 NRAS properties nationally.
Two reasons. Firstly, to increase the supply of new rental housing directly into the housing market. Secondly, to help low to middle income earners obtain affordable rental housing by offering tax incentives to property investors.
Property Investors purchase a brand new home which has been NRAS approved by the Government.The investor agrees to reduce the rent by 20%. In return, the Federal and State Governments will give an incentive of $10,661 (2014-2015) tax free each year.
The incentives are paid to the owner at the end of the financial year with $7,995.75 (2014-2015) as a tax offset which comes in the form of a certificate from the Federal Government and $2,665.25 (2014-2015) cash from the State Government paid in September.
Approval of NRAS properties is carried out by the government ensuring they meet strict criteria such as proximity to schooling, transport, hospitals, employment etc – all the criteria you’d be seeking as a property investor looking for capital gain.
Property options vary in type (house & land packages, townhouses, apartments), suburbs and price points (most between $250k – $450k). Property Road SA has access to the widest range of properties and can, in most cases, match an investors criteria up with a property.
The property is NRAS guaranteed for up to 10 years. BUT you can opt out or sell the property at any time.
Tenants are low to middle income earners. Eligibility is based upon a variety of factors including the number of dependent offspring and whether living in a defacto relationship etc.
The income eligibility levels are quite liberal. This is not social housing. NRAS is geared to key service industry workers (teachers, police officers, fire fighters, nurses etc) and over 55’s and families. Property Road SA can show you the eligibility guidelines if you would like further details.