Depends on who you listen to, and to quote a long haired hippy folk singer of the 60’s – “the times they are a changin”.
There has been a great deal of conjecture surrounding the future of NRAS nationally with a few suggesting that this may well be it for private investors going forward. Whilst this seems unlikely, there is no doubt that we will see a reduction in stock levels for this year (Round 5) and beyond.
The most common accepted theory is that there will be a lesser amount of house and land type property options being made available in typical “greenfield” sites and more higher density/inner city type stock available for potential investors.
If it is being scaled down then it truly is a pity, mainly because there is now a much better understanding in the community of how NRAS works and a lot of the misinformation being published has been disregarded and investors are seeing NRAS for exactly what it is – an incredibly attractive government scheme designed to assist moderate income families with rental stress, while financially rewarding astute investors for assisting.
The good news is there is still a bit of residual round 4 stock available although purchasers need to act quick as a condition of these properties is that they must be completed by June 2014.
We have also seen the release of a few early Round 5 properties in South Australia which to date seems to be inner city apartments – supporting the argument of more higher density NRAS stock hitting the market.
It is too hard to read which way the government will run with this but all of us in the industry are hopeful that NRAS will continue, as it really does assist everyone from tenants through to investors whilst providing a massive stimulus for the building industry in the process.
Let’s face it – we have never seen an investment incentive as attractive as this from the government – a cash positive tax free investment in residential property with unprecedented rental demand.
If you have been clever enough to buy one – now is the time to congratulate yourself.
If you are still thinking about it – call us to see what is available before its all too late!
General Manager – Property Road SA