These days’ people are talking alot about the investing under NRAS scheme. For those who do not know much about it, here is a brief. NRAS is the acronym for National Rental Affordability Scheme and has been planned by the government of Australia. It is a scheme where the investors are provided with incentives in the form of tax. This is for the investors who believe in providing housing at prices that are lower than the market rate. The scheme is supposedly going to run until 2015. The tax incentives will be provided to the investors for a period of 10 years.
Properties under NRAS financescheme are one of the most beneficial investments one may look for. The process for the same is very easy going and requires approval from the government. After the approval stage, the properties are hired for low rates, which are at least 20% below the normal rate. The tenants for the property are professionals like firemen, policemen, nurses and doctors. In order to make sure that the property is in safe hands, government adds a restriction for theminimum and maximum profits.
Conditions For A Property To Be Eligible For NRAS
- The property has to be new and should be approved according to the standards of NRAS.
- The tenant should be eligible and approved by NRAS standards.
- The tax incentive for the investors and the rent for tenants are liable to increase each financial year.
- An individual or development should not possess more than 20 or 30 percent of NRAS properties for sale.
- The NRAS agreement can be broken only by the investor not be the tenant.
Cautions For NRAS Properties
There are a few precautions that one has to look for before investing in NRAS property. Firstly, the cash flowcould be restricted in case you have not lodged an income tax variation. So talk to your accountant before going for investment in NRAS. There are different leasing models under the scheme, which is why you should not expect the same dividends from them. If you want high incentives, then look for leasing models with better outputs. This is especially important when the investor is looking for long term profits.
Due to some lapses, the government at times fails to do justice to the norms that are actually required to be followed in the scheme. There are companies that have nothing to do with NRAS, but give fake impression about the same. There are fake company websites and domain that fool around the interested investors.They lay an impression that they work for the official company or are a part of it. However, a few companies do leave a disclaimer stating that they are not a part of NRAS, instead are a private company.
Rather than going for the misinformation that is communicated via fake sources, consult the genuine offices.If you are looking for investment property advice, then NRAS is a go but only if they are a part of genuine schemes and returnsgood profits.
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