Property investment and the NRAS

Ian MillerInvesting in Property, Investment property advice, Property investment advisors

Image depicting property investment opportunity in the NRASThe National Rental Affordability Scheme (NRAS) is a bipartisan incentive between Australian Federal and State Governments that provides tax-free cash incentives to property investors, while addressing the issue of supplying affordable housing. These incentives (currently $9,981per annum) are paid to investors who by eligible NRAS properties. Payments are received for a minimum of ten years and are indexed annually for rental CPI growth.

If you are currently looking at property investment in Sydney (or, indeed, elsewhere in Australia), now is the perfect time to consider buying an NRAS property and leveraging your investment capital.

Of course, like with any investment decision, we recommend talking to a professional about your unique situation — including considerations like the best home loans for your needs, the best suburbs in Sydney to currently own a rental property targeting high yields, income protection and other insurance products to protect your investment, and to assess your overall financial security.

As a general rule, key benefits to investors buying an NRAS property include:

  • Improved rental yields;
  • Minimum annual payments of $9,981 in National Rental Incentives for each rental dwelling will further improve rental yields over conventional residential investment properties ($100,000 Plus Tax Credits Over 10 Years);
  • The National Rental Incentive is Income Tax-free, indexed to the rental component of the Consumer Price Index (CPI) and is further complemented by existing taxation arrangements, including depreciation;
  • The scheme provides a medium-term, secured income stream for 10 years; and
  • This type of property investment is also a cashflow-positive investment.

Interested? You should be!

If you would like to know more about NRAS or need help looking at how it could impact your personal situation and investment decisions, including finding a suitable NRAS investment property, call Full House Finances today (02) 9664 4115.