I have been recommended an NRAS property in Andergrove…. I know nothing at all about the region of Mackay and am just starting my research. I have read a few threads on here and it feels like a great area but if anyone has any comments on Andergrove and NRAS specifically I would love to hear it!
I have heard via the forums that NRAS properties are hard to finance and so will be hard to sell- not good for investment property.
Also they are only for tenants, not for people to buy as a PPOR- also not a good thing for investment property if you are searching for capital gains (as people who are buying a PPOR will pay a bit more to secure a property they love).
After considering these things, I would not buy a NRAS property. Although some people have and are currently happy with the decision so I suppose it depends what you are looking for.
Cheers,
LukeGood point Luke – I hadn't considered the PPOR aspect of the property. Having said that I understand the owners can opt out of NRAS along the way. From memory it is an annual opt in type arrangement.
The key for me is that the property must fundamentally stack up without tax credits. I have seen a few NRAS properties marketed and the over-riding message is the $100K tax credits. Little mention of the fundamentals – so, don't be seduced by the tax credits associated with NRAS.
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