Forum Replies Created
- Derek wrote:It must be late at night – but I cannot see how the 'builder issues' are specifically related to NRAS.
Reading both comments it would appear as these are 'bad builder' matters and not NRAS matters.
As a rule of thumb the attraction with NRAS is the tax cresdit/deduction which is used to market the improved cashflow for such properties. As I have stated on a number of occasions and tax benefits should be seen as supplementary to good property choice and not as the reason for investing.
I have seen some pretty lousy NRAS properties and at the same time I have seen some reasonable offerings.
As an investor you need to really understand how it all works. How are is the $9500 paid? Who manages the property? What leasing fee to they charge? What is the pool of tenants like? How does the local area stack up from an investment point of view? How is the state government 25% contribution paid/earned? Do you intend using PAYG variation for your income tax credits? (When I last looked – you can't). What sort of finance are you looking at? Which bank? What LVR is possible?
Many many questions.
Yes Derek you are right it is a bad builder story. But it is a bad NRAS approved Queensland builder story that was the point. There is no option when building an NRAS property to use a well recommended builder. All you get is a take it or leave it approach from agents and sales events. I would fore warn anyone to thoroughly check the builders history before taking the NRAS investment leap of faith. Do not presume as I did that somehow the government had done its homework on the NRAS builders.
Clearly in my case they failed and even after contacting federal ministers resposible for the NRAS and they said we cant help….go to court to seek corrections to your building work. That's great if you have got $30k spare ….. if not put up with being
ripped off
Be well aware that the NRAS may well be a government initiative but it is NOT backed in any way by the government.
In my experience of building an NRAS duplex off plan in QLD I was very clearly mislead by the builder (who according to the BSA built nearly 200 NRAS houses last year). The contract plans I signed changed significantly during the build and not one variation was sort by the builder. It also took over 13 months to build my duplex and there are many other disgruntled investors who also have carried the cost of this slow NRAS building process in the same housing estate
If you do buy an NRAS property do not buy off plan, buy one that is already built or not far from practical completion to minimise your holding costs
