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considered private lending? solicitors funds?
paramount group, they are also the property managers.
Yes its their responsibility to ensure the tenants is eligble and maintains their eligibilty.
In Tas 20% is the rent reduction
When one hears affordable housing the perception is poor quality houses, located in out of the way places that only scary people will rent.
This is definetly not the case in Tas.
in fact the homes Ive bought are built to a much higher std than other investment property I have seen- double glazed, heat pump hot water, universal design, etc etc .I bought a house in estate with seriously good water views iand 2x 2 bed units 1 house back from golf course estate,
The majority of tas are eligble as tenants becuase the income criteria is set nationally and incomes are lower in Tas.
The properties I bought are at reg valuation.
I just checked an old thread and found some one else wuzziemoo bought one as well and posted thread on this site about it.
suppose it depends on what you feel you need as a return
Ive done renos, subdivision, and while some have been spectaculary profitable i cant ever remeber buying with such certainity nras homes especially in tassie because its effectively enough passive income!!! that ones doesnt have to stress about the uncertainity of havingto do renos subdivision etc. Now if one likes doing that thats a differnt matter but puerly on the numbers
Thers a 7-8% rental yield plus
highest capital growth over the past decade of all capital cities in aus ave more than 12%
so if that continued thats a starting 20% return on brand new property (zero maintenance) with cheap cheap entry $240k
Im happy if capital growth is only 5% its still 12-13% return, for doing nothing and fed govt is guaranteeing large part of it and Im helping the community so its a triple bottom line.what ever you choose make sure you take advice from appropriate people, model someone successful after all success leaves clues
try nras homes in tassie
they oiffer 7-8% rental returns,
capital growth was highest in past decade of all cities in australia
i bought 2 units $470k so cheap entry
for what its worth Ive stumbled into Tassie.
I bought 2x 2 bed units for $475k returns $700 nett (most of this is tax free) . Its under the nras scheme. Residex forecats capital growth of 6% while this may appear to be conservative Ive seen concistently 10% plus over the past 5 years. There was a recent article in paper says hobart had highest capital growth of all capital cities for past decade.
Im happy with starting rental return of 8%, ( rent is indexed to cpi, plus i get capital growth, brand new property so no maintenenace, good tenants cos its cheaper than any where else they can get by 20%, this alos improves tax losses but is still cf positive becuase the govt kindly gives the subsidy tax free and the fed govt is guaranteeing the majority of the rent for 10 years
ps hobart dam is 98% full so we dont have any issues with wate but peak hour is now 2 changes of traffic lites which is not good!!!
hi rob
your stuff sounds great
when u say freehold title presume this means purchaser just buys house as per normal?
What security does purchaser get to ensure they get the nras incentive for the next 10 years?
Presume property owner signs document that allows approved property manager to have access
Ive bought in tas.
The fed govt has opened up some great opportunities in Tassie and the entry level is cheap starting from $240k.
I paid $440k for 2x 2 bed duplex (brand new) which has gross return of $1,070 pw and govt guarntees portion of rent for 10 years!!
For $240k I can buy a 2 bed home that has gross return of $539 pw again with fed govt guarantee for 10 years for portion of rent
Not many people know hobart has highest ave capital growth growth for past decade of all capital cities averages 14% pa!!!!
Im currently putting together syndicate to buy 40x 1 bed units in retirement village for $200k ea that will return $575 per week!!
nras properties were approved by the fed govt in cosultation with the state govt under rounds 1 and 2.
The feds changed the scheme so that in round 3 they only want applications of 1,000 (or more) dwellings or receive applications from not for profit organisations.
i just bought nras home in tassie for $425,000 that returns $511 per week. and a 2 bedroom duplex for $240,000 that rents for $390!!.
Not many many people lknow Hobart has the best capital growth of all capital cities in Aus in last decade!!! and was #2 last year.
BTW I think learning financial intelligence and stop giving money to the poor is a MUST!!!
Unfortunately whether we agree or not the Govt has already decided to use tax payer money to make rental housing more affordable to low to middle class Australians. We can debate forever whether a future govt might or might not remove the subsidy.
The real issue is something has to be done, the Govt thinks ( rightly or wrongly) this will assist and obviously it will assist tenants at least for the next 10 years. ( or until the incentive is withdrawn!!)The homes I saw in Tas were "normal homes" rented to normal people in normal suburbs, could just be the model works better in Tas due to lower capital values and lower wages there makes for higher calibre of people capable of being eligibile.
Gross return of 7.5% on $250k pp on brand new home with a 10 year subsidy from Govt is not going to make me do cartwheels in the street but for the reasons above looks better to me than what else Ive seen.
I guess it all comes down to what our beliefs are.
7.6% on $250k purchase price in Hobart Tassie
the nras homes in tassie ive seen are first rate quality close to services and offering 7% plus returns. I dont know about other states but I think the opportunity of getting a guarantee from the govt in return for giving up 20% of rent is a no brainer.
there is a company offering brand new homes in tassie for $450k with govt guarantee for 10 years returns $700 per week.
I just bought a property in Tas with an NRAS incentives. The return is $415 per week ( including NRAS of $167 pw) for a $290,000 investment.
Does anyone know how to calculate what the tax free incentive is worth in gross $$
