Good Day Moorey,

So you have other properties & accounting for all actual costs?

https://www.dss.gov.au/housing-support-programs-services-housing-national-rental-affordability-scheme/about-the-national-rental-affordability-scheme-nras

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Amendments to the NRAS Regulations to create protections for Investors
The Australian Government has legal arrangements only with approved participants and these legal arrangements do not extend to dealings that approved participants may enter into with third parties, such as individual investors, tenancy managers or business partners. Investors should undertake their own investigations and seek independent financial, legal and taxation advice to ensure that they are satisfied that investing in NRAS is the right investment for their individual circumstances.

In 17 November 2017, the Department implemented amendments to the NRAS regulations to increase the protections afforded to investors within the Scheme.

The amendments introduced a power for the Secretary of the Department of Social Services (or her Delegate) to transfer an allocation attached to an approved rental dwelling from one approved participant to another, if certain grounds exist. These grounds include, but are not limited to, instances where approved participants are not passing on the NRAS incentive to the NRAS investor (where there is a contractual arrangement to do so) within a reasonable time of receiving the incentive, or where the actions of an approved participant have contravened a consumer protection law in relation to the NRAS allocation. The transfer can be initiated by the Department or at the request of an investor.

In November 2018 the Regulations were further amended to strengthen investor protections within the Scheme and to improve administrative functions of the Department under the Scheme. For example, the Regulation amendments introduce three new grounds for transferring to a new approved participant and improve the Secretary’s information-gathering powers when conducting transfers.

More information on the NRAS Regulation amendments can be found at the information sheets for investors and approved participants.

Approved Participant and Investor Relationship
Prior to the first round of amendments to the NRAS Regulations introduced in November 2018 the NRAS legislative framework did not recognise issues relating to the commercial relationships between approved participants and NRAS investors.

Following the Regulation amendments introduced in January 2018 the Department raised the visibility of NRAS investors within the Scheme.

While the amendments to NRAS Regulations do increase protections for investors within the Scheme the amendments do not extend to interfering in private, contractual arrangements between approved participants and third parties such as investors or property managers.

NRAS Incentive
NRAS homes must be rented to eligible tenants at a rate that is at 80 per cent or less of the market value rent and comply with all conditions of allocation in order to be eligible for the NRAS incentive annually. The NRAS incentive is paid per dwelling, and is indexed each year in line with the Rents component of the Consumer Price Index. The NRAS Incentive is indexed according to movements in the Rents component of the Housing Group Consumer Price Index for the year, December quarter to December quarter as at 1 March, using the weighted average rate of eight capital cities housing component, and is effective from 1 May.

The Scheme offers annual incentives for ten years. The two key elements of the incentive are:

an Australian Government incentive per dwelling per year as a tax offset or direct payment
State or Territory governments may offer approved participants a contribution per dwelling per year in direct or in-kind financial support.
Generally, the NRAS incentive is provided to the approved participant in the form of a refundable tax offset (RTO). However, a cash payment can be made if the approved participant receiving the NRAS incentive is an endorsed charitable institution. The current incentive payments are available on the NRAS incentive (indexation) page.

NRAS Tenants
NRAS rental homes are available to low and moderate income Australians – people who may find it hard to pay market rental prices. The eligibility of tenants are tested against household income thresholds which differ depending on the household composition.

The Department requires all persons who are tenants of an approved rental dwelling to have their income included as a member of the one household, in accordance with the income limits.

New NRAS dwellings entered the Scheme up to 30 June 2016 and will continue to be rented under the scheme for up to 10 years from the date of commencement. As there is considerable demand for these dwellings the Australian Government is unable to guarantee that any tenant will be able to rent a dwelling developed under the Scheme.

The approved participant or their nominated tenancy managers select tenants. Queensland tenants must also register with the Queensland Government’s One Social Housing Register.

It is a condition of the Scheme that all approved participants ensure their dwellings are rented to eligible tenants in order for them to receive an incentive. To find out whether you are eligible to rent an NRAS property, how to apply to rent an NRAS property and your rights as an NRAS tenant, visit NRAS Tenants.

NRAS Conditions of Allocation
The NRAS Regulations sets out the mandatory requirements, called ‘conditions of allocation’, that must be met each year in order for an approved participant to receive the NRAS incentive.

The Regulations were made in 2008 and have always required that approved participants in the Scheme only receive an incentive where they meet all conditions of allocation in an NRAS year (defined as a period beginning on 1 May of each year). The Regulations requires all conditions of allocation to be met for an incentive to be received.

The following mandatory conditions must be met in order for an approved participant to receive an incentive in respect of an approved rental dwelling:

the dwelling must not have been lived in as a residence prior to the dwelling entering the Scheme, or the dwelling was unfit for anyone to live in and since the day it was deemed fit for living in, it has not been lived in as a residence between that day and the day the dwelling enters into the Scheme.
The dwelling must be tenanted by a tenant or tenants as prescribed by the Regulations
the rent charged must at all times during the year be at least 20% less than the market value rent for the dwelling;
the dwelling must not be vacant for longer than 26 weeks in an NRAS year or vacant longer than a continuous period of 26 weeks across two NRAS years;
the approved participant must lodge Statements of Compliance for the dwelling with the Department in accordance with Regulations;
each dwelling must comply with the landlord, tenancy, building and health and safety laws of the state or territory and local government area in which the dwelling is located;
the approved participant must comply with all special conditions;
the MRVs must:relate to the market value rent for the dwelling on a date within the permitted valuation period, and
specify the date to which the market value rent relates;
the approved participant must lodge MRVs for the first, fifth and eighth years of the incentive period which will apply as of the first day of the incentive period, and as of the first day of the fifth and eighth years of the incentive period, within the permitted valuation period; and
the permitted valuation period for the MRV begins 13 weeks before and ends 13 weeks after the day when the dwelling is first available for rent, or for the fifth and eighth years of the incentive period, 13 weeks either side of the anniversary of the first available for rent date.”

I do breakdowns with clients, you could if this was your only concern just as easily call them.

• This reply was modified 4 years, 3 months ago by  Jaxon. Reason: misspell

Good Day psproperty,

So technically they are different in the sense refi is restructuring a loan.

Equity release may be many terms or means to release the equity.

From my understanding its more an overview of a way to release equity without selling as per the below structures

-Reverse Mortage

-partial sale

-sell FV of property

-Line of Credit (may not be deemed equity release, but similar)

Wish you all the best!

Kind regards

Jaxon Avery

Disclaimer: This is general information only & may not be right for your situation or circumstances.

Great info.

Good Day Clancyfish,

Terry’s points are great.

By the sounds, I imagine the issue is the pension is not enough>? which should be around $711+ per week for a couple?

Let’s assume you can’t find any way to sustain your current situation, then you incur lots of fees in the sale, you would grant yourself the possibility however of lowering expenses & creating a larger cash balance to draw an income from.

Although yes this would incur costs as an example it could leave you with

-no debt on your new home

-$869 per week income (full pension + draw down) or more depending on actual situation etc (this is general)

and the capacity to add value to your home (*like you said you may)

Now to clarify this is not taking into account your specific situation & it may be totally wrong for you.

Kind regards

Jaxon Avery

Disclaimer: This is general information only & may not be right for your situation or circumstances.

I deal exactly with this for clients as do other advisers, please understand the pro’s con’s & have a professional who helps you.

Wish you the best!

Good Day Ben,

Agree with Richard in relation to the above answer

although the above is very simple, it alludes to some of the bigger questions surrounding your situation & that there may be multiple things that can be done to enhance & clarify multiple aspects of your situation your purchase etc.

All of this will help you better understand where you are, where you want to go & create a map to get there.

If you go through some of the success stories on here I am sure it will provide massive value!

Wish you all the best!

• This reply was modified 4 years, 4 months ago by  Jaxon. Reason: add more

“It is expected that the relevant State or Territory Revenue Office will distribute the $25,000 grant directly to
the applicant.”

Sorry for not making that clear Steven.

yeah so simply (it is not every person in that role)

but a lot of these styles of companies are just sales agents who just want to do a good job & generally may not even understand its firstly not in the best interest of the client comparatively. (to other options)

I honestly just feel the value most of these offerings generally are not worth it & not the returns/growth/etc discussed & they often use best-case scenarios & try get a cut every step of the way.

I don’t think this is good or bad its just what I have seen from several of these companies and given the right person they can find value above costs.

I just rarely have ever seen it.

Hey Steven,

I presume you did not go forward?

It’s sad how many great presenters/sales agents are out there doing their part to backsteps Australians reach their financial goals by promoting them to reach their financial goals/great deals.

Mate, I am biased as a financial adviser as I understand the value that can be provided but I would say

-ever dollar saved is two dollars earnt

-every dollar investment is ten dollars earnt

Now the above is very broad and general but I can’t stress enough how much compounding, correct structuring & good advice can completely alter what you can achieve.

There is so many strategies that can assist to reach goals but understanding the pros & cons of each will better equipt you to understand what makes sense for you.

when I speak with clients one of the most important things is understanding your current financial position & then the end goal.

Once you can establish this & actually lay out an overview plan you can start to work on the next few steps to take to get closer to that end goal.

(once again, this is incredibly brief & and overview but if you understand why your paying for a seminar or buying a certain asset & the pros & cons of it & how it’s reaching your goals you’re going to be comparatively so far ahead of someone who just gets something because it seems like a good idea at the time)

I think one of the lessons from even entertaining such an idea is having people in your corner who have your interest at heart above just profit to explain the risks of such schemes. (although sometimes things appear valid & turn out not so)

I wish you the best mate & hope you find people who want to benefit from you succeeding not looking at profiting of a one client transaction.

Good Day Manish,

1. Yes can be possible (may very expensive to break & not make sense), ask the lender your with & they should tell you the associated costs & ask the new lender?

2. each product (loan) can have different options/fees/etc as usually fully disclosed in its PRODUCT DISCLOSURE STATEMENT (PDS)

so you need to understand each product you are looking to get into.

Enjoy your week!

Good Day Liz,

All the questions you have are very subjective but I would say you should thoroughly review both potential options & the potential outcomes of both, the risk etc & that should give you a better idea.

or seek professional advice.

wish you all the best!