That’s not a very fair comment …. I own 10 NRAS properties, have sold many many more and have just had a number of mine and other clients, re-valued.

Some examples

2 bed Townhouse in Gregory Hills, Sydney – purchased 8 months ago for $370K. Re-valued at 460K. 100% of the 6 townhouses are NRAS

2 bed Unit in Elanora Heights, Sydney -…[Read more]

Same goes for Negative Gearing and CGT. If we defer investment decisions based on what a Government may or may not do to a particular piece of tax legislation ( which is what NRAS is- a tax credit) no one would ever invest in anything. I’d also add that whenever legislative tax changes occur, it is almost universally accepted that they…[Read more]

1. Is there anyway we could use property to reduce our CGT once we sell our shares? I suppose the only way to reduce the CGT is to drip feed them out slowly over a few FY’s?

2. So lets assume I pay cash 100% for PPOR of say 1M. I sell half the shares and use that 500k for IP’s and keep the remaining 500k in the market to collect divs etc. Wou…[Read more]

May I ask your combined household taxable income? Ballpark ?

I ask because if you were to set aside 500K to put towards a principle home, and then 500K towards INV purchases, you could break it up into 5 x 100K “chunks”. Use 5 x 100K deposits to purchase 5 x NRAS properties at @ 350- 400K each. Each 100K deposit would cover 20% deposit…[Read more]

NRAS Round 5 funding has been cancelled in the Federal Budget, but existing incentives from Round 4 remain fully funded…

Round 5 would have provided funding for 10,000 NRAS incentives, but the incentives hadn’t been awarded yet so its not like anything has been clawed back or withdrawn. They just aren’t proceeding with the last tranche.…[Read more]

NRAS is a tax incentive, not an investment property fad.  You are looking at it all wrong.  Where else can you get a 10% Tax Free Return on your investment?   I bet your negatively geared property doesn't do that for you….

Anyway, I digress…. regarding the article you have submitted to defend your position; it is literally dripping with…[Read more]

Unfortunately that's not quite correct I'm afraid.

The NRAS tax incentive does not have any connection to ordinary offsets that can be applied against your assessable taxable income. None whatsoever. . 

It is paid via two components, called a Refundable Tax Offset ( not the same as a tax offset- see below) and a Non Assessable Non Exempt Cash…[Read more]

This is always a risk with properties purchased Off The Plan, whether they are NRAS or not.  The best advice I can offer is to have your broker order an upfront valuation on an "as if completed" basis, so that you can see how the valuer would value the property today if it were available to be settled immediately.  if the valuation is on the money…[Read more]

The NRAS dwelling ID is isued to the NRAS consortium within 6 weeks of the property settling and a tenant moving in. The certificate noting the NRAS Dwelling ID should then be made available to you immediately

well, looks like that's happening. Every existing GE deal I have under 80% will be getting refinanced to the new FirstMac 3.99% product. It's a no brainer.

god of money, why are you surprised FirstMac is still alive?  Im just surprised you would ask that, unless you don't know much about Kim Cannon!   From what I understand, he employed a pretty deliberate strategy to roll up into a little ball and ride out the crisis, but remained pretty profitable throughout. He bought the HSBC book before this cr…[Read more]

wont last long…  we all know that institutional  investors/ securitisation markets wont buy lo docs, so eventually every lender has to face the reality of pulling them. It will be a 60% lo doc market by  Xmas or early 2009. PMI and Genworth will see to that… unless the deal is impeccable. But if it was im peccable I guess it would be fu…[Read more]

In an environment like this,  and with that equity at your disposal, it's pretty difficult to ignore the merits of investment property.  Consider these points;A- We have the lowest rental vacancies in just about forever… and it WILL stay this way for some time yet. (see point D below)B- This has lead to significant upward pressure on rentals a…[Read more]