Can anyone give me the pros and cons about investing in NRAS properties in terms of positive cash flow.
Have a look at posts by euro73. I remember he covered quite a lot of info on NRAS last year.
itsandrew
Go as far as you can see and you will see further.
Hey, agree with itsandrew… Have a look at posts by euro73 plus do a search on google of nras and the official website. I am looking at this for our second IP and from all the research I have done I can come up 3 things to keep in mind.
First location and price is very important.. Make sure that you look at the investment not as a nras with the government benefits each year but as normal investment. If you wouldn’t normally buy there and the price is not right then I would stay away. In saying that there is not much options with locations and nras but there is still choice. Secondly ensure that you get all your finances in order and you buy from a reputable nras agent. Thirdly I would probably buy an nras property that is stand alone and not in a group of houses in a low socia economic suburb.. Could attract the wrong type of people. In saying that all that I think that nras could be worthwhile if you do your research and i can provide more info should i proceed in the next few months.
Neutral or positive cash flow is a positive and I think worthwhile to have one in your investment portfolio. Wouldn’t have all my IPs as nras thou. Different type of investments in different locations I think is important to protect yourself.
Anyone have a nras that can comment? Any regrets or comments that you can make. Would love to hear from you all.
Sam.Hi all,
We are in our first full year of nras and only just getting tenants next week…….. been easy so far but right now it is hard…….meeting repayments when no rental income at all. Also, does anyone know where how I get the nras certificate so I can get some payg relief?
RoseRose, you mentioned in your post you are in your full year of your NRAS property but you are just getting tenants next week – why the delay ???? was there no demand for NRAS ??
I thought there was demand for these type of properties and they are lining up to get in ?? Well that is the spiele I am getting from those trying to sell them off as such.
Sam.
Have had my NRAS unit in Newstead since last December. It came already tenanted so this hasn’t been an issue for me. Looks like it will be positive geared once the NRAS payment comes through once I’ve put in my tax return. For me this has been the key issue – basically the NRAS payment is payed in arrears. If you can cope with the shortfall until this comes in then no problem. One other issue which should be noted was the limited number of banks willing to finance. I went with RESIMAC their rates were better than my PPOR so was pretty happy with that. All in all I’m happy.
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
I hate NRAs and hope they abolish it.
They have just flooded the inner city market in Kingaroy (ha ha ) with decent joints at decent rents, this must stop. I have a dumpy joint that was up for re letting and I had to drop the rent because of this NRAs scheme preponderance of options. Lets hope Campbell Newman in the spirit of Joh Bejalke revokes it.
Hi SamAus74
It took 11 months from signing up(April 2011) to the house being built and handed over to us (march 2012) for tennenting – tennents were in within a week of us getting it handed over. There were delays with Westpac loans – couldnt get it right, then council approval (needed easment for closness of house to boundary) then building not start till end August (which meant the build went over christmas – another 4 week delay with closure of builders over christmas) then once practical completion done ( feb 2012) it took another month for the cert 16? or something to come from council!!!! so no tennent till march 11 2012 – so 11 months!!!!! The tennent was waiting to move in!!!! for a month prior!!!
The speil they gave us was sign in April 2011 and built and tennented by Sept 2011!!!! nothing like it and the cost of the nras home loans nearly killed me with also having a normal home loan as well!!! Accountant got Tax variations in and ATO questioned the high costs we were claiming against really low rent!!!!!
Let me tell you $255 per week for a 4 bed 2 bath 22 loungeroom in Brassell – bloody rediculous rent – and!!!! they charge management fees on the full rent (should be $340 before nras 25% discount) so only get $820 per month for a mortgage of $2300 per month!!!!so we having to find $1480 + insurance +rates +water access and what ever else comes along!!!!
I am questioning the value!!!!!! and I cant even refinance as the property is valued at $30k under the mortgage we have on it!!!!! so my house is being part held for security – there goes the equity in my place for many years to come – very hard slog !!!!!
The speil they gave us was – overall in the first year it should only cost you $9 per week – my tax variation now has me paying no tax and has halved my salary – but all that money is going back into the nras property – not $9 per week!!!!
Sorry for the whing but really frustrated here and no where I can go to get any relief at this point!!!!!
So have to get tax done really quickly so I can make sure the tax variation is in place so I can continue to live and pay my current mortgage!!!!!
RoseRose hate to say the reason why the property was valued $30k less than the purchse price was because someone earned a nice fat commission off the sale to you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
NRAS has some good features, but there are also pitfulls to it too, including:
1. Lump-sum payment
2. Retal amounts different to expectations
3. Focus on cashflow and not capital growth
4. Not doing proper DD
5. Fiancing problemsMore details here:
http://achievepropertysuccess.com/fivemajor-traps-to-avoid-with-nras-investment-property/Hi guys,
Could someone please elaborate on the Financing issues. Wouldn’t it just be a regular IP loan?
Also, does anyone know where I can get a full list of the consortium’s that sell NRAS properties. I’ve seen a few from doing Google searches but I want to be sure I am aware of all deals available.
And a tax question; if the main part of the NRAS payment is a Tax Offset, in the case the property is purchased in joint names, would that mean 50% of the offset each?
Cheers
Simon
Simon Plummer | SP
https://www.sp.com.au
Email Me | Phone MeSP
Hi there, I'm just about to purchase an NRAS IP with my partner. It all seems pretty straight forward to me and the place is already tenanted and priced pretty fairly.
Any advice or tips on getting the seller to lower price would be good?
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