NRAS Investment

NRAS Investment – What is it? How does it work?

Share This!

What is the National Rental Affordability Scheme and NRAS Investment?

The National Rental Affordability Scheme (NRAS) is an Australian Government initiative to promote the availability of affordable rental properties.   The scheme is commonly known as NRAS.  It is a plan to address the shortage of affordable rental properties around the country.  The NRAS is basically a plan which offers financial incentives to those who invest in rental properties that are suitable for low to medium income earners.  By offering incentives to construct more NRAS investment properties, the scheme aims to increase the overall supply of affordable housing.

Who benefits from the National Rental Affordability Scheme?

The overall benefit of the NRAS is to reduce the rental costs for low to medium income earners.  The main aim of the scheme is to increase the supply of cheaper rental housing.  Therefore, this would reduce the demand on housing.  The aim is also to reduce the cost of renting a house.  But to do this, the Australian Government has recognised that it needs to encourage investors and builders to increase supply of affordable housing.  So there are benefits for those who build or rent an NRAS Investment or rental property.  And clearly, there are benefits for those families who obtain more affordable rental housing options.

How does an NRAS investment work?

The NRAS investment scheme operates by providing an annual incentive bonus to investors who offer low cost rental housing. The rental cost should be around 20% lower than the market rate for rental properties in that area. The NRAS investment incentive is available to approved participants who are successful through application to the NRAS scheme. The NRAS Investment scheme is extremely versatile and many different types of investors are eligible to apply. For example, there are:

  • private developers,
  • medium to large size investors,
  • not for profits,
  • financial institutions,
  • and community housing schemes

who can all apply for NRAS investments.

What is the annual NRAS investment incentive?

The NRAS investment incentive is an annual amount provided by the Australian Government to the investor.  The NRAS Payment is provided to approved participants for each approved NRAS investment property.  To be an approved NRAS investment, each property must comply with the conditions of the NRAS investment scheme. The incentive comprises an Australian Government contribution per property, per year for up to 10 years.  So this certainly provides a long term proposition for NRAS investments.  The contribution is indexed annually as either a tax offset or a cash benefit for those who do not receive a tax offset.  Additionally, the local State Government may offer a contribution for eligible NRAS investments, which is at the discretion of local policy.

Who manages the NRAS investment scheme?

The Department of Social Services (DSS) is responsible for managing the NRAS investment scheme.   DSS is responsible for the ongoing management of NRAS investments, but they are not involved in the rental management side of the deal.  In terms of the day to day administration of NRAS properties, they are managed by local property managers.  Position One is proud to be associated with the NRAS Investment scheme, and have been formally qualified as property managers for NRAS investment properties.

Call Position One Property for assistance with managing your NRAS property.

07 3843 4511

Who can rent an NRAS property?

The NRAS scheme is primarily aimed at providing affordable housing for low to middle income earners.  There are income limits for eligible tenants, based on the gross income of the occupants.  But there is incentive for low income earners to increase their earning potential.  It is a condition of the NRAS investment scheme that the dwelling must be made available for eligible NRAS tenants.  The property is to be managed by the local property manager.  Here at Position One, we maintain a register of eligible tenants under the NRAS investment scheme.  In accordance with our tenancy policy, we provide the best alignment between any given property, and the prospective tenant, to make sure the we achieve a good outcome for both NRAS investor and tenant.

NRAS Investment Benefits – Can I list my property with NRAS?

The NRAS investment scheme is typically aimed at medium to larger sized investment organisations.  There is no exclusion of smaller investors or private investors, however.  Rather, it is more about the number of NRAS investment properties.  The NRAS investment scheme is aimed at larger numbers of affordable housing properties.  Individual investors can certainly be involved as members of larger investment organisations such as consortiums, property trusts or even superannuation funds.

How can I register my existing property with NRAS?

There is no provision for individual inspections and assessments of properties.  Applications are unlikely to be approved.  The scheme is aimed at approval of NRAS participants who then go out to build and construct affordable housing options.  The approval conditions include the approval and design of affordable housing in appropriate locations for those NRAS investments.

What are the characteristics of an NRAS property?

The design and appearance of NRAS investment properties are required to compare favourably with any other private market homes. Typically, the NRAS property should not be distinguishable from other surrounding homes and should be in character with the local development guidelines.

Who can be a tenancy manager of an NRAS investment?

Property managers for NRAS investments are at the discretion of the owner or investor.  Here at Positon One Property, our Brisbane Property Managers are experienced and qualified to manage NRAS properties.  The property manager for an NRAS property assesses tenant eligibility, determine market rental rates, maintenance, tenant screening, and maintain all records to satisfy NRAS Compliance.

We can look after your NRAS Property

NRAS homes come in many shapes and sizes.  They can range from small studio apartments, right through to typical sized family homes.  The criteria states that they must have the appearance of a typical property for a given location.  Furthermore, there must be a high demand for rental properties in that location.  There should be high opportunity for employment.  Good availability of schools and other services is also important.  Position One Property is qualified to manage your NRAS property on your behalf.  We can manage all aspects of the NRAS tenancy requirements.  Tenants must submit an income statement, as well as an asset test, in order to apply.  Furthermore, compliance with the NRAS terms and conditions are what we manage.

Call Position One Property for assistance with managing your NRAS property.

07 3843 4511

Don’t miss out on your NRAS investment government contribution

When Positon One Property acts as property manager for your NRAS investment rental property, you can relax.  All the conditions are met and managed under our property management.  We make sure that you remain eligible for your NRAS government contribution.  So, you never miss out on the maximum returns from your NRAS property investments.

Call Position One today to speak to one of our qualitied Property Managers.

07 3843 4511