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What is an NRAS Investment Property?

What is an National Rental Affordability Scheme (NRAS) investment property?

The National Rental Affordability Scheme (NRAS) is an Australian Government initiative.  It is a commitment to improve the affordability of housing for low to medium income earners. The purpose of raising the NRAS investment property scheme is to increase the supply of affordable housing for those in need. By offering an incentive to property investors, the NRAS scheme is designed to increase the number of affordable homes and reduce the cost of rent. The NRAS investment property scheme is good news for both investors as well as tenants looking for more affordable housing options.

Can I buy an investment property for NRAS?

The NRAS investment property scheme is aimed at medium to large scale investors. Rather than individual investments, the scheme provides for consortiums, trust investments and larger sized investors. So if you want to become involved as an individual, it is a good idea to find a consortium of investors.  The consortium will need to have approval to participate in the NRAS investment property scheme. But the simple message is this.  It is possible to buy an investment property under the NRAS scheme.

What is an NRAS Investment Property?

The NRAS investment property scheme aims to increase the supply of affordable housing for low to middle income earners. Eligible families are able to rent NRAS homes for around 20% less than the market rate.  So this makes housing more affordable for their circumstances.

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

07 3843 4511

What are the benefits of an NRAS Investment Property?

There are benefits for all parties in the NRAS Investment Property scheme. Firstly, property developers and investors are encouraged to provide a range of low cost housing options.  This is in return for a contribution from the Australian Government. These properties are required to be provided to NRAS compliant tenants for around 20% less than the market rental rates. Effectively, this means that affordable houses are subsidised by the Government.  In return the Government provides incentives to NRAS property investors to provide an increased supply of affordable and low cost housing. The increased supply of affordable housing is a viable means of reducing the cost of housing for some.  In particular, for those low to middle income earners who find the high cost of housing prohibitive.

What does an NRAS investment property look like?

The NRAS Scheme is not intended to become a social housing system. The design and features of NRAS investment properties are intended to be in alignment with typical housing standards. That is, the idea behind providing NRAS investment properties is that they should be indistinguishable from other homes in the neighbourhood. They should be constructed in areas with a high demand for rental properties.  Furthermore, they should be close to schools, shops, and all other convenient amenities.

NRAS investment properties must meet certain standards

Generally speaking, the NRAS scheme provides brand new, modern and comfortable homes. There is no restriction on the type of NRAS investment property.  It just needs to be in character with other surrounding homes. A typical NRAS investment property may be any range of styles.  From a studio apartment surrounded by other units. Or the property could be a modern family home on an estate surrounded by other similar homes. There is no specific criteria for the size or shape of an NRAS investment property.  However, it must comply with all local Council planning regulations and guidelines for that specific location.

What is the rental for an NRAS Investment Property?

Another requirement is that rental rate should be offered at around 20% discount from the average market rate. The average market rate should be determined by a qualified NRAS property manager, who can ensure that the property complies with the NRAS guidelines.

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

07 3843 4511

Do you need a property manager for an NRAS Investment Property?

There is no requirement for who should manage your investment property.  However, there is a qualification required to be an NRAS property manager. Position One is a property manager who is qualified as an NRAS property manager. There are requirements for compliance under the NRAS scheme.  These are things such as ensuring the accuracy of the tenants income statements, and maintaining a record of the tenancy agreements. All tenants must be screened and managed by the property manager.  The screening is to be done in accordance with the NRAS guidelines for eligibility. Otherwise, the usual property management obligations such as property maintenance, compliance with health and safety laws and ongoing tenancy apply.

What is the average lease for an NRAS investment property?

There are no special requirements in terms of the tenancy of an NRAS Investment property. The property management of NRAS properties is much the same as for normal rental properties. However, once a property has been approved for NRAS, the scheme runs on a 10 year program.

An NRAS Investment Property is an investment in the future

Here at Position One, we believe that the NRAS scheme is an ideal solution to maintaining housing affordability.  So we fully support both investors and tenants in this endeavour. We believe than an NRAS Investment Property is an investment in the future, and we aim to make viable returns for our property owners. At the same time, we aim to provide affordable housing for all.  This includes those low to middle income earners with a genuine need for affordable housing. Are you are interested in becoming involved in the NRAS investment property scheme?  If so, be sure to speak to an experienced and qualified NRAS property manager at Position One today!

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

07 3843 4511

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

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