NRAS Investment Property

What is an NRAS Investment Property?

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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