NRAS is an integral part of the Federal Government’s solution to Australia’s affordable housing crisis. But how does it work? Why is it good for investors?
NRAS is aimed at increasing the supply of new and affordable rental housing through the construction of around 38,000 high quality homes and apartments across Australia by 2016. The project reduces the rental costs for low-moderate income households by providing rental properties at 20+ percent below the market value rate.
What does this mean for investors?
The NRAS scheme offers financial incentives for investors who build and rent dwellings for low and moderate income households at 20 percent (or more) below market rental rate. The incentives are made available for 10 years per dwelling.
The two key factors of the incentives are; a $6,000 refundable tax offset or payment, per year, per dwelling from the Commonwealth Government, and a $2,000 payment from the State or Territory Government per year.
Both incentives are indexed annually on 1 May to CPI (average for eight capital cities). The combined incentive payment is currently $10,661 (NRAS 2014/15).*
To find out more about how the NRAS scheme could benefit you,
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*sourced from http://www.quantumhousing.com.au/