Thursday, March 22, 2012

NRAS Housing: An Effective Income Tax Benefit for Australian Property Investment Buyers

BERLIN, GERMANY - MAY 19:  Model Nadja Auerman...Image by Getty Images via @daylifeNRAS Housing: An Effective Income Tax Benefit to Australian Investors
NRAS Housing, known as National Rental Affordability Scheme, is one of the best ways for property investors to get started buying Australian investment properties.
It is also one of the best ways an experienced real estate investor can grow their portfolio because of the extra $90,000 provided by the Government over the first 10 years of ownership.
The sole objective is to create extensive investment opportunities in the Australian market. Many large-scale investors seek to register under this scheme to derive the benefit of high returns on their direct property investment. The rationale behind NRAS scheme is to:
1. offer tax-free incentive per dwelling to investors who build
2. rent out approved dwellings at a rate that is less than 20 percent of the prevailing market rate for the benefit of poor and moderate income holders.
Through this scheme the Australian government seeks to reduce the tenancy crisis. This scheme is supported by the Queensland government and seeks to increase the supply of affordable rental dwellings in Australia by 50000 by the year 2014. They have already allocated 15000 at the time of writing this article and they expect to have filled the allocation by the end of 2014. In other words, don't hang around and wait forever because you will miss the boat...
This is a fantastic option for all potential investors. Why?
This is the only government property incentive that you get back as tax credits in cash.
Investors reap some amazing benefits through this NRAS housing schemes:
1. positive cash flows,
2. enhanced rental yields,
3. minimum $9140 tax free incentive every year for every property invested in and more than $90000 of tax free incentives over 10 years.
You can enjoy high rentals and attracts tenants locally and internationally due to such reduced rental rates.
However there are certain strict stipulations and guidelines to be eligible to invest in NRAS dwellings. The Australian Government has released a list of locations of properties that are eligible under this scheme. To avail the benefits of this scheme you have to follow the rules and regulations and invest in the region, state that is approved as per the list. NRAS proves to be a commercial and profitable investment for participants of this scheme.
The main distinguishing feature of NRAS housing dwellings and other conventional residential property investments is that NRAS incentive provides better cash return to investors even though the investor is receiving rent at 80% of rental market value.
NRAS encourages only large-scale investors to avail such incentive and hence small-scale individual investors are not eligible for this scheme. For those private and individual property investors who want to take advantage of this NRAS scheme by investing in just one or two properties, we can arrange and facilitate the application process as we involve in large-scale investments.
Our team of professional property investors understands how you can access this scheme and get the most value from it to build your portfolio successfully.
Looking for someone that can provide investment quality service? End of your quest, visit us at for more details.
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