Some of the faithful followers of our forum will know that I attend all property related seminars in Sydney as a way of doing my homework before I go out there and buy an investment property.
While I’m not yet on my property journey, I’m spending a fair amount of time examining others paths and charting out any trouble spots.
One of the investment paths that I’d heard about but seemed a bit of taboo in the property investment circles is NRAS property.
If you asked me if I thought National Rental Affordability Scheme (NRAS) property was a good idea for building wealth just a day ago, I would have said ‘no’.
The reason is simple. The concept of http://nrasmortgage.com.au/benefits-of-nras/NRAS property[/url] has stigma attached to it. NRAS is almost like a dirty four-letter word to those looking to accumulate wealth in property.
The common misconception is that NRAS is social housing for people on government benefits. The stereotype of NRAS property is something that’s in a slum neighbourhood or way out in the suburbs where there’s cheap land and not much more. It’s no surprise that property investors can’t imagine such property to have much capital growth potential.
So what changed my view of NRAS?
I attended a seminar yesterday entitled ’11 Mistakes Not to Make with NRAS Property’. The biggest common mistake is that NRAS is housing for people on government benefits. This couldn’t be further from the truth! NRAS is for people who work!
So who would fit the bill for a common NRAS tenant? It could be young professionals in their first year on their job, admin staff, nurses, tradies and a variety of other working class people earning under a specified amount. To give you an example, the single NRAS recipient must earn a minimum of $44K up to a $55K. Now this catches out university students and school leavers on their first day at work!
There is NRAS allocated property in legitimate developments that have a mainstream market. Developers like Metro group have built luxury apartments in an area like Byron Hills in Queensland and allocated some units for NRAS upon being approached by NRAS operators who offered to buy in bulk.
Now, this is A grade property in an A grade location that just happens to be NRAS. With full financing and the roughly $9K tax benefits p.a. you can have a cashflow positive property from day one that’s going to have capital growth!
So I encourage everyone out there who know of such opportunities to please not just pass up on them because of misconceptions surrounding how NRAS works.
Incidentally, was anyone else in the same seminar? What were your thoughts? Please share them on our forum.