NRAS No more new approvals

rmamila on 08/07/2014 - 15:19

Hi Guys,
I've been looking to buy NRAS for few years now and couldn't find one which would fit into things I was concerned about. Finally I found one which would fit into my criteria. Price was not inflated much. It's a good quality construction. Modern looking 2B/2B/1P apartment in a big apartment building with similar quality ones. This is in SE Melbourne and the construction is finishing end of this year. I see there are other apartments with similar spec being advertised for the same price to sell off the plan.

Even though we had this topic discussed in this forum before I didn't see any comments from some one who already has a NRAS property. Do any of you guys in this forum have NRAS at the moment ?

I went through the government web site with URL below.
http://www.dss.gov.au/our-responsibilities/housing-support/p…

The new Government has stopped funding for this scheme from last budget. Different documents and pages in the Gov web site provide some contradictory information. One place it says the funding finishes by 30 June 2018. However in some places it says that you get the grant for next 10 years if the property has already been tenanted. Another place it says if the builder does not finish the property in time they might loose the NRAS status. (at the end the buyer will loose it builder has already sold them off the plan) It even suggest the buyers to discuss with the builder on the finishing times. There is no way buyers to control the builder or speed up the construction.

Does this mean if the construction finish by some unknown time line would the tax rebate be granted and continue for next 10 years or does it still finish in June 2018.

With this contradictory and vague information in the web site how can some one guarantee if they get the tax offset or not.

(One document in this web site indicate that in Victoria average annual house hold income of NRAS tenants is $24000 which is more than double in other estates like QLD , NT, etc)

As the regulation gives quiet reasonable annual income limit for eligible tenants can we still choose whom to rent it for as long as they satisfy the criteria Or is it the NRAS management company who choose the tenants?

If any of you know the answers for this puzzle can you please comment in this thread?

If any of you have NRAS already please share your experience. Would it be easy to find reliable tenants?

Financial

Comments

  • CyberMurning on 08/07/2014 - 15:49
    +1

    maybe you get more answer/reply here: http://somersoft.com/forums/index.php

    • rmamila on 11/07/2014 - 16:52

      Thank you for the link.

  • CyberMurning on 08/07/2014 - 15:50

    As the regulation gives quiet reasonable annual income limit for eligible tenants can we still choose whom to rent it for as long as they satisfy the criteria Or is it the NRAS management company who choose the tenants?

    as far as i know NRAS mgt company find the prospective tenants, owner choose/decide who get it.

  • mskeggs on 08/07/2014 - 17:54

    Sovereign risk. You take the risk the gov will change the rules on you.
    In my experience, the gov is likely to grandfather existing participants of programs and stop new participants, but obviously, who knows.
    It may well be that there is lack of clarity because it is a bargaining chip in getting things passed in the new senate.
    Too risky for me, but if you feel the property stacks up as a straight investment with no NRAS, it might well be worth it to you.

    • rmamila on 08/07/2014 - 22:22

      In my situation it can only stack up as an investment only if it has NRAS, otherwise it's not worth the hassle of having a property which would not appreciate much in future. I wonder why government does not clarify their stand for buyers.
      How can we find what is the deadline that Government has given for the builder to finish construction?
      Yesterday I sent an email to the email address provided in the Government web site. Still no reply. Called the 1800 number few times around 2.45 p.m. today. It always goes to a recording which says they are open from 9 - 4 on week days and it gives option to record a message and informs to send an email. I did send the email, left a message and gave the calls during the open hours. It seems they have even abandoned the phone and the office.

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