Accelerate your wealth with more than one income from one property
NRAS Incentives (over 10 years) & DUAL DWELLINGS (indefinite)
The National Rental Affordability Scheme (NRAS)
What is the NRAS?
The National Rental Affordability Scheme (NRAS) was launched by the Australian Government in 2008 for the purpose of increasing the supply of affordable rental dwellings due to the shortage of affordable properties in key areas.
Under NRAS, the Australian Federal & State Government is providing Incentives to:
• increase the supply of affordable rental dwellings
• reduce rental costs for low to moderate income households
• encourage large scale investment and innovative delivery of affordable housing
How does it work?
The Investor (landlord) receives an annual tax incentive over 10 years. This will increase each year with the rent component of the CPI.
The 2013/2014 payment is made up of:
• an Australian Government contribution of $7,763 per dwelling per year (as a refundable tax offset or payment
• a State or Territory Government contribution of $2,496 per dwelling per year (in direct or in-kind financial support)
Total: $10,350 per annum (this has increased from $8000 in 2008 to $10,350 in 2013)
In return for this payment, the Investor will reduce the rental to tenants by 20% annually over the 10 year scheme.
NOTE: The NRAS is not a public housing program; it is a tax incentive to induce more private investment into the lower price range of the residential construction market. It is a tax incentive, not a tax deduction, however the same tax deductions as per normal residential property will apply.
Contact Us to find out more about NRAS incentives
Dual Dwellings is another innovative method occurring more and more in the past few years, which has come about due to the need to find more affordable properties for people looking to rent.
Dual Dwellings offer cash flow positive every year, and not just for 10 years but year in and year out.
While there are 50,000 NRAS properties to be built, Dual Dwellings are more difficult to find and, being located in high demand areas with limited supply, should therefore assure excellent capital gain as well as increasing rental yields.
These types of properties need to be approved by the local council and then the land development group with stringent building conditions, and are more often located in owner occupier estates and locations.
How does it work?
1 TITLE, 1 LOT RATE, 2 RENTS
• Positive cash flow
• Returns of approx. 6.9%
• Two lots of tax deprecations to claim instead of only one
• Capital growth potential
• Minimal outgoings
• 3 beds, 2 bathrooms, single garage PLUS 2 beds, 2 bathrooms, single garage OR 2 beds, 2 bathrooms, single garage PLUS 1 bed, 2 bathrooms, single garage
• No Body Corporate fees
• Separate water and power – tenants are charged separately
• High demand
• Looks like a standard home from the street
• Risk minimisation
Click here to watch an informative video on Dual Dwelling Investment Property