Here is a way you can create a better retirement for yourself and live comfortably, it’s called NRAS
Every month when my employer pays me, the Australian Government deposits $831.75 into my bank account, tax free – and I’m not talking about Centrelink payments (I’m employed full-time and have no Government assistance).
I’m talking about a little known thing called the ‘National Rental Affordability Scheme’ (NRAS).
NRAS is not a social housing program. The NRAS property program (National Rental Affordability Scheme) is a Government initiative is designed to stimulate the building of rental homes in growth areas to satisfy a high demand for reasonably priced rental property. The types of people who are eligible for this rent assistance are households who earn between $45,496 and $108,169 per year.
The Federal Government NRAS program is also designed to provide a method and a potent incentive for Australian property investors to build their wealth and tangible assets with a social impact investment strategy. The NRAS real estate program stimulates the economy and building industry, nationally.
Here’s a real life example of how it can help:
A client of ours, Trudy recently bought an ‘NRAS’ Approved House for $350,000. (She used her home equity as a deposit, so she didn’t need to use any of her own cash.)
It’s a brand new townhouse, with 3 bedrooms, 2 bathrooms and in a decent suburb, 14km from the city, with all the normal kinds of properties – in fact her neighbours are paying rent in full without assistance). It is now being rented by a couple with 2 small children who are paying $272 per week. With the weekly rent, and the Government also paying her $831.75 every month, Trudy receives $24,125 income per year from the property. Trudy’s investment loan costs just $20,570 per year, so the property is netting her over $4,000. The property hasn’t cost her a cent since she bought it – it is putting money back in her pocket. Trudy’s gross income increased by 37% by investing in property.
This sounds too good to be true, so there must be a catch, right? Well, for once there is no catch. You see, the Government guarantees to pay you $9,981 every year for 10 years – and by that time the property will be worth a lot more, you can easily sell it, and it has never cost you a cent to own!
What if the tenant trashes the property or doesn’t pay rent? Well, remember the property is being rented by hard-working people earning between $45,000 and $108,000, and between the diligent Property Manager and Insurance you are fully covered by what might go wrong.
Perhaps some of the benefits need to be outlined.
1. NRAS property returns typically greater than 7% gross rather than conventional residential investment property 5% returns
2. NRAS property provides security of income stream for 10 years
3. NRAS properties can generate POSITIVE CASHFLOW, so there is no weekly cost to your pocket
4. All the NRAS properties are located in high growth areas, with proximity close to schools transport and services, all the things you want for a great investment property
You would be surprised more people don’t know about this little known investors secret.
Check out our website page on NRAS to find out more or call us about this fantastic program.