Introduction to NRAS


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Onyx presents an introduction to the National Rental Affordability Scheme. Learn about the basics of NRAS, discover how you could earn over $100,000 in tax free income and find out where you can source NRAS properties.
Onyx is an Australia-wide property investment services company, assisting investors in sourcing properties and providing property strategy, mortgage finance and conveyancing services.

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Introduction to NRAS

  1. 2. NRAS Approved Property Investment
  2. 3. Disclaimer <ul><li>The information contained in this presentation is of a general nature only and does not take into account your particular objectives, financial situation or needs. Accordingly the information should not be used, relied upon or treated as a substitute for specific financial advice. While all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Onyx nor its employees or agents shall be liable on any grounds whatsoever with respect to decisions or actions taken as a result of you acting upon such information. </li></ul>
  3. 4. NRAS Property Benefits <ul><li>Turn negative cashflow into positive </li></ul><ul><li>Earn $109,228 tax free income </li></ul><ul><li>Powerful tax and financial benefits </li></ul><ul><li>Maintain negative gearing benefits </li></ul><ul><li>Tax offsets AND Tax deductions </li></ul><ul><li>Government identified demand </li></ul>
  4. 5. Cashflow Comparison NRAS Non-NRAS Price 289,000 289,000 Stamp duty 1,670 1,670 Other 4,398 4,398 Total 295,068 295,068       Gross Rent (96% occupancy) 11,542 14,427 Interest -21,222 -21,222 Expenses -3,140 -3,140 Total -24,362 -24,362 Tax Deductions 6,022 5,113 NRAS Benefit (Net) 8,455 0 Total 14,477 5,113 Annual Cash 1,657 -4,822 Weekly Cash 32 -93
  5. 6. 100% Finance Option
  6. 7. Who pays?
  7. 8. Capital Growth
  8. 9. What is NRAS? <ul><li>National Rental Affordability Scheme </li></ul><ul><li>Up to 35,000 dwellings </li></ul><ul><li>Government is providing Incentives to: </li></ul><ul><ul><li>increase the supply of affordable rental dwellings; </li></ul></ul><ul><ul><li>reduce rental costs for low to moderate income households. </li></ul></ul><ul><li>Administered by FaHCSIA (Family and Housing Community Services and Indigenous Affairs) </li></ul>
  9. 10. Incentives to Investors <ul><li>Annual incentives for ten years </li></ul><ul><li>Current incentives are: </li></ul><ul><ul><li>A Commonwealth Government Incentive indexed for 10 years and currently at $6,855 per dwelling per year as a refundable tax offset or payment. Certificate provided in June; and </li></ul></ul><ul><ul><li>A State or Territory Government Incentive indexed for 10 years and currently at $2,285 per dwelling per year paid with October rental payment </li></ul></ul>
  10. 11. Total Tax Free Incentive <ul><li>Projected $109,228 </li></ul><ul><li>Indexed at 3.9% p.a. </li></ul><ul><li>2010 - 2019 </li></ul>
  11. 12. Incentives Indexed
  12. 13. Tax Adjusted Incentive
  13. 14. NRAS Criteria <ul><li>Rented at 20% below market rent </li></ul><ul><li>To eligible low and moderate-income households </li></ul><ul><li>New dwellings in selected postcodes </li></ul>
  14. 15. Income Levels for eligible NRAS Tenants <ul><li>Average household income is $74,000 for private rental tenants </li></ul>
  15. 16. What is Affordable Housing? <ul><li>Bridges the gap between social housing and full priced private rentals </li></ul><ul><li>Created to reduce the rent payable by eligible tenants </li></ul><ul><li>Tenants are eligible to receive affordable housing as long as they earn less than a prescribed income </li></ul><ul><li>Currently 1.5 million households are eligible to rent NRAS properties </li></ul>
  16. 17. Types of dwellings <ul><li>Must be brand new </li></ul><ul><li>Identical to other private homes in the market </li></ul><ul><li>Scattered within larger developments or estates </li></ul><ul><li>Apartments, townhouses, villas and stand alone homes </li></ul>
  17. 18. How Onyx assists you with NRAS? <ul><li>Help you select your property </li></ul><ul><li>Arrange suitable finance </li></ul><ul><li>Manage your conveyancing </li></ul>
  18. 19. NRAS Approved Properties <ul><li>Licence is granted by the Government to an Approved Participant </li></ul><ul><li>Approved Participant sources suitable properties for each licence </li></ul><ul><li>10 years commences from tenant occupation </li></ul>
  19. 20. NRAS Approved Participant <ul><li>Find you an eligible tenant </li></ul><ul><li>Handle compliance requirements </li></ul><ul><li>Property management services </li></ul><ul><li>NRAS Management Fee </li></ul>
  20. 21. How do you buy your property? <ul><li>Select and reserve property at: </li></ul><ul><li>Pay refundable $1,000 holding deposit </li></ul><ul><li>Receive your Contract of Sale </li></ul><ul><li>Apply for finance </li></ul><ul><li>Receive introductory pack from Approved Participant </li></ul><ul><li>Settlement is arranged </li></ul>
  21. 22. Arranging a Tenant <ul><li>Approved Participant responsible for locating an NRAS eligible tenant </li></ul><ul><li>Tenancy Agreement directly between you and tenant </li></ul><ul><li>On-going management of the property and NRAS compliance will be provided by Approved Participant </li></ul>
  22. 23. Who is Onyx? <ul><li>Established in 2002 </li></ul><ul><li>Highly regarded with property investors </li></ul><ul><li>Provides strategic finance advice </li></ul><ul><li>Arranges finance for a wide variety of property investor needs </li></ul><ul><li>Manages property investment projects delivering great value </li></ul><ul><li>Provides conveyancing, general legal advice (eg wills, powers of attorney), and business legal advice. </li></ul>
  23. 24. How do I view NRAS Properties? <ul><li> </li></ul>How do I contact Onyx? Phone: 1300 1400 15 Email: [email_address] Web: