How does NRAS shape up ? Is this another government scheme that benefits the landlord investor more than the tenant ? Let's have a look.
- House price $360k
- Rent 5% $18kpa
- NRAS savings for tenant $3.6kpa
- NRAS benefits for landlord $9.1 kpa - $3.6kpa - $0.5kpa = $5kpa
Who is the biggest winner ?
You guessed right, its once again the property owner.
There are however some downsides for the investor. Government schemes always add complexity to a project and they curtail the freedom of ownership to a degree. This results in some restrictions due to compliance requirements and consequently attracts additional costs for the builder and the buyer. Plus I have a suspicion that the builder and marketing agent may also dip in a little and hike the price. Add higher fees for rental managers , auditors and tax accountants to the cost of ownership and the picture should be complete . Overall NRAS properties in most instances appear to be a good proposition. But you should always do your owns sums and then run them by your financial adviser. Don't rely on advertized figures alone, they are groomed to maximize sales.
Another alternative is the defense ministry housing scheme. I believe NRAS pays better and is saver. What if the armed forces close a base. I would not want to run such a risk.
So, how much does an NRAS property return ? Have a look at the attached email and then do your own homework. Check out what none NRAS properties sell for in your target market and make sure you understand all purchasing and holding costs.
The table below was emailed to me by Graham Shiels in February 2011. Here are his details:
Property Queensland Pty Ltd &
NRAS Queensland Pty Ltd
68 Carlock Promenade
Karalee QLD 4306
Phone: 0417 725 168
Fax: 07 3294 8636