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NRAS Properties For Sale

About National Rental Affordability Scheme Properties

Residential property has proved to be a profitable investment with returns on residential property showing higher returns than commercial property investments over the last 10 years.

The majority of investors and property developers identify the opportunity for solid returns on a low-risk investment and are eager to invest in the NRAS (National Rental Affordability Scheme) properties applying the most suitable structure (this includes debt).

The Government supports mixed NRAS developments owned by different investors. A debt portfolio of NRAS properties is far less risky than an average loan for a commercial property developer or an investor. The reason for this is properties are generally spread across different developments and have a continued strong rental demand.

NRAS Properties must:

  • be rented at a rate that is at least 20% below the market rent
  • be rented to “eligible tenants”
  • not have been lived in as a residence
  • comply with Local, Territory and State government building and planning codes and requirements.

The Federal Government does not manage waiting lists for properties supported by NRAS or select tenants. Instead, this is conducted by the tenancy manager of the particular development or by the Territory and state housing departments. To apply, tenants need to directly register their interest with the tenancy manager.

The distribution of NRAS dwellings or properties to tenants is at the discretion of, and assessed by the tenancy manager. Decisions are made in line with standard application processes and policies and all NRAS eligibility requirements are met.

An independent written valuation of the market rent is needed for each property when it initially becomes available for rent under NRAS. This is repeated at the end of the 4th and 7th years of the property’s 10 year involvement in the scheme. Rental rates for NRAS properties MUST NOT exceed rates of 80% of the valued market rent.

There are various options for tenants, should the investor choose to sell their NRAS property. The majority of tenants who have lived in an NRAS dwelling for some years will not need to seek support from the NRAS program and have different circumstances to rent on the open market or may buy their own property.

After the expiry date of 10 year NRAS period, some associations may want to keep their NRAS property portfolio and retain existing tenants without the requirement to offer discounted rent.  In other cases some tenants will be living in not-for-profit housing providers. These providers may want to assist tenants in the transitioning phase or to buy the property.

Search through our remaining listings of NRAS properties for sale. We can also help you with legal, finance, conveyancing, and property investment advice.

NRAS PROPERTY MANAGEMENT

NRAS investors must appoint a property or tenancy manager. There are a range of services that need to be completed by the property or tenancy manager including tenant selection and periodic assessments of ongoing eligibility to rent an NRAS property, as well as managing the upkeep of the property.

A property manager is often part of an association which uses NRAS incentives. All NRAS properties must abide by the same standard Territory and State residential tenancy laws as would any other private residential investment. This also includes laws applying licensing and legislation requirements for tenant managers.

Under each State and Territory tenancy laws, NRAS tenants will have normal leases.  The same rules apply regarding the obligations of the tenant including maintenance responsibilities, rules surrounding evictions and other rules that apply to tenants renting in the private market.

The only prerequisite enforced by the Government in relation to NRAS tenant selection is that they pass a household income test.

Tenants who are eligible must have their gross income equal to or less than the initial income limit when they become a tenant of an NRAS dwelling.  Income might increase up to 25% (the upper income threshold) before their eligibility is affected.

For instance, a couple with 3 children, earning a gross income of $112,433 per year  is entitled to live in an NRAS home. With the income increase allowance of 25%, this family could earn up for $140,541 for 2 years before they become unqualified to stay in an NRAS dwelling. Tenant managers are expected to maintain adequate income records to ensure compliance.

Household type Initial income limit $ Upper income limit $
One adult 47,289 59,111
2 adults 65,378 81,722
Sole parent with 1 child 65,423 81,779
Sole parent with 2 children 81,108 101,385
Couple with 1 child 81,063 101,329
Couple with 2 children 96,748 120,934
Couple with 3 children 112,433 140,541

 

Household income limits are indexed annually on 1 May in accordance with the NRAS tenant income index.

NRAS properties for sale

Looking for an NRAS property for sale? When you are ready to invest in an NRAS property have a browse through our NRAS properties for sale listings.

Tandem 54 offers a great range of real estate with limited number of the remaining NRAS properties for sale.

I’m looking for an NRAS property for sale – How do I buy one?

The first step in buying an NRAS property is to speak with one of our property consultants who can refer you to a financial broker to review your financial situation and assess the type of property you are looking to buy.

Once you have a property that matches your needs, we will guide you through the process of finalising your property. Depending upon availability, there is also the option to buy additional NRAS properties, each of which will attract additional tax free incentives.

Further information

About the national rental scheme properties requirements

About the Scheme – Information for tenants

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