FAQs - NRAS

For more information click here here to download the 'Introducing NRAS Brochure'.

What’s in it for me?
Tax free incentives for 10 years from the Commonwealth and State Governments totaling $9981 (as at April 2012) per annum. These incentives are indexed to increase each year in line with the rental component of CPI.

Why buy NRAS instead of a traditional investment
A)  $9981 tax-free incentive per annum. B) Projected higher net returns resulting in lower costs to investors.

How will I receive the tax-free incentive?
The full $9981 is payable regardless of annual earnings each year, for the number of years of investment is in the NRAS scheme for up to 10 years.

The incentive is paid at end of each tax year in two parts
•    75% (currently $7486) as a Refundable Tax Offset Certificate from the Commonwealth Government
•    25% (currently $2495) in cash from the State Government
•    These payments are usually made in or around June/July each year

How many NRAS dwellings are palnned for?
There are 50,000 allocations planned throughout Australia.

Why buy from BHC?
BHC is ‘the one stop shop’ they:
•    Develop the mixed tenure product in growth areas around Brisbane
•    Sell the dwelling to the investor
•    Tenant the dwelling
•    Report for the investor in order to ensure they receive their Government incentives each year
•    Have a rental roll in excess of $9.5 million
•    Offer investors a variety of dwellings and pricing solutions based on location, composition and built
      product
•    Offer fees that are all inclusive and very competitive

What is the NRAS agreement?
BHC manages the property and  uses the NRAS Agreement to streamline the process for the investor.

What is the fee for this management service?
It is 14% (plus GST) of the actual rent received. There are no additional letting or reporting fees.

What is market rent vs NRAS rent?
An NRAS dwelling will be placed into the letting pool whereby the tenant will pay at least 20% less than the market rent. E.g. Market rent is $400, NRAS rent will be a maximum of $320.

Why at least 20% less than market rent?
This is a requirement of the NRAS scheme. New dwellings are required to be rented at a minimum discount of 20% to market rent to eligible households as based on the Eligibility Thresholds.

What lenders can I use?
NRAS investments are gaining a better understanding by a variety of lenders across the nation and more and more are coming on board with the product. Please speak to your lending professional for more information specific to your circumstances.

Can I buy more than one?
Yes. You will receive the same incentives per investment property.

Can I sell this NRAS property at any time?
Yes you can, where properties change ownership mid year the NRAS benefit is pro rated to the ownership period of each owner. Reasonable notification periods apply.

Can I remove my property from the NRAS at any time?
Yes you can, investors who wish to exit the scheme can do so by giving six months notice to BHC who will make arrangements to relocate their tenants.

For further information on BHC and investing in an NRAS property with BHC click here.

For more information on the scheme please visit:
http://www.environment.gov.au/housing/nras/requirements.html#pt

* Subject to the provisions of the NRAS Act and NRAS Scheme