Investing in NRAS

BHC has developed NRAS properties that are well located in solid growth, low vacancy locations close to employment, schools, shopping centres, hospitals and transport. To view BHC NRAS properties click here.

Possible benefits of investment in BHC NRAS properties include:

1.    Rental Yield
2.    Allowable tax deductions
3.    NRAS Tax Free incentive
4.    Capital Growth

** subject to market forces

Rental Yield: Under the NRAS scheme, an investor may expect to receive a discounted rental yield from their investment property. For example if the rental for a one bedroom unit in an inner city location is $400 per week, the discounted rent payable by the tenant will be a maximum of $320 per week (at least 20% less than market rent for the area).

Allowable Tax Deductions: As with typical investment properties, a range of expenses (eg management fees, rates, body corporate charges) and non cash amounts (eg depreciation of plant and equipment and amortisation of borrowing costs) may be permitted as allowable deductions against the income generated from the property, subject to personal circumstances.

NRAS Tax Free Incentive: In return for providing a rental property at a discounted rate a tax free incentive will be provided to the investor each year for a period of 10 years whilst their unit is part of the scheme. *** This tax free incentive ($9524 as at June 2011) is indexed to increase each year with the rental component of cpi. For example at the end of the financial year if an investor’s tax payable is $30,000, this liability is effectively reduced by the $9524 incentive amount resulting in a tax payable amount of only $20,860. 

*** Subject to compliance with the NRAS Act and NRAS Scheme

Capital Growth: As with a standard dwelling or investment property, NRAS properties may stand to gain in value in accordance with the capital growth rates of the suburb in which they are located, subject to market forces.

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

Further information on the NRAS scheme, eligibility limits and incentive amounts can be viewed at http://www.environment.gov.au/housing/nras/requirements.html#pt