Advice Warning This presentation is intended to provide general informationonly and has been prepared by Fidelis Financial...
Your Finance Adviser Credit Representative of Australian Credit Licence Number 389328
Affordability Scheme
Why property? Provides ...
NRAS
NRAS
NRAS NRAS is expected to deliver Affordable Rental Homes 50,000 ...
NRAS But itsparticipantswill continue to 10 Year enjoy the Per...
can participate in this scheme?
Approximately 1.5 million Australiabe: Are eligible to nsNRASTenant
Potential participants in NRAS include: Financial instit...
Are there any
Area RestrictionsMust be brand newDwelling must be rentedMust be self contained
Area RestrictionsFacilities
Tenant
Income Requirements Tenant Entry...
Incentives?
Incentive The Tax Free Incentive currently(annual increase according toCPI) is of: $9,781
and comprises of: Tax Free Incentive 10000 $2295 5000 ...
Advantages of NRAS
AdvantagesTax free incentive 1Negative Gearing Benefit 2Incentive used to repay the mortgage quicker 3
AdvantagesReduced Vacancy Rates 4Flexible Scheme 5Property Sold and Transfer Benefits 6
Disadvantages of NRAS
DisadvantagesUnwilling Some banks are unwilling to lend against NRAS properties. The 1 ones that do, have restrict...
DisadvantagesHigher Mortgage Repayment Payment has to be settled fully before construction begins. This 4 means that...
Fidelis App Download Today All of the property tools and resources at your fingertips. Get loan pre- ...
Earn $200for every new home loan client you refer to us!
Make your FREE appointment today Credit Representative of Australian Credit Licence Number...
1300 764 247finance@fidelisfinancial.com.auwww.fidelisfinancial.com.au
NRAS
National rental affordability scheme (NRAS)
National rental affordability scheme (NRAS)
National rental affordability scheme (NRAS)
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National rental affordability scheme (NRAS)

NRAS
Published on: Mar 3, 2016
Published in: Economy & Finance      
Source: www.slideshare.net


Transcripts - National rental affordability scheme (NRAS)

  • 1. Advice Warning This presentation is intended to provide general informationonly and has been prepared by Fidelis Financial Solutions ABN 22 154 372 979 without taking into account any particular persons objectives, financial situation or needs. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain financial advice specific to theirsituation before making any financial investment or insurance decision.Please note all case studies on this site are for illustration only.
  • 2. Your Finance Adviser Credit Representative of Australian Credit Licence Number 389328
  • 3. Affordability Scheme
  • 4. Why property? Provides Diversification to Potential of your Portfolio Strong Capital as property is As a result, it It tends to provide unrelated to other provides the ability growth strong but investment classes to Stable Returns you might have Smooth out the across all Volatility & Returns economic cycles of your wider portfolio It is a Current historicallyDefensive Growth Low Vacancy Rates asset Australia wide
  • 5. NRAS
  • 6. NRAS
  • 7. NRAS NRAS is expected to deliver Affordable Rental Homes 50,000 up to by 2014 until 2016The scheme will only be available
  • 8. NRAS But itsparticipantswill continue to 10 Year enjoy the Period Tax-Free Incentive
  • 9. can participate in this scheme?
  • 10. Approximately 1.5 million Australiabe: Are eligible to nsNRASTenant
  • 11. Potential participants in NRAS include: Financial institutions PotentialParticipants Private developers Not-for-profit Community organisations housing providers
  • 12. Are there any
  • 13. Area RestrictionsMust be brand newDwelling must be rentedMust be self contained
  • 14. Area RestrictionsFacilities
  • 15. Tenant
  • 16. Income Requirements Tenant Entry Income Upper income level Household Type level ($) to maintain eligibility ($) Single person 45,496 56,870 Sole parent with 1 child 62,943 78,679 Sole parent with 2 78,033 97,542 children Couple with 1 child 77,989 97,487 Couple with 2 children 93,079 116,349 Couple with 3 children 108,169 135,212The income limits are:• the scheme allows for a 2 years of income rise up to 25% p.a. before becoming ineligible
  • 17. Incentives?
  • 18. Incentive The Tax Free Incentive currently(annual increase according toCPI) is of: $9,781
  • 19. and comprises of: Tax Free Incentive 10000 $2295 5000 $7486 0 State or Territory Government An Australian Government contribution contribution of $2,295 per dwelling per of $7,486 per dwelling per year paid into a year as a cash payment in September. trust account in July.
  • 20. Advantages of NRAS
  • 21. AdvantagesTax free incentive 1Negative Gearing Benefit 2Incentive used to repay the mortgage quicker 3
  • 22. AdvantagesReduced Vacancy Rates 4Flexible Scheme 5Property Sold and Transfer Benefits 6
  • 23. Disadvantages of NRAS
  • 24. DisadvantagesUnwilling Some banks are unwilling to lend against NRAS properties. The 1 ones that do, have restrictions on the percentages they will lend.Increase risks Tenants being from a lower income social demographic group can 2 increase risks associated with the treatment of your property, wear and tear, payment of rent, etc.High Demand and Low Supply Area limitations to high demand and low supply, rural and areas 3 under development. This may impact the potential capital gains compared with other locations.
  • 25. DisadvantagesHigher Mortgage Repayment Payment has to be settled fully before construction begins. This 4 means that there will be higher mortgage repayments during construction.Annual Fees Consortiums charge an annual fixed fee of 7.5% of the total 5 incentive decreasing the total incentive.
  • 26. Fidelis App Download Today All of the property tools and resources at your fingertips. Get loan pre- approval, ask for property valuations, access our professional network and much more!Available from Google Play and Apple Store
  • 27. Earn $200for every new home loan client you refer to us!
  • 28. Make your FREE appointment today Credit Representative of Australian Credit Licence Number 389328
  • 29. 1300 764 247finance@fidelisfinancial.com.auwww.fidelisfinancial.com.au
  • 30. NRAS

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