What investors need to know!

Before investing in a property under the NRAS scheme it is important to be well-informed and gain access to sound financial advice.

As with any investment, you should consider your financial position to ensure that you do not encounter any difficulty repaying your mortgage.

Investing in an NRAS property has both advantages and disadvantages. Both should be taken into account when deciding whether this investment option suits you.

Advantages of NRAS

There are many benefits of investing in an NRAS property. The financial incentives offered by the government are advantageous. By taking part in this scheme you will also be contributing to the creation of affordable housing for those that need it most.

In return, you receive either a grant or great tax cuts. The term of the lease is fixed for 10 years making this a secure option.

Interested in buying a property under NRAS? Speak to our mortgage brokers and they can help you obtain finance to fund the purchase.

Contact us on 1300 885 102 or enquire online and our specialist brokers will call you to discuss your situation.

Disadvantages of NRAS

Despite the attractive tax exemptions and allowances that the scheme offers, there are also downfalls. As part of the agreement, you must rent the property out from between 20-25% below current market value.

Further, some consortiums charge a premium when you buy a property from them, making the transaction more expensive.

The terms of the agreement are also fixed for 10 years. This means that if you wish to sell, you must find an investor who will take on the lease. Accordingly, there is little flexibility when managing a property under NRAS.

It can also be exceedingly hard to obtain finance as lending policy is very strict.

This is because of the nature of this property type and the limitations associated with re-sale, as well as the reduced market rent. Overall, the banks consider this property type to be a higher risk.

Talk to us and make your decision easier!

Still not sure? Our expert team has in-depth knowledge of NRAS and knows which banks will allow you to borrow up to 90% LVR.

To discuss your situation, call us on 1300 885 102 or enquire online and we can help you get approval for an NRAS mortgage.