Author: Patrick Roesch

Benefits of Buying an Existing NRAS Property.

Patrick Roesch Investment Opportunities , ,

Benefits of buying an existing NRAS Property.

 

What is the National Rental Affordability Scheme?

 

NRAS is a long-term commitment and initiative by the Federal and State Governments to address the shortage of affordable rental housing by offering financial incentives to build and rent dwellings to low- and moderate-income households at least 20% below market rates.

Housing Block

 

The Government Incentives are tax free incentives, available each year for 10 years to owners of NRAS Approved Properties.

 

The current NRAS year incentives are $10,917.04. Housing Group Consumer Incentives are indexed annually to the rental component of the Price Index.

 

When will I receive my incentives?Australian Money

The NRAS year runs from 1 May to 30 April. ARIF is required to lodge the annual compliance report for your property in May of each year.

 

A significant taxation benefit of an Approved NRAS Property is that the Government Incentives are a refundable tax offset (RTO) and non-assessable non-exempt income (NANE), which means the income is tax free.

 

Another major benefit is that there are LONG TERM tenants and the Vacancy rates are NIL…

 

 

Here are some NRAS Properties available to Smart Property Investors!

9 Basalt St, Caboolture

(4 bed, 2 bath, 2 garage) Offers over $325,000.00 Current Rental $296/week

53 Lennon Blvd, Narangba

(4 bed, 2 bath, 2 garage) Offers over $365,000 Current Rental $328/week

50 Lennon Blvd, Narangba

(3 bed, 2 bath, 1 garage, 2 living areas, ducted A/C) Offers over $400,000.00 Current Rental $323.20/week

25/7-13 Shore Street East, Cleveland

(2 bed, 2 bath, 1 garage, Apartment) Offers over $425,000.00 Current Rental $344/week

 

AP-CSCH412

Patrick Roesch Renovator Blog

Overview:

This Redcliffe Peninsula Property is a low-set brick home with 4 Bedrooms, 1 Bathroom & 2 Car Spaces (double LUG) on just under 1000sqm block.

It features:

  • a large fully fenced in-ground pool with partially completed water feature
  • 2 Bedrooms with Built-ins, 1 without & a 4th Bedroom with room to build in a Walk-in Robe and Ensuite
  • Dated Kitchen and Dining area that flows out to a covered rear patio
  • large living area/loungeroom
  • stripped out bathroom and separate toilet
  • fully fenced yard, DLUG/Workshop, garden shed, double-gated side access

The Owner has been making some DIY changes to the property over time, including:

  • stripping out the bathroom, adding dual-shower heads where the bath used to be and partially tiling with very dark tiles (to be removed), however it is mostly a blank canvas ready for a new modern bathroom installation.
  • built a large ‘water-feature’ structure at one corner of the pool with leaky plumbing and partial slate tiling externally (finish or remove)

It is a distressed property as there has been a separation and the bank are looking for an unconditional contract before 4th October 2018.

Planned Renovations:

Big Ticket Items

  • Install new Kitchen Cupboards, Benchtops, Sinks/Tapware, Appliances, Lighting, Walls/Skirts/Ceiling painted, Tiled Flooring & Window Furnishings
  • Install New Main Bathroom with new Bath, Vanity, Shower Screen, Tapware, Mirror, Wall & Floor Tiles, Lighting/Fan/Heat, Towel Rails, Paint & Window Furnishings
  • Install New Ensuite with Framework, Sheeting, Door, Plumbing, Electrical, Waterproofing, Vanity, Shower, Fixtures & Fittings, Wall/Floor Tiles & Wall/Ceiling Paint

All Other Works

  • Remove 45sqm tiles from Kitchen/Dining/Living floor areas (first) and replace with laminate floor boards or vinyl planks (last)
  • Install led downlights in Kitchen/Dining/Living areas
  • Install underlay & carpet in all 4 bedrooms (last), build in robe in Bedroom #3
  • Install Light Fans and new switches in all bedrooms, renew power points as necessary
  • Paint all ceilings and cornices (formulated anti-mould ceiling paint in wet areas)
  • Paint all walls, skirtings, architraves etc. in our strategic modern colour scheme
  • Repair/replace screens, minor general internal repair and refresh required, replace door handles and other fixtures as required
  • Paving Paint Patio floor, paint ceiling beams and replace lighting (Rear Entertainment Area)
  • Remove partially constructed water feature from pool, replace 6-8 pool edge pavers and install rubber pavers in poolside area
  • Clean up DLUG/Workshop, pressure clean all concrete slab & driveway
  • Using timber boxing, soil, mulch, bark, pebbles and new plants to create strategically placed garden beds to compliment the simple but effective landscaping front & back
  • Repair/replace some areas of timber fencing (minor) and paint sections as required
  • Replace Letterbox with Timber Panel Letterbox

Project Funding Required: $470,000.00

Funding Period: 4 Months (Actual Estimated is 3 Months)

Rate of Interest to Private Lender: 20% p/a over 4 Months = $31,300.00

The Feasibility Financial Summary table is below: