You might also want to consider refinancing – we covered this last week in our company blog. The discounts available from the headline interest rates have increased in the past several years – so you may for example be able to negotiate a .70% reduction on a published rate.
Best of luck!
Not sure if you're still in need of this Jannazo, but for anyone you and anyone else interested, our financial advisory team recently published a white paper specifically on the subject of SMSF and NRAS. I hope you find it of some…[Read more]
An NRAS property is one that has been approved for participation in the National Rental Affordability Scheme. This is an Australian government program to increase the stock of affordable rental dwellings across Australia by encouraging private investment in new affordable housing.
Basically, the owner of the property agrees to let…[Read more]
It's possible to get up to an 80% LVR when using an SMSF to purchase an NRAS property off the plan, so you shouldn't have too much trouble acquiring a property for $350,000. <moderator: delete advertising>
You're quite right – you can opt out of the Scheme at any time. My understanding is that if you opt out part way through the year you receive a pro rata payment of the incentive, but I would have to check this with some of our staff to be 100% certain.
One of the good features of NRAS properties is they need to be located in government…[Read more]
Hi Pete & Jackie,
I know this is a bit late but hopefully still of some use to you or others.
In order to have your development approved for participation in NRAS you need to include at least 20 dwellings. This was reduced from 1,000, but it looks like it still may be outside the range of what you are looking to achieve. See page 34-35 of this…[Read more]
Just wanted to clear up that the NRAS tax offset is a refundable tax offset – that means that if you pay less than $7,143 in tax, you actually get money back from the government rather than lose out altogether. So for example, if would normally pay $2,000 in tax without purchasing an NRAS property, you would get $5,143 back from the ATO…[Read more]