[Novice007Member@novice007Join Date: 2013Post Count: 1]

February 13, 2013 - 1:08 am

Pros:

– Most NRAS will be positive or neutral cashflow (on Interest Only loan)

– Most NRAS properties will be easily rentable as their rent is 20% lower than market value

– Rents can be reviewed and adjusted to inflation

– 10yrs incentive backed up by Govt

Cons:

– Not always in the most desirable locations for capital growth

– Property management fees are higher

– Upfront costs are higher

– Purchase price is higher than non-NRAS

– Banks may not take into account the NRAS incentive and also might value the property as worth less than purchase price (so you may have to dig into your own pockets for the difference!)