What can I say… I'm an addict!

My local tip fees went up 40% when the CT started. Hard to see why… all the methane, perhaps?

In that case there should surely be a large bill for our nation's capital!

– Steve

Hi,

Unless it is an opportunity to buy (rather than develop) a nras property as an investment, I'm not sure what the opportunity is.

 Here is a quote from the government's website:

"How can investors participate in NRAS?

Interested investors need to apply to the Australian Government for an allocation of NRAS Incentives.

Investors at scale may apply for NRAS Incentives for individual projects, or partner with not for profit housing providers and property developers to build properties in different locations.  Consortiums and non entity joint ventures are common models for NRAS projects.

Because NRAS aims to encourage large-scale investment in affordable housing, NRAS Incentives are unlikely to be suitable for small scale individual investors.

Instead, individuals who are interested in purchasing just one or two NRAS properties as an investment can become involved by approaching entities who are applying or already have a larger allocation of NRAS Incentives."

– Steve

Hey Kezza111,

A good accountant would come in handy, and a lawyer too.

Accountant

A unit trust will probably be the structuring weapon of choice, as it gives each of you a fixed interest.

You can even have the units owned by a family trust if you want even more structuring options.

Each year you each get your share of the income and declare what you receive on your income tax returns.

Lawyer

You will also want to add in a good heads of agreement about how the property is going to be managed, valued, what happens if someone wants to sell, etc. All might be good now, but change is the one constant you can depend on.

I can't recommend highly enough the wisdom of 'finite period and finite outcome'… that is, nominate the time and money outcome you want coming in.

Sadly, when money is involved, even the closest friendships are often sorely tested.

Operational

From an operational perspective, you might want to consider paying interest on the money you each contribute which (aside from the purchase of units) will be treated as a loan. This keeps it fair.

All the best,

– Steve

Hi,

Equity is the difference between a property's value and the debt owing on it.

Equity can be created by two factors:

1. Increase in value (with debt not rising by more); and / or

2. A decrease in debt (without property values falling by more)

Subject to you being able to prove you can afford the loan, most lenders will be willing to allow you to access up to 80% of any available equity.

In your case though, it seems you have been 'qualified' for 100% of the purchase price. This means that you wouldn't need to tap any equity to pay for the purchase price, but you might to pay for the related purchase costs (stamp duty, etc). Otherwise you will need to pay those costs using cash.

The question that is not clear from your post is whether you qualify for the 100% loan based on your current income, or whether the lender wants the additional security of the investment property too.

– Steve

Hi,

I'm not sure of specific areas or streets, but a free tool you can use to gather info on sales for the area is the past history of sold properties on realestate.com.au

You can look at them on this map.

An assumption would be that higher sales prices equate to better areas. Also look at the current properties for lease for ideas about vacancy and rental values.

– Steve