Governor Olli Rehn: Dialling back monetary restraint
National rental affordability scheme (NRAS)
1.
2. Advice Warning
This presentation is intended to provide general information
only and has been prepared by Fidelis Financial Solutions ABN
22 154 372 979 without taking into account any particular
person's objectives, financial situation or needs. Investors
should, before acting on this information, consider the
appropriateness of this information having regard to their
personal objectives, financial situation or needs. We
recommend investors obtain financial advice specific to their
situation before making any financial investment or insurance
decision.
Please note all case studies on this site are for illustration only.
3. Your Finance Adviser
Credit Representative of Australian
Credit Licence Number 389328
5. Why property?
Provides
Diversification to
Potential of your Portfolio
Strong Capital as property is As a result, it
It tends to provide unrelated to other provides the ability
growth
strong but investment classes to
Stable Returns you might have Smooth out the
across all Volatility & Returns
economic cycles of your wider
portfolio
It is a Current historically
Defensive Growth Low Vacancy Rates
asset Australia wide
17. Income Requirements
Tenant
Entry Income Upper income level
Household Type
level ($) to maintain
eligibility ($)
Single person 45,496 56,870
Sole parent with 1 child 62,943 78,679
Sole parent with 2 78,033 97,542
children
Couple with 1 child 77,989 97,487
Couple with 2 children 93,079 116,349
Couple with 3 children 108,169 135,212
The income limits are:
• the scheme allows for a 2 years of income rise up to 25% p.a. before becoming ineligible
19. Incentive
The Tax Free Incentive currently
(annual increase according to
CPI) is of:
$9,781
20. and comprises of:
Tax Free Incentive
10000 $2295
5000 $7486
0
State or Territory Government An Australian Government contribution
contribution of $2,295 per dwelling per of $7,486 per dwelling per year paid into a
year as a cash payment in September. trust account in July.
26. Disadvantages
Unwilling
Some banks are unwilling to lend against NRAS properties. The
1 ones that do, have restrictions on the percentages they will lend.
Increase risks
Tenants being from a lower income social demographic group can
2 increase risks associated with the treatment of your property, wear
and tear, payment of rent, etc.
High Demand and Low Supply
Area limitations to high demand and low supply, rural and areas
3 under development. This may impact the potential capital gains
compared with other locations.
27. Disadvantages
Higher Mortgage Repayment
Payment has to be settled fully before construction begins. This
4 means that there will be higher mortgage repayments during
construction.
Annual Fees
Consortiums charge an annual fixed fee of 7.5% of the total
5 incentive decreasing the total incentive.
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