National Rental Affordability Scheme (NRAS)

What is NRAS?

The National Rental Affordability Scheme (NRAS) is an Australian Government initiative to address the shortage of affordable rental housing, but it’s also a tax-free, profitable way to invest in property. 

You get all the normal benefits that property investment brings such as potential increases in property values and a stable (non-volatile) investment, as well being able to claim over $100,000 in tax incentives over a period of ten years.

How does it work?

NRAS properties are available to buy or build in approved NRAS areas via government and lender approved consortiums. A list of these groups can be found on the Australian Government’s website here.

The dwellings are then rented to eligible, low and moderate-income households that earn less than a prescribed amount. The rent of your NRAS property will be reduced to 20% below the market rental value in return for significant tax-free credits for ten years.

Benefits of investing in an NRAS property

  • Potential increase in property values
  • A positive cash flow investment property
  • Taxation benefits of $100,000+ over 10 years
  • No property management hassles
  • A choice of properties throughout Australia from various developers
  • Possible reduced vacancy rates due to the rent being 20% lower than market value
  • It’s flexible – you can exit the scheme without incurring penalties

Get your NRAS loan through Bluebay Home Loans

Bluebay Home Loans can arrange your NRAS home loan for construction or established purchases and will lend up to 90% of the property value. If you’d like to find our more about NRAS and the loans we have available, fill in our contact form or call 1300 258 229 to speak to a home loans consultant.