March 23, 2009
The National Rental Affordability Scheme (NRAS) is set to help out some property investors in Australia as well as those who struggle to afford rental properties.
In an attempt to make renting more affordable for lower income earners the NRAS scheme gives tax free bonuses to investors who agree to rent out their property at 20% below market rent. The “market rent” is evaluated by independent valuers when the property is completed and every three years there after. It appears that the property has to be a new one to. Which is pretty silly when you think of it – aren’t they by definition the highest cost properties: wouldn’t a renter choose a new rental over the “second hand one” down the street if the price was equal anyway?
