We’re happy to announce a new release of National Rental Affordability Scheme (NRAS) investment units in Western Australia. We’ve had a lot of interest from investors in the potential of NRAS property investment in WA, so we’re very excited to be able to offer access to NRAS approved properties in Perth. These properties are now available to review and reserve online at our NRAS properties site.
If you are interested in the NRAS program, we currently are offering the opportunity to invest in units in Gosnells, a suburb in southwest Perth. Gosnells is a growing residential area with a population of 100,000 people. Located 17km from the centre of Perth, Gosnells is an ideal NRAS investment location. Well serviced by public transport and the Albany Highway, Gosnells also offers the lifestyle benefits of several nearby national parks. Residents enjoy a pleasant blend of urban and rural lifestyles and the area boasts beautiful walking tracks, parks and picnic areas.
Investing in NRAS properties in Western Australia makes a lot of sense. It’s really a buyer’s market in WA right now. The impact of the GFC and industry worries over the ‘mining tax’ slowed investment in the state over the past few years. This has led to housing values dropping considerably over the past few years. Your Investment Property magazine reported in October that values for many Western Australian properties have decreased by 10-20% from the market peak in October 2007.
However, with a change of government allaying fears about the impact of the mining tax and the state government predicting that growth will expand from 3.75% in 2009/10 to 4.5% in 2010/11, the slump is unlikely to last long. The underlying fundamentals of the property market remain strong in Perth, making it a great time to buy property at a great price.
The state’s population is booming right now, and WA is also facing a looming skills shortage. With high levels of employment, that’s likely to drive a lot of immigration to the state, placing further demand on the rental market. According to the Real Estate Institute of WA, the vacancy rates in the state have stood at 4.5% for the past two years. This figure is expected to decrease as the mining industry accelerates investment encouraging growth and inter-state migration. In fact, units and apartments may be early frontrunners of this trend, with the median unit value increasing 10.6% in the last 12 months.
As I said, we’ve had a lot of interest in NRAS in Western Australia, and when you combine that with how the WA market is looking right now, and I’d advise anyone interested in these investment properties to contact us soon to avoid missing out. To review this opportunity and reserve online, check out our NRAS properties site.
NRAS is a government initiative to encourage investment in affordable housing by providing tax offsets to investors who let their properties at below market rates. It is a combined federal and state government initiative to address the housing affordability crisis facing ordinary Australians. The Australian government aims to increase the existing stock of affordable housing in Australia by 50,000. The innovative scheme works to encourage private investors to purchase new residential properties, which are rented out to eligible households at 20% below market rates. The state and federal governments then provide incentives in the form of tax offsets to the investor. NRAS has been embraced by property investors as the generous incentives (currently $9,140 per annum and indexed at rental CPI for 10 years. An estimated $109,228 tax free) in most cases allow a property investment to become cash flow positive from day one.