August 29th, 2010
The National Rental Affordability Scheme (NRAS) provides property investors with greater incentives to invest in property than other forms of property investment. Here’s 5 ways NRAS is better.
1. NRAS Tax Offset – The Commonwealth Government provides a tax offet every year for 10 years on NRAS Approved Properties. This is a direct reduction on income tax payable so its more attractive than a tax deduction The NRAS Tax Offset is indexed annually against the CPI for rental. The NRAS incentive payment for 2010 is $6,855.
2. NRAS Tax Free Payment – The State Government provides a tax free payment every year for 10 years on NRAS Approved Properties. The NRAS payment is indexed annually against the CPI for rental. The NRAS Tax Free payment for 2010 is $2,285.
3. NRAS Stampy Duty savings – NRAS incentives are provided for new properties. If the property is purchased off-the-plan or prior to construction then there are substantial stamp duty savings. Stamp duty would only be charged on the land value, not the building/construction value. So the purchasing under the NRAS scheme can save you more than $10,000 in stamp duty.
4. Tax depreciation on building and chatels offer substantial tax savings. Tax depreciation is more substantial when buying/constrcuting new property than buying existing property. NRAS is provided to investors in new property so NRAS investors will obtain better tax depreciation benefits than those purchasing existing investment properties.
5. Deductible interest is a key tax benefit for property investors. Investors using the NRAS scheme have will also be able to claim deductible interest on their property. Importantly, as NRAS investors will be reducing their rental income by 20% in exchange for the tax free incentives, then then reductoin is partly offset by an improved tax deductible interest position.
So on all these five points NRAS provides a more attractive property investment proposition than investing in existing residential property.
More Information
Tags: National Rental Affordability Scheme, NRAS
Posted in News | 1 Comment »
August 16th, 2010
The latest REIV vacancy rates confirm that there was no significant change in the availability of rental homes in metropolitan Melbourne in June.
The rental vacancy rate in June was 1.5 per cent, still very tight with no significant improvement expected.
Rental vacancies contracted in the inner city and outer suburbs. Within 4 km of the CBD the vacancy rate dropped from 2 per cent to 0.9 per cent in June.
Within the suburbs between 4 and 10km from the CBD, the vacancy rate eased from 1 per cent in March to 1.3 per cent.
The vacany rates eased in the middle suburbs from 1.7 to 2 per cent and contracted in the outer suburbs from 1.7 to 0.8 per cent.
The rental vacancy rate in regional Victoria changed slightly from 1.1 per cent in March to 1.0 per cent in June, continuing the trend of fewer vacancies in regional Victoria.
The vacancy rate has remained below 1 per cent in Bendigo for over a year and is now 0.4 per cent.
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August 11th, 2010
Prime Minister Julia Gillard has announced a re-elected Federal Labor Government would help to build 1,200 new affordable rental houses in the Northern Territory. The houses are to be delivered through the National Rental Affordability Scheme (NRAS). (http://www.abc.net.au/news/stories/2010/08/08/2976745.htm)
NRAS is already in place and is providing huge tax offsets and tax free payments to property investors every year for 10 years. Onyx estimates the total NRAS incentive will be $109,288 tax free over 10 years for each house that a property investor purchases.
NRAS requires property investors to buy new approved residential housing and rent them at 20% below market rates. Onyx estimates are that for most investors NRAS can turn cashflow negative property into cashflow positive property.
Onyx already has some NRAS approved houses available for property investors to buy. For details go to http://www.onyx.net.au/nras.php . Properties are also available in many other locations around Australia.
NRAS is a genuine win, win, win program. Renters get more affordable housing; property investors get more profitable investments and positive cashflow; and the government gets the private sector to deliver on its social and housing policies.
Ms Gillard has announced plans to help build new houses for Darwin and Palmerston with rents at 20 per cent below market rates. Properties in Victoria have also been announced and houses in other states are expected to be announced after the election. In total the Government is looking to create 50,000 new houses by the middle of 2012.
Contact Onyx for more information on how you can benefit from the National Rental Affordability Scheme and see our NRAS Approved Property Listing at http://onyx.cpx.net.au/
Tags: Darwin, Gillard, NRAS, property investment
Posted in News | 1 Comment »
July 6th, 2010
Property investment is about to be revolutionised by Onyx through a unique program which utilises a new Government incentive program for property investors. The program could have a greater impact for property investors than the First Home Owners Grant has had for home owners.
Individual property investors could receive an estimated $109,228 tax free for each new investment property they purchase. With the combination of the incentives and other tax benefits from property investment, participants in the program could achieve substantial tax savings. We show an example where a tax saving of 79% could be achieved.
The program will turn many property investment scenarios from negative cashflow to positive cashflow while at the same time providing greater negative gearing tax benefits.
This means existing property investors could extend their property portfolios. Perhaps more significantly it could allow many people to become property investors for the first time because of the positive cashflow potential of the program.
The incentives are delivered through the National Affordable Housing Scheme (NRAS) which aims to encourage 50,000 new rental properties by June 2012.
NRAS passed through parliament in November 2008 and has been aimed at attracting large scale investment by institutional investors. Through its unique NRAS program, Onyx now offers individual property investors access to these substantial incentives offered by the Government.
For comprehensive information click on Onyx NRAS Approved Property Investment Program.
Tags: incentives, National Affordable Rental Scheme, NRAS, positive cashflow property, property investment, tax savings
Posted in Finance, Product News, Property | 1 Comment »
May 26th, 2010
Looking for conveyancing services in Melbourne or regional Victoria? Onyx Legal has the team to assist you.
Call us today to speak to Ruby Janssen about your requirements for conveyancing. Ruby has extensive experience helping many clients with conveyancing in Melbourne. However, (and more importantly) she knows what it’s like to be in your shoes. She has bought and sold around 30 properties herself over the last 10 years. You can benefit from her experience and advice, as well as enjoy the security of quality, solicitor conducted conveyancing from the team at Onyx Legal.
For more information go to http://www.onyx.net.au/conveyancingmelbourne.php
Tags: Conveyancing, melbourne, property investment, victoria
Posted in Conveyancing, Product News | 1 Comment »
May 24th, 2010
I’m self employed. What are my home loan options?
As a mortgage manager, helping self employed people find a home loan requires more careful consideration than for an employee. Unfortunately, as soon as you say you are self employed, many mortgage brokers will simply assume you are looking for a LoDoc (or LowDoc) loan. Don’t be fooled by the name though! Many so called LoDoc loans actually require more documentation than traditional loan products.
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Tags: home loan, LoDoc, Low Doc, self employed
Posted in Finance, Property | 2 Comments »
May 23rd, 2010
Developing a subdivision loans strategy to fund the “soft costs” of the project can be critical to getting the project off the ground. Every subdivision project is different so each project needs its own finance strategy, but let’s look at a typical scenario where the property is already owned and you don’t want to pay the soft costs out of your own pocket.
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Tags: Construction Loan, home loan, Soft costs, Subdivision
Posted in Finance, Property | 1 Comment »
May 21st, 2010
If you’re self employed people and looking for a home loan its natural you would think to go to your bank branch for help. But they are not really equipped to help you get the best outcome. Here’s why.
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Tags: home loan, mortgage manager, self employed
Posted in Finance, Property | 1 Comment »
May 17th, 2010
Property trusts – a safer option?
Following the ‘Global Financial Crisis’ shake-up of the mortgage and lending industry in 2007-2009, a number of investors looked for what they felt would be a safer option for their capital. Many placed their faith in property trusts, believing they would offer a more secure option and better protection for their funds. Unfortunately, it now appears that this faith has not been bourne out.
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Tags: ASX, ASX Property Trust index, Australian Stock Exchange, property investment, property trust, residential property
Posted in News, Property | No Comments »
May 14th, 2010
Onyx has launched a new Subdivision Loan which is ideal for small scale subdivisions where one title is being split into two or three titles. Other loan products are also available for larger subdivisions.
The Onyx Subdivision Loan can finance the full lifecycle of the project from initial acquisition of the property, through permits, construction of new dwellings, title splitting, and even long term holding of the new titles. It is also portable so you can move the loan across to a new property.
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Tags: Construction Loan, Loan, Subdivision
Posted in Product News, Property | No Comments »
