Can I exit the scheme before the end of the ten years?
NRAS dwellings can be sold without penalty during the 10 year holding period if:
- a dwelling can be sold to another investor who undertakes to comply with NRAS obligations; or
- an equivalent dwelling can be offered as a substitute dwelling for the remaining part of the 10-year period.
What happens if I sell my NRAS property?
Where dwellings are sold within that period, they may either be eligible to be retained in NRAS (and continue to attract an Incentive) or not eligible to remain in NRAS, depending on the circumstance of the sales. Where dwellings are sold or otherwise removed from the Scheme and are not eligible to remain in NRAS, Incentives will not be paid for the NRAS year in which the sale or removal occurred.
How do I know the scheme will last ten years?
The Australian Government has made a 10 year commitment to NRAS. The Scheme is managed and regulated under the legislative framework provided through the National Rental Affordability Scheme Act 2008.
What happens at the end of ten years?
At the end of the NRAS 10 year period, properties revert to full control of the investor, who has no ongoing obligations to the Australian Government.
How long will NRAS last?
The Australian Government is committed to supporting up to 35,000 high quality homes and apartments in the period to 30 June 2014, with support for a further 15,000 dwellings in 2015-16.
The Australian government has announced that new NRAS properties will continue to become available for rent until 30 June 2014, and the Scheme will continue for ten years past that date. This date could be extended to meet the target of 50,000 new properties, however it is not certain, so it’s best to try to invest in NRAS as soon as possible.
NRAS is well underway with around 40,000 Incentives allocated to investors to build affordable homes (across Australia at early 2012). 6208 are already in operation and 33,713 are reserved.