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Govt NRAS

Govt NRAS. There is no relationship implied or real between Federal or Sate Governments and Investors. This information as provided is not endorsed by the Australian and/or Queensland State Governments

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Govt NRAS

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  1. Govt NRAS • There is no relationship implied or real between Federal or Sate Governments and Investors. • This information as provided is not endorsed by the Australian and/or Queensland State Governments • This information reflects the NRAS Schemes understanding of NRAS requirements. • This summary has been provided based on the information available at the time of preparation. • The details should be confirmed by buyers prior to entering into unconditional contracts where the returns anticipated are subject to the relevant properties receiving NRAS incentives. Disclaimer NRAS SchemeHelping you build a better future

  2. Govt NRAS *15 Years in the property industry*Boutique Company*Special personal service to clients Who are we? NRAS SchemeHelping you build a better future

  3. Govt NRAS Strategy*We will look at your personal circumstance NRAS SchemeHelping you build a better future

  4. Govt NRAS If you Fail to Plan you are planning to FAIL Planning We have 20-30 years of holiday after retirement NRAS SchemeHelping you build a better future

  5. Govt NRAS We should be working on creating Wealth for our Retirement Now is the time NRAS SchemeHelping you build a better future

  6. Govt NRAS Bureau Statistics tells us: The Realization There are approx 2 Million Pensionersin Australia and 75% live on less than: $380 per week NRAS SchemeHelping you build a better future

  7. Govt NRAS Imagine monitoring the heating, lights, Air-conditioning and on top of that paying your rates? Pensioners Struggle Do you think they planned for this? NRAS SchemeHelping you build a better future

  8. Govt NRAS Population Explosion Baby Boomers 1946-1955 Government provide pension. NRAS SchemeHelping you build a better future

  9. Govt NRAS Determines our: Australia is the Single Largest Demographic * Living Choices* Spend Pattern* Work Habits NRAS SchemeHelping you build a better future

  10. Govt NRAS Australia is rated 4th Life expectancy Australia’s Population is living Longerthan ever before Men living till 80-82 Years OldFemale living till 86-87 Years Old NRAS SchemeHelping you build a better future

  11. Govt NRAS Who is going to fund your Pension? 1946 - 19 Working to support 1 Retiree 2020 - 3 Working to support 1 Retiree 2050 - 2 Working to support 1 Retiree NRAS SchemeHelping you build a better future In association with Feren-Stockdale & Leggo

  12. Govt NRAS How will they live, save or survive with all the overheads come with living? Government knows mums and dadsare to struggle in retirement NRAS SchemeHelping you build a better future

  13. Govt NRAS This is why we are here tonight to show you how you can take advantage of these for yourself. The Government is helping us by giving incentives grants, tax advantages, etc. NRAS SchemeHelping you build a better future

  14. Govt NRAS Explore your options for Wealth creation and take advantages of this situation. Global Financial Crises What can you do? NRAS SchemeHelping you build a better future

  15. Govt NRAS We have Farming, Minerals, Education, Infrastructure, Medicals How fine is Australia really going? Did you know?Australia the one of the Highest Desirable Destinations in the World? NRAS SchemeHelping you build a better future

  16. Govt NRAS NRAS SchemeHelping you build a better future

  17. Govt NRAS O.P.MOther Peoples Money Opportunity Right Structure Right Strategy Right Leverage Low Interest Rates NRAS SchemeHelping you build a better future

  18. Govterment NRAS It gives you everything you need to make it happen. Now is the Right time to Invest Govt Grant $9,524 1st Year alone Maximum Tax Advantages Leverage Your Money Abundance of Tenants NRAS SchemeHelping you build a better future

  19. Govterment NRAS Started for Essential Services People What is the Purpose of NRAS? Police, Army, Medical NRAS SchemeHelping you build a better future

  20. Govterment NRAS No, Why not? Is it Public Housing? There are criterias to meet like: NRAS SchemeHelping you build a better future

  21. Govterment NRAS No, Why not? Is it Public Housing? There are criterias to meet like: NRAS SchemeHelping you build a better future

  22. Govterment NRAS Who needs to qualify Developers Builders Tenants Managers NRAS SchemeHelping you build a better future

  23. Govterment NRAS Tenants need to register on a waiting list. Qualification for NRAS Tenants Earning criterias for a tenant Single Tenant needs to earn $815+ weekly 2 Adults and 1 Child - $1,397+ weekly NRAS SchemeHelping you build a better future

  24. NRAS SchemeHelping you build a better future

  25. Govt NRAS via QAHC • It is a Federal and State Government backed incentive scheme designed to encourage Investors to develop additional houses for the rental market. • It has the effect of providing an affordable rent program for low/medium wage earners. • It is designed to stimulate institutional and to a lesser extent individuals to invest in rental property. • It is NOT a social welfare program – It targets Middle Australian Families. • It will provide government “Tax Free Incentives” of $623 million for 50,000 new affordable rental dwellings to be occupied between January 2009 and June 2012. • The PM has announced that the further 50,000 incentives will be offered post 2012 if ‘demand remains strong’. The NRAS Scheme: NRAS SchemeHelping you build a better future

  26. Govt NRAS via QAHC Policy Goals of Government The Incentive has two primary policy goals. The first is to increase the supply of new rental housing directly into the housing market. The second goal is to improve affordability for the eligible target groups. NRAS will provide an investment platform to facilitate the construction of 50,000 houses nationally. NRAS SchemeHelping you build a better future

  27. Govt NRAS via QAHC NRAS provides A tax free incentive of $9,140 (June 2010) per dwelling/year for 10 years. Escalated annually at rental component of CPI. The incentive is paid to eligible owners at the end of each tax year in two parts: A Commonwealth Government Incentive currently of $6 855 per dwelling per year as a refundable tax offset or payment; and A State or Territory Government Incentive currently of $2 285 per dwelling per year in direct or in kind financial support. New houses or units are rented at a discount of 20-25% to eligible households. NRAS SchemeHelping you build a better future

  28. Govt NRAS via QAHC NRAS in summary: Properties that apply for and receive the NRAS incentive must remain in the scheme for a minimum of 10 years. There is a provision for: 1. On selling the properties provided they remain in the scheme or 2. For replacing them with the similar properties in the same area or 3. Opting out of the scheme before your 10 years is up by giving QAHC 6 months notice. NRAS SchemeHelping you build a better future

  29. Govt NRAS via QAHC Market Rent is assessed as the Market Value of Rents charged by similar accommodation in the Local Real Estate Rental Market and needs to be justified. Long term Tenancy Agreements provide tenant security There is No Discrimination through discernible quality of housing NRAS housing is distributed randomly through estates generally at a maximum take-up of 30% But entire In-Fill sites may be offered through NRAS (Say 8-50 units). NRAS SchemeHelping you build a better future

  30. Govt NRAS via QAHC Rents and the NRAS Incentive are indexed annually to the rental component of CPI. Current rental indexation for target markets is running at between 6 and 12%. Market Values (Rents) are subject to independent assessment in years 1,4 and 7. Suitable stock can range from studio apartments at < $200pw to family housing > $400 pw. Eligible households have Income thresholds that are indexed: NRAS SchemeHelping you build a better future

  31. Govt NRAS via QAHC The Current Thresholds as at June 09 are: Household income limits are indexed annually on 1 May in accordance with the NRAS tenant income index. NRAS SchemeHelping you build a better future

  32. Govt NRAS via QAHC Providing the incomes reach the upper limit for one year and still remain within NRAS tenancy eligibility criteria provide the income then reduces. Those that exceed this limit are provided a 12 month notice to leave period. Normal tenancy pre-checks are required and income levels do not guarantee eligibility Groups particularly targeted are the community “essential” persons such as policeman, fireman, teachers and nurses. NRAS SchemeHelping you build a better future

  33. Govt NRAS via QAHC Who is the Queensland Affordability Housing Consortium (QAHC) QAHC is a Charitable Company specifically established to maximize the provision of NRAS funded properties. The Consortium aims to provide at least 5,000 new dwellings in Queensland and around 5,000 through inter-state partnerships in NSW and Victoria. QAHC charges an indexed Consortium fee of $12 per dwelling per week. As a Charitable Company QAHC must discount rents 20-25% NRAS SchemeHelping you build a better future

  34. Govt NRAS via QAHC • A 10 year Head-Lease to investor owners of properties. The head-lease gives control to QAHC and security for both the investor and manager. • A Secure Income stream via a mixture of Insurance policies, Self Insurance by QAHC and Management Policies that cover; • 1- Building replacement and owners contents. • 2- Public liability. • 3- Repairs for tenant damage. • 4- Tenant Arrears & Tenant Abandonment & 5- Vacancies via Immediate Access to extensive potential tenant Data Bases. • Whilst not a guaranteed rent, the ‘Secured Income Stream’ provides a high degree of income-certainty for investors. • An Accredited Housing Manager for the NRAS funded properties. • Housing Managers receive a tenancy management fee of 10% of the market rent ( Indexed & excluding the NRAS incentive). QAHC Provides: NRAS SchemeHelping you build a better future

  35. Govt NRAS via QAHC PropertyOwner This structure is designed to give maximum protection to the Owner and increase the level of responsibility carried by the Property Manager by way of the Management Agreement Typical Property Management Structure HeadLease PropertyManager QAHC ManagementAgreement Manage Property Property Tenant Tenancy Agreement NRAS SchemeHelping you build a better future

  36. Govt NRAS via QAHC NRAS is it worth it…. and what’s in it for YOU? The NRAS Incentives are worth $9,140 per year (CPI ADJUSTED) paid regardless of the level of rent you receive. Guarantee for 10 Years. If your annual income is $15,600 and the tenant pays 25% below market value, then you give away $4,420 to the tenant, to receive $9,140 from the Government. That’s right! You give the tenant a small discount and the government gives you a big incentive. In this example you are $4,328 per year better off. The annual incentive of $9,140 is TAX FREE and not assessable for income taxAlso the $4,420 your giving to the tenant can be claimed against your taxable income. The TAX FREE status of the incentive amplifies you investment returns. As you still receive all of your normal depreciation and investment allowances. NRAS SchemeHelping you build a better future

  37. Section 2 NRAS SchemeHelping you build a better future

  38. Why do people invest in property? * We are Leveraging our Money * We can pay off our home quicker * Create an on-going income for the rest of our lives NRAS SchemeHelping you build a better future

  39. If there was a way for you to either create an ongoing income for the rest of your life or pay off your home in 10 years. How much on a weekly basis will you be willing to put aside to make this happen? NRAS SchemeHelping you build a better future

  40. Cash Flow Analysis Property Investment Price $370,000Stamp Duty 4,725 Loan 2,620 Solicitor 1,000 Total Interest Rate Total Yearly Payment Weekly $378,715 6.99% $26,472 $509 NRAS SchemeHelping you build a better future

  41. Cash Flow Analysis Yearly $26,472 Weekly $ 509 Yearly Property Outgoings Rates. Rent Cover Plus.Insurances. $5,000 Maintenance.Property Manager. NRAS SchemeHelping you build a better future

  42. Cash Flow Analysis Yearly $ 26,472 Weekly $ 509 Out Goings $ 5,000 Total Outgoings $ 31,472 $ 605 NRAS SchemeHelping you build a better future

  43. Cash Flow Analysis Yearly $ 31,472 Weekly $ 605 Rental Income Yearly $ 18,121 Weekly $ 350 NRAS SchemeHelping you build a better future

  44. Yearly $ 31,472 Weekly $ 605 Rent $ 18,121 $ 350 Shortfall Bal $ 13,351 - $ 255 Deductions Depreciation Internal Fittings and Fixtures $ 4,657 Building Depreciation - 2.5% over 40 years $ 4,750 Loan Cost / 5 years ($2,500) $ 500 Total $ 9,907 Cash Flow Analysis NRAS SchemeHelping you build a better future

  45. Yearly $ 31,472 Weekly $ 605 Rent. $ 18,121 $ 350 Shortfall Bal $ 13,351 - $ 255 Deductions -$ 9,907 Total Deduct -$ 23,258 Tax Refund Salary $80,000 Tax $18,928 Cash Flow Analysis Total Deductions -$23,258 New Taxable Income $56,642 Tax $10.992 Tax Savings of $7,936 $152 week NRAS SchemeHelping you build a better future

  46. In Summary Total Out goings $ 605 Rent $ 350 Taxman $ 152 Cash Flow Analysis Your contribution $ 103 NRAS SchemeHelping you build a better future

  47. NRAS CASHFLOW Norm NRAS Total Out goings $ 605 $ 605 Rent $ 350 (– 20%) $ 280 Taxman $ 152 $ 165 Cash Flow Analysis Your contribution $ 103 Govt Grant (TAX FREE $9,524) $183 NRAS $ 23+ NRAS SchemeHelping you build a better future

  48. HOME Norm Inv Prop NRAS $605 p.wk Emotional $103 p.wk Calculated Cash Flow Analysis $23 p.wk In your pocket Opportunity NRAS SchemeHelping you build a better future

  49. How long does Property take to double in value and why do we need to know? * We can use it to work out how long it will take to Pay off our home. * We can also work out how to create an ongoing income for the rest of our lives. NRAS SchemeHelping you build a better future

  50. On average property has doubled approx every 10 years In Australia NRAS SchemeHelping you build a better future

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