New NRAS Melbourne Apartments Off Plan
We are just in the process of launching a brand new off plan apartment project, just 7kms from the Melbourne CBD.
High quality apartments, one and two bedroom options and best of all, investors will have the option of taking an apartment under the NRAS scheme. An option that can have a hugely positive effect on an investors cash flow.
Here’s an example of the positive effect of having an investment property under the NRAS scheme:
Two bedroom example with a purchase price $449,000, from our latest Melbourne project:
As a standard apartment
Rent $21,840 per annum ($420 per week)
Total Gross rental yield $21,840, or 4.8%
Same apartment with NRAS
Rent $17,035 per annum ($328 per week) allowing for the 20% reduction in rent plus another 2% to allow for additional property costs relating to NRAS.
Plus NRAS income $9,981 (for 2012/13) this amount will be greater in 2014 when these apartments complete)
Total gross rental yield $27,016, or 6%
This is just gross yield, but in actual fact, with the tax benefit, the NRAS investor has an even greater advantage.
The investor who has the standard rental property is receiving an additional $4,805 in rent. But this rent is taxable, so assuming that the invetor is in the 38.5% tax bracket (those earning $80,000 to $180,000) then after tax the additional net rent will only be $4,805 x 61.5% = $2,955. By foregoing this additional $2,955 net rent, the NRAS investor will be paid (tax free) $9,981. So the difference in real terms, in this example, is that the NRAS investor is better off by ($9,981 – $2,955) $7,026 just in year one!
With similar results over the next 10 years, the difference in having this same apartment under the NRAS scheme, as oppossed to renting it as a standard apartment is that the investor would be better off by over $70,000.
If you would like full details of our latets NRAS Melbourne apartment project, just leave a comment and we’ll email you full details.