Frequently Asked Questions

Is the property locked into a Head Lease for 10 years
or can I exit the system and sell the property at any time?

There is no Head Lease under the Ethan NRAS model and the investor is free to exit the property at any stage of the Scheme.

 

Can the investor choose their own rental manager or is the management rights
sold to a management company who maintains the rights to all management fees?

The investor can choose his/her own property manager who is capable of providing the service.

 

What documentation is involved in the program?

The documents include:

 

• An agreement between the investor and Ethan.
• A Real Estate Institute lease between the investor and the tenant.
• A Real Estate Institute property management agreement between the investor and the property manager.

 

Is there a caveat or interest lodged on the property that may restrict the investor obtaining finance?
No. The property can be financed similar to any investment property.

 

Can the investor choose who tenants the property?

Yes, providing the tenant is eligible under the NRAS program.

 

Is the investor paying above normal market rates for the property
because it has an NRAS incentive attached or because it returns a higher yield?
No. The property is sold at current market rate and can be supported by a valuation.

 

Does Ethan Affordable Housing have an ATO advice that ensures the investor
will be entitled to receive the incentive in a tax-free form for the entire 10-year period?
Yes.

 

Is the investor required to pay compulsory insurance premiums or
additional consortium fees by being a part of the Ethan NRAS model?
No. The investor has the choice of insurance company and only pays forservices that they request to be completed.

 

Can I sell my NRAS property or remove it from the Scheme and rent it at market rates?
Investors no longer wanting to participate in the Scheme can sell their dwelling or cease their participation prior to completion of the 10-year NRAS term without incurring any early exit penalties:

 

• A dwelling can be removed from the NRAS and sold on the open market without obligation.
• A dwelling can be sold to another investor who undertakes to comply with NRAS obligations.
• An owner can provide an equivalent dwelling that can be as a substitute dwelling for the remaining part of the 10-year period.

 

At the end of the 10-year NRAS period, properties can be sold on the open market or continue to be leased at full market rental.