Below is a compilation of Ethan’s most frequently asked questions. If you have any questions which are not addressed below, you may contact us by phone or email.
If the property is locked into a Head Lease for 10 years, 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 from a selection of Ethan approved Property Managers.
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.
If there is a caveat or interest lodged on the property, may that 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 the 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 the current market rate and can be supported by a valuation.
Is the Investor required to pay compulsory insurance premium 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 for services 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 the full market rental.
Can I manage (ie, self-manage) my NRAS property?
No. Your property must be managed by Ethan Residential or one of Ethan’s Appointed Property Managers.
Can I buy more than one property?
What happens at the end of the 10 years?
You can sell or keep the property and the market rent returns to the normal rent. The property is automatically removed from NRAS.
Can I live in an NRAS property?
No. It must be rented to an Eligible Tenant who cannot be the Investor.
Can I sell my NRAS property?
Yes. Your property can be sold and the new buyer can elect to keep the property in NRAS for the remainder of the 10-year period (and receive NRAS incentives as the new owner) or remove the property from NRAS and rent it out at market rents or become an owner occupier.
Can I remove the property from NRAS and sell the property at any time?
Yes. An Ethan NRAS Property is not locked into NRAS or other legal obligation (such as a head lease). However, the Investor must provide 90 days’ notice to Ethan to remove the property from NRAS and, once removed, the property cannot be returned into NRAS.
Are there any exit fees or any other implications of removing my property from NRAS?
There are no exit or penalty fees from removing the property from NRAS. Once removed from NRAS, you will receive no future Annual NRAS Incentives except for any accrued (on a pro rata basis) to the time the property was removed from NRAS.
Am I paying above market prices for the property because it has a NRAS incentive attached?
No. Under the Ethan model the properties are sold at current market prices and can be supported by a valuation at time of finance approval.