Ethan NRAS Investment Model

The Ethan NRAS model involves a direct property purchase by an investor or Superannuation Fund. The collection of rent and an incentive from both State and Federal Governments boosts the income yield if the property is made available for Affordable Housing. This investment model includes both a cash and capital growth return that is superior to traditional direct property investment.

The model allows developers, real estate firms, large and small investors to access the NRAS and direct property investment without complex structures or costly fees, which allows flexibility for each investor to choose to continue or exit the program at any time. The model is similar to traditional investing but with the added benefit of an additional income stream from the NRAS.

Property Purchase

This Ethan NRAS model starts with your purchase of a home that has been approved by the Government for use as affordable housing. The dwellings will have been approved according to their suitability, size and location.

The approved properties are in locations with high rental demand. These areas often have rental rates above average due to the desirability of the location and a lack of rental stock.

Properties that are offered to investors for purchase are constructed by different developers across Australia and are sold on the basis that they are approved and will participate in the Ethan NRAS model. The market value of these dwellings is no different to equivalent properties of the same size, location and inclusions. All of the properties include turnkey features to ensure the dwellings are ready for occupancy by tenants immediately upon completion.

Rental of Property

An eligible tenant will be sought for your property as soon as it is ready for occupancy. To comply with Government requirement, the property must be leased at 20% below the market rental value.

Rental Management

To ensure your investment’s value is preserved and returns are maximised, the dwelling will be professionally managed. Apart from the NRAS specific obligations, the property management services are the same as what would be expected from local real estate agencies acting for a residential landlord.

These activities include the tenant selection process, property maintenance, periodic inspections and rent collection, just to name a few. There are further specific requirements under the NRAS that must be completed by the rental manager.

We work with selected agencies and organisations that have an understanding of the Scheme and have undertaken the appropriate training to ensure the properties remain eligible for the entire tenure period of 10 years. We will oversee and manage the documentation process of required agreements, thus ensuring that all requirements are met.

Government Contribution

Under the NRAS, both State and Federal Governments contribute by way of a cash payment. This incentive will be paid directly to you after an audit process is completed in June and September each year. The income received from the incentive is tax-free.

Expenses

Like any direct property investment, the owner is required to pay the expenses that relate to the property. These expenses vary from property to property and by State, which may include council rates, water charges, land tax, insurance, interest and bank charges. There is only one additional fee required for an independent market rent valuation under the NRAS, which allows the rent to be increased periodically.

Below is a diagram showing the cash flow and entities involved that provides a successful Ethan NRAS model. As with any investment, please ensure that you seek professional financial or legal advice to ensure this investment is suitable for your individual circumstances.

What are the commercial
benefits of investing in an NRAS property?

NRAS creates a new residential property asset class for property investors and presents a new investment opportunity in the Australian market. It is intended as a commercial, profitable investment for participants while also increasing the supply of affordable housing in Australia.

The residential rental market represents a good long-term investment with the opportunity for significant capital gains. Investors in the Scheme can expect to benefit from the annual tax-free NRAS Incentive for 10 years, rental yields and capital gain.

In Summary

As one of the largest NRAS approved providers across Australia, our extensive background provides both the experience and knowledge needed to successfully provide a commercial return to investors and meet the requirements of Government initiatives.

The Ethan NRAS model will allow you to:

Purchase a NRAS property and receive cash incentives bi-annually.
Access a direct residential property investment in a highly sought after location.
Reduce your tax burden through negative gearing.
Earn at least $109,228 in tax-free income from Government incentives for every property purchased.
Enjoy positive cash flow from brand new property.
Access finance strategy advice to help you purchase the property using little or none of your own money.
Be supported by a cohesive, experienced team of mortgage brokers, NRAS managers and tenancy managers.
Make a socially responsible investment that benefits valuable members of our community.
Enjoy increased equity as the property grows in value.
Have flexibility so you can opt out of the scheme at any time.
Build your property portfolio.