Despite its introduction back in 2008, the National Rental Affordability Scheme (NRAS) is still being under-utilised by Australian property investors. Overall it’s a highly beneficial scheme for investors, with an approximate $10,000 annual rental subsidy that’s worth taking seriously. If you’re thinking about broadening your portfolio to include NRAS properties, here’s what you need to know about the scheme:

What is it?

The NRAS is a federal government initiative designed to combat the problem of affordable housing. It’s not a public housing program, but rather a tax incentive to encourage private investment in the affordable rental market.

How does it work?

NRAS offers a tax-free incentive to property investors who build and rent dwellings to eligible tenants at a rate that is 20 per cent below the existing market rate. The current annual incentive is set at $9,981 per dwelling, for a maximum of 10 years. This incentive is indexed annually to the rental component of the CPI.

Who can participate?

Individual investors, financial institutions, private developers, not-for-profit organisations and community housing providers, who build, own, finance or manage NRAS dwellings.

How does it compare to conventional property investment?

Essentially the NRAS offers property investors all the benefits of a conventional investment property, with added annual tax-free incentives. NRAS dwellings are still private property (no government holds), and in certain markets the addition of the incentive can provide a better return than market rent. And most importantly, investors can exit the scheme at any time with appropriate notice without incurring any financial penalties. As we say at Silverhall, not all NRAS is good NRAS. The asset needs to be positioned in a growth market, otherwise you will not benefit from an increase in the capital value of your investment.

Want to find out more about NRAS properties? Silverhall provides experienced guidance and strategies for property investors. Book a free investment consultation online or call 1300 662 143 today.

Choosing a property manager for your investment property is a significant decision that you will make and can have a large impact on the return you receive from your investment property. Following a few useful tips can make the decision clear and lead to a productive and lengthy professional relationship.

Contact and arrange to interview a number of property managers based in the area where your investment property is located. Ideally, the property manager you select will have experience with managing similar properties and a good understanding of the area and the local market. It is important to think of it as a job interview and that you are looking to find someone that shares your philosophy and expectations of the property.

It is important to discuss and agree on your expectations of the property manager’s role and the strategy you have for your investment property. Having a similar view on rent price is obvious, but also whether you’re willing to allow the property manager to advertise and select tenants, handle the repairs and maintenance to the property (such as hiring cleaners, plumbers, etc.) and do any inspections of the property. Alternately, you may wish to be consulted on all of these matters before the property manager proceeds. Having a clear understanding for both owner and manager will ensure a successful working relationship.

Silverhall is a research based property advisory business offering guidance and strategies for property investors via their comprehensive seminars, e-books and one-on-one consultations. To utilise specialist research and advice on where best to invest in properties in Sydney, contact them 1300 662 143 or visit their website.

One of the key factors to successful property investment strategiesis being able to look beyond the local conditions and recognise the larger forces – both social and economic – that are impacting on the property market, such as population and growth.

With the so much information to absorb or decide what is right, it may seem difficult to know where to invest next. However, with expert advice from experienced professionals who understand local conditions as well as larger trends, you can position yourself to increase your wealth with sound property investments.

The most basic principle of business, of any kind, is supply and demand. This is true of property and is a useful tool to apply when considering your next investment property. Australia’s population is growing steadily, in fact at rate faster than homes can be built in certain areas – through both births and immigration. This can provide opportunities for investors as it creates demand for new houses to be built to meet the needs of these new arrivals. The majority of the population growth has been in the outer suburbs of the capital cities and this can mean potential rental incomes and capital growth for investors holding property in these regions. In short, this population growth can be great news for investment property owners.

Property Investment Strategies Sydney

Want to learn more about building a smart investment portfolio? Silverhall runs informative investment property seminars in Sydney. Find out more online or contact their team of professionals on 1300 662 143.

Whether to buy an off-the-plan property is right for them is one of the common questions investors have when looking to invest in properties. Solid research and consideration of your financial circumstances are key aspects, and there are some clear benefits of investing in an off-the-plan property that may appeal to some investors.

If you are among the quickest investors you have the chance to get into the project on the ground floor. This can mean that before building commences, developers commonly offer lower prices to attract the necessary funds to meet their financing agreements. Once building has commenced, prices for these properties may increase. This can be a quick capital gain for the early investor. Another benefit of getting in early is that the range of properties available is the largest and you can choose a property with the best floor plan to appeal to future tenants.

Another appealing attribute of buying off-the-plan property is the tax benefits available. New properties attract the most depreciation and an off-the-plan property is the best way to maximise these tax breaks. Another great benefit of off-the-plan property is once you have paid your deposit – roughly 10 per cent of the property price – you may have up to 18 months’ time or longer before you will have to pay the outstanding amount. This extra time can provide a significant opportunity to save money to lower the amount you need to borrow and reduce loan repayments.

Are you looking for positive cash flow properties but not sure where to start? Silverhall provides guidance and strategies for property investors. Book a free consultation online or contact them today on 1300 662 143.

Before you invest in properties it is always wise to examine the market for trends, but also to look beyond just the property market and consider larger social and economic factors that can influence property value.

Smart investors remember that the best rental returns and strongest capital growth areas aren’t necessarily in the place where you would choose to live. That is why it is important to make sure you develop a strategy that suits your budget and goals, and then arm yourself with the best research to find the right property to invest in to meet your criteria.

In Sydney, experts see potential for the property market to improve in 2012; however, it may be an uneven affair across the city and its suburbs. Some suburbs are displaying value and looking positive for 2012, while other suburbs seem likely to remain flat or stagnant.

The best suburbs for investors looking for solid capital growth and strong rental returns appear to be in the south west and western suburbs of Sydney, particularly at the lower to middle end of the market. Supported by significant employment growth and infrastructure spend, there are certain suburbs around key distribution hubs which are considered likely to have strong rental returns on investment properties in 2012. These range from units to houses, Silverhall has recently completed research on two exciting projects which clients can now obtain their research on.

For more information on property investment strategies, check out Silverhall’s range of free informative ebooks, or contact them on 1300 662 143.