Big year in store for NRAS despite Government flood-funding diversion
In the last week of January 2011 the federal government announced that NRAS funding is to be partially diverted for rebuilding after the recent floods. For property investors, it's a case of deciding if the NRAS option is worth while or maybe something to skip. We see this as a opportunity, and so does it seem to a lot of the professional investors out there.
The lash back comes from the fact that 15,000 houses and $264 million have been removed from the NRAS program, reducing housing affordability and allowing fewer property investors to participate in the scheme. Builders have been hit by this with even some developers having their land holdings cut in half just over night.
Our view is that while other government programs have been cut completely, the Government has definitely confirmed its commitment to funding incentives for 35,000 NRAS properties. And even better, these incentives will not be changed, so that NRAS properties will continue to deliver their existing and future financial benefits to property investors.
Now here's the really exciting part: the vast majority ( over 8,000 so far ) of NRAS incentives have been allocated to properties that have yet to be constructed and are yet to be purchased by investors. BUT the best part is that thousands of NRAS incentives have been allocated to Approved Participants but it takes time to get the associated properties developed. We expect these properties to come onto the market throughout this year and into the next. With only 2 head conglomerates in approving the builders and developers applications there is no wonder why there is a shortfall. All of this really is great news for investors as the NRAS is just about to get into its stride.
Instead of there being less NRAS properties available, we are about to see many more come onto the market in the next few months and many more good ones getting snapped up quick. As a result we anticipate that 2011 will be the year of NRAS Property Investment Bonanza.
Greater understanding of the scheme by the property investment community and by the major lenders, combined with an increasing number of available properties will all lead to a growth in the popularity of the scheme. On the other hand, the Government has reduced the supply of NRAS properties in the longer term, so we are not sure how long the NRAS opportunity will be available for property investors, and in what quantities. Now that NRAS is better understood, we expect that there will be greater competition for NRAS properties this year, as investors recognise that now is the time to act.
We are already finding in the first month of 2011 that NRAS properties are only staying on the market for very short periods of time, in some cases only days. he recent announcement by Julia Gillard will serve to increase demand for NRAS because there is now a scarcity value to obtaining an NRAS property.
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To make sure you don't miss out on this unprecedented investment opportunity follow these simple steps:
1. Learn more about NRAS by obtaining our NRAS Incentives Report.
2. Speak with a financial advisor as to your best options and how NRAS can suit your needs better than a standard investment.
3. Develop your NRAS strategy now so you can act quickly when the time comes. Contact us on 1300 407414 if you need help with this.
4. Stay informed about current property offerings by regularly checking our NRAS property listings at www.nraspropertiesforsalesaustralia.com.au or calling us for an updated report.
5. Keep reading for the NRAS property releases as soon as they become available.
