New Hope for NRAS Property
NRAS round 5 was brought to an abrupt halt last year. Although the scheme is set to continue and the government is honouring existing NRAS arrangements confidence among some investors was waning.
Recently, the Senate Inquiry Into Affordable Housing gave round 5 the green light. That is, their firm recommendation is that in the absence of a superior scheme NRAS should continue. At this time the recommendations have not yet been adopted.
What is the big picture for NRAS and what does this mean for NRAS finance?
In the rush to secure a NRAS property some investors have obtained less than ideal finance. This was understandable, particularly in a hot market. It is time to revisit these loans and look for better options. The cost of your loan directly impacts the viability of your investment.
It is becoming increasingly important to examine the NRAS properties in your portfolio and make sure they are living up to their cash flow predictions. Examining the equity side of the equation is also important. NRAS and capital gains are not mutually exclusive.