What's happening with NRAS Rents in 2018-19
NRAS CPI Index for Queensland in 2018-19
The NRAS CPI Index for Queensland in 2018-19 is -0.4%. This means rents for all NRAS properties in Queensland will decrease in 2018-19, unless your property has a positive market rental valuation.
How Can I Get the Best Market Rental Valuation?
Under the NRAS Program, market rental valuations only occur for NRAS properties in their fourth and seventh years. To help clients get the best possible market rental valuation, Affinity Property is preparing detailed market appraisal reports for all clients with upcoming 4th year and 7th year NRAS valuations. If you have a property that is in it's 4th or 7th year of NRAS and would like a detailed market appraisal report, please request your market rental appraisal report today.
What happened with NRAS Investment Properties in 2017?
We saw property investment conditions change significantly in 2017. Property markets slowed down in many parts of the country, bank lending tightened and inner city unit sales fell off a cliff. In Brisbane and throughout much of South East Queensland rents softened due to oversupply of new inner city units. We see these conditions continuing throughout much of 2018. The upside to these tough conditions is there are some great property investment opportunities for astute investors. With NRAS properties we saw a number of trends emerge in 2017:
- many NRAS properties sold to owner occupiers - approximately 50%
- most new investors not interested in buying NRAS unless there is 5+ years NRAS remaining
- astute investors are paying down debt and buying well-priced properties
- many landlords forced to refinance from Interest Only to P&I (principal & interest) loans
- more landlords withdrawing their properties from NRAS so they can increase the rent and reduce NRAS administrative and compliance costs
What are the options for my NRAS property in 2018-19?
There is a range of options for NRAS Investors in 2018-19. The options you pursue depend on your financial circumstances, employment, tax position, investment performance of your property, how close you are to retirement and your borrowing capacity. They include:
- Continue to pay down debt against your property and get it positively geared. Ultimately, an investment is only worthwhile if it puts dollars in your pocket and increases your wealth.
- Remove your property from NRAS - Removing your property from NRAS can increase the immediate cash flow and reduce your administrative costs. It may also offer you better financing options. Affinity offers clients a simple 3-step process:
- Restructure the tenant's lease to give you flexibility during the process;
- Prepare formal notice to the NRAS Approved Participant; and
- Remove your property from NRAS and sign new Property Management Agreement and new Lease Agreement with the Tenant
- For more information, contact Sean McCreanor at Affinity Property
- Refinance your Property - at Affinity, we offer professional consultation with specialist NRAS licensed finance brokers. Depending on your circumstances, refinancing may be a great way for you to solve your cash flow problems and simplify your life financially. It's important to ask yourself 'How healthy is your home loan?'. For more information, please contact Eleanor Crosby or phone 0424 363 190.
- Sell your NRAS Property & Move On - Affinity Property is an expert at buying, selling and managing NRAS properties. We can review your circumstances and advise you the best option for selling, including transferring the NRAS to another investor or taking your property out of the NRAS program. We can also help you get the best price for your property. To find out more request an appraisal today