Thinking of buying an NRAS property? The National Rental Affordability Scheme (NRAS) is a long term commitment by the Australian Government in partnership with the states and territories, to invest in affordable rental housing. The scheme commenced in 2008 with the view of increasing the supply of affordable rental housing by 50,000 dwellings across Australia by June 2014. As an incentive, the government is offering tax free $9,981 per dwelling, which is indexed each year to the rental component of the CPI.

1. NRAS
Information correct as at 1st August 2012, and subject to change without notice.

2. NRAS Overview
The National Rental Affordability Scheme (NRAS) is a long term
commitment by the Australian Government in partnership with the states
and territories, to invest in affordable rental housing.
The scheme commenced in 2008 with the view of increasing the supply
of affordable rental housing by 50,000 dwellings across Australia by June
2014.
As an incentive, the government is offering tax free $9,981 per dwelling,
which is indexed each year to the rental component of the CPI.

3. NRAS Tenants
NRAS Tenants tend to be Key Workers, such as childcare workers, nurses, police
officers, fire fighters and paramedics.
Investors can pick any tenants for NRAS, as long as these tenants do not exceed
the income threshold below:
Household Type Entry income level ($) Upper income level to maintain eligibility ($)
Single person $45,496 $56,870
Two adults $62,899 $78,624
Sole parent with 1 child $62,943 $76,679
Sole parent with 2 children $78,033 $97,542
Couple with 1 child $77,989 $97,487
Couple with 2 children $93,076 $116,349
Couple with 3 children $108,169 $135,212

4. NRAS Products
NRAS is available on Iden’s Balanced and Fair Go products.
All normal policy applies to NRAS plus some additional restrictions as
follows:
-NRAS Rental income will be used for servicing (if LMI applies only 65% of
market rent can be used)
-Maximum LVR IS 90% (Genworth is the only LMI for NRAS)
-Full Doc loans only
-Vacant land is not acceptable (construction is available)
-Apartments / units / townhouses are not acceptable
-Refinances can be considered only on a $ for $ basis (up to 80% LVR only)
- Independent Legal Advice (ILA) is strongly recommended
-If required for servicing you can use 80% the Government Tax offset which
is currently $9,981p.a. (can only be used up to 80% LVR only)

5. NRAS Products (con’t)
-Security must be leased or managed to an affordable housing
consortium approved by Iden and which permits subsequent purchaser
to not participate in NARS and for security to be unencumbered by the
NRAS scheme. A list of consortium’s are below:
- 4 Walls Ltd/Urban Affordable Housing
- Ethan Affordable Housing
- Affordable Housing Consulting Pty Ltd
- Affordable Management Corporation Pty Ltd
- Aspire Housing Group
- Providence Housing Pty Ltd
- Brisbane Housing Company Ltd
- Quantum Housing Group
- Queensland Affordable Housing Consortium
- Questus Funds Management Pty Ltd
- Yaran Residential Investments Pty Ltd
- Community Housing Canberra Ltd

6. Key facts about NRAS
-NRAS dwellings are private property. No Government holds caveats or
claims over NRAS properties
-NRAS properties can be sold without penalty during the 10 year holding
period
-At the end of the 1-0 year period the property reverts to full control of
the investor, who has no ongoing obligations to the Governments
-Where dwellings are approved under NRAS, investors should be aware
that this does not mean that the Government endorses, guarantees or
secures the investment in any way
-The Australian Government has made a 10 year commitment to NRAS,
The scheme is managed and regulated under the legislative framework
provided through the National Rental Affordability Scheme ACT 2008

7. How to submit an NRAS application
Submitting a NRAS deal remains as per standard process, with the
addition of the following:
-The new NRAS Assessment criteria form is to be completed and
submitted with the application. This form includes a list of approved
consortium’s. This form is available from our Iden site.
-The serviceability calculator needs to reflect the Government tax offset
as an addback. The Government Tax offset is currently $7,486 per
dwelling (80% of $9,981) and is indexed each year to the rental
component of the CPI.

8. Iden Loan Services Pty Limited ACN 095 728 868
Australian Credit Licence 378333