NRAS Housing vs. Traditional Housing Properties

[nrasproperty01]

I want to share you these ideas:
Investors can be given with a free of charge incentive of about $9,140 yearly for up to 10 years for every authorized accommodation leased for about 20% lower than the existing market price.
As weighed against traditional housing investments, the further incentive at no cost can present improved profits to investors than the market fees. Investors can relate asset expenditures and non-cash inferences and payments in opposition to smaller measurable leasing returns that will strengthen the pessimistic gearing advantage.
What can you say about these statements? Feel free to share your thoughts with me=) Thank you!

[RAR]

You are correct .... about the government incentive.... but If you want to invest in propety and you are going to build be ready to deal with the governments approved builder.

My experience:

1 The builder did not build in accordance with the contracted plans.
2 The builder did not build in accordance with the approved plans (held by council).
3 The builder built in accordance with the not approved plans without my knowledge.
4 No variations.
The builder did not get any variations for the following:
Example 1: Black colourbond roof and not a light coloured tiled roof (as per my contract).
Example2: Separation wall is a CSR 502 not an "interhome" separation wall (as per my contract).
Example3: One electrical meter box not two (as per my contract plans).
Example4: Pine frames and trusses instead of steel (as per my approved plans held by council).
CERTIFICATION
The building certifiers did not certify my NRAS investment property in accordance with the contract plans.
The building certifiers did not certify my NRAS investment property in accordance with
the approved plans (held by council).
The building certifiers certified my NRAS investment property in accordance with the not approved plans without my knowledge.
All attempts by me to have these issues resolved have failed.

It kinda takes the shine off the incentive.

I estimate 30-50K as a minimum.

Cheers

[The King Game]

What is a NRAS property? Never heard the term and can't be bothered to Google it. Sounds like an insurance fund. Info please.

[RAR]

Hey King Game.....

Check out QAHC website.

The only thing they wont tell you of course is that it is a government initiative that is not government supported.

That their are no quality controls on the end product.

I have talked about the approved NRAS builder issues to the State and Federal Ministers - all I got was, your on your own, and sympathetic but thats it ( If you want a copy of the letter from the Federal Minister let me know).

In the words of the NRAS builder to the effect ...... it's just an investment property, it has a roof and a fire wall so get over it.

The point I am making is this, don't be fooled by the incentive payments from the government, you need to look at the bigger picture and be aware that the NRAS has the potential to feed you to a very big well funded NRAS approved building company who is use to dealing with investors and knows exectly what they can get away with is my experience.

I estimate that I lost 30-50K out of my contract without so much as a single discussion on the differances from the contract.

Simply be very aware that behind this government money is a NRAS builder waiting for you - thats my view.

Cheers

[The King Game]

Sorry, I don't get it. Call me daft or something but what is the connection between NRAS and the QAHC website? I am guessing you don't like the whole thing but still can't see the connection. Nor how people lose money.

[Jake The Ripper]

so basically some builders are ripping people off. is that it? nothing new in that.

[RAR]

To the best of my knowledge the NRAS uses the QAHC to apply the government funding, you will often hear it referred to as the "instrument".
I thought the QAHC website was clear.... but long winded.
You lose money when the contract you sign is devalued by the NRAS approved builder does not deliver what is defined in the contract is my experience.
For example... I signed a contract for two electrical meter boxes... one on each side for each duplex. This makes it easy for setting up a strata title for each one.
What I got was One electrical meter box on one side and the safety switches cut into the firewall of the second one devaluing the property. In my view makes it more difficult to strata title and have had a quote for about 25K to correct.
Another example is the fire wall... I paid for an "interhome" separation wall. This system has superior acoustic properties which makes the investment property easier to manage and a better place to live in. What was installed was, in my view, an inferior product with a much lower rating in terms of its acoustic qualities devaluing the property in my view.
I ordered light coloured tiles for my NRAS property... what was delivered was a charcoal black colourbond roof... making my NRAS investment property a hot box in Queensland and more costly to keep cool in summer further devaluing my NRAS investment property in my view.
The value of my NRAS investment property as a result has been devalued without my knowledge or consent... no variations.
It's like buying a car, and you want a "ss sports" version with all the trim etc.
You pay a deposit return to collect your car and get told this is your car... its an "executive" version and not the "ss sports" version that you paid for.
Same for the NRAS investment property that I had built.... it did not meet the contractual obligation and I lost about 30-50K in material value from my contract is my estimation.
When it comes to re-sell my NRAS it is those features that I paid for that I did not get, that make it a good investment vs a not as good investment.
This is in no way a complete list... just a couple of examples.
I hope that explanation helps.
The point that I am making is that if you are building through this program be very aware of the potential issues that I experienced.

Cheers