I’m a real supporter of helping others by providing rental accommodation for those on lower incomes. We have done this many times. However it needs to be a win-win situation and by that I mean it needs to work for you (financially speaking) and the tenant.
I understand that the NRAS scheme offers investor’s great tax incentives however let me ask you a question. Are you investing in property to grow real wealth or are you investing in property to save tax?
I would hope your answer is not the latter.
The concern I have with NRAS is that as they are government projects, you would be limited to who could rent the property, how much you could increase the rent, who could buy the property when you want to sell and how much capital growth you would gain over a property cycle.
I have no doubt that you would receive capital growth however I question how strong it would be compared to a normal rental property in an area highly sought after by tenants.
My personal opinion is that the NRAS scheme might be a “good” investment however I prefer “great” investments. “Great” investments allow me to continue building my property portfolio due to the strong capital growth that I can access and use to purchase more properties.
Until next time, happy investing!