Property down…but our sales up

We keep reading doom and gloom about the property market and the building industry but based on our experience there is no better time to invest in new property.

With the Government offering up to $120,000 tax free incentives over ten years plus all the tax concessions of negative gearing along with falling interest rates the time is right now.

There is a great opportunity to build a sustainable investment portfolio if you are lucky enough to get your hands on the limited stock we have available right now. While much more stock will become available in the new year there will be opportunities to add another one or two more properties soon and build for the future.

…So we don’t entirely agree with David Koch.

Sunrise breakfast host David Koch, says the market will start to turn around once the economy picks up and investor confidence returns.

Koch says anyone following the property market might be left a little bit confused by “contradictory news headlines and expert opinions” but says the bottom line is that in the medium term, “the tough times for Australian property appear set to continue”.

“Further interest rate cuts, continued low unemployment, population growth and improving housing affordability will all help to support the house price growth when it happens. “It’s just not happening yet,” he says.

But NRAS gives investors the opportunity to get into the market before it happens.

And Barrie Gaubert from Mortgage Managers – Iden Group agrees:

“Brokers should get on board with this 100% really quickly,” says Barrie Gaubert of mortgage manager Iden Group, speaking to Australian Broker TV about the National Rental Affordability Scheme (NRAS).

“I think investors are interested in this because it is a very good incentive for them, and I think the scheme from the Government’s point of view is very good because it is actually attracting the right good quality tenants that investors want,” Gaubert explains.

Mortgage broker Kiran Saldanha of The Finance Professionals agrees the NRAS scheme provides good opportunities for the right investors.

“Where NRAS fits into the strategy in terms of my clients it brings to the fore a negative gearing possibility with refundable tax offsets that actually lets a person look at a positively geared property from the cash flow perspective,” he says.

“Also from the perspective of now being able to hold property in self-managed super funds, with the benefits that NRAS brings to the table, it’s really an ideal opportunity,” he says.

Saldanha says that many investor clients will find the scheme useful – if they can find the stock.

“From a broker perspective I am struggling at this point in time to find good stock for my clients to invest in,” he says. “ I would think most risk profiles out there from a client’s perspective would allow them to hold an NRAS property.”

The good news for NRAS 4 SA clients is our Mortgage Broking partner, Advantage Finance has been on board with us and NRAS from the very beginning and as such we get near 100% approval rates whilst others are still learning about NRAS.

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