Frequently Asked Questions - Investors
Whilst all care is taken to ensure the Aspire website remains accurate, please refer to Aspire's Disclosure Document and NRAS Participation Agreement for the most up-to-date information. To the extent that there is an inconsistency between the website and the Disclosure Document/NEJV, the Disclosure Document/NEJV will supersede all information provided on this website.
A non-entity joint venture arrangement generally is characterised by:
- a contractual arrangement between two or more parties;
- undertaking a specific economic activity;
- parties having joint control of the activity;
- sharing of product or output (not a sharing of profit); and
- cost sharing
The State Incentive will be paid as cash into your nominated bank account (this means the funds are deposited from the State Government into Aspire’s trust account and then transferred to your account). The Federal Incentive will be claimed by you on your tax return. The NRAS Certificate also known as the Refundable Tax Offset (RTO) will be issued to you once DSS has completed their assessment of the Incentive Claims and issued the RTO for your property to Aspire.
Yes. There is a process for which your property may be able to be taken out of NRAS, the process includes providing Aspire notice in line with the requirements of the Residential Tenancies Act and payment of the $750 termination fee and such other fees as provided in the NEJV Agreement.
Yes, as per any regular rental property.
You will still be eligible to receive the full NRAS incentive if the period of vacancy (whilst being renovated) is less than 13 weeks within a given NRAS year.
You can apply for a PAYG Withholding Tax Variation through your tax consultant which may enable you to receive the payment attached to your wage instead of yearly. Aspire does not offer financial or taxation advice and recommends you seek independent advice regarding your personal situation.
Part of the Qld Government’s requirement is that all NRAS tenants must be sourced from the Department of Communities’ Housing Register. Aspire will ensure that all potential tenants are included in this list prior to a Tenancy Agreement is signed.
All other states and territories are exempt from this requirement.
Tenants may be from all walks of life. They are likely to be moderate income earners (for example, key workers of the communities such as Apprentices, junior nurses, retail and hospitality workers). Potential tenants will still need to qualify that they can afford the rent the same as with any regular tenancy agreement.
According to the FaHCSIA NRAS Prospectus (2008), up to 1.5 Million families will be eligible for the scheme.
Yes, for our mutual protection some specific insurance is required such as Landlord Insurance and Public Liability Insurance. Please feel free to contact us at Aspire for more information if required.
Rents will increase on an annual basis and be built into the lease agreements with the tenants. The formula for calculating rent will be determined based on the number of years it has been in NRAS:
a) Years 1,4,7 - the rent will be determined by an independent valuation provided this is not in excess of the NRAS Market Index
b) Years 2,3,5,6,8,9 the NRAS Market Index is used to determine the rental rate - which is previous year’s rental component of the CPI index figures for the capital city of the dwelling’s state, provided this is not in excess of 80% of the market rate rent.
Rental disbursements will occur at least twice per month, ensuring that you will receive your rent monies no later than 14 days following receipt from the tenant.
Your property will revert back to a market rental property and will no longer be part of NRAS. Unless the Government offer to continue with the Scheme for which you may or may not have the opportunity to partake in.
NRAS is in place by virtue of Federal legislation. For the government to cancel funding for NRAS, it would have to repeal or amend this legislation. While this is a risk, Aspire is not aware of the legislation being amended or repealed currently.
To remain compliant with NRAS, a rental valuation must be conducted once the property is complete. The rental price cannot be set until this valuation report has been received and even if we have a tenant pre-approved for your property, it usually takes 3 weeks from receipt of the rental valuation to tenancy. Therefore, whilst we endeavour to have a tenant move in as close as possible to handover, you should not expect to have a tenant in place in the first 2 weeks after handover.