Whenever we discuss affordable housing, a common question people ask is: “What is NRAS?” It’s no news that rent prices keep soaring at an alarming rate. In recent years, renters have had to deal with the most significant rent hike in over a decade. As such, many now have to break the bank just so they can get a decent home. However, if you are a low-income earner in search of affordable rental housing, you’re on the right page.
The National Rental Affordability Scheme (NRAS) is a large-scale investment solution to the ever-increasing rental costs in Australia by the Australian government. The goal of this programme is to make available and increase the number of, and accessibility to affordable housing in Australia. This is why the National Rental Affordability Scheme is so popular.
Here, we will discuss pertinent information about the government initiative, NRAS.
Overview and core objectives of NRAS
First of all, NRAS means National Rental Affordability Scheme. Taking a cue from the name, you probably already know what this body exists to achieve.
However, bear in mind that NRAS does not offer social housing or bond assistance. Speaking of bond assistance, here’s all you need to know about bond assistance in Victoria.
Now, what is NRAS? Straightaway, NRAS is the government’s effort to provide a balance between the high cost of rent and the financial realities in Australia. Since 2008, NRAS has indeed been a succour to the helpless. Also, it is the government’s way of supporting real estate investors, private developers, and community organisations to provide new affordable rental housing.
Speaking of affordable housing, how affordable are NRAS’ housing options? We will discuss how NRAS properties compare to rental prices in the popular market subsequently.
Eligibility requirements
Like any other programme, there are minimum requirements to meet to become a beneficiary. As mentioned earlier, the NRAS programme is targeted at low- to moderate-income households. Needless to say, the income of all the prospective tenants of a property determines their eligibility. Also, there are slight differences in requirements across the states and territories. So, doing more specific research is key. However, below are the general requirements;
- You must be an Australian citizen, or resident, or have a student or work visa
- You must be an eligible adult
- The Initial Income Limit for one adult is $58,905 or a combined $81,441 for a couple (or two adults)
- Your income does not exceed 25% of the Initial Income Limit throughout your stay on the property
N.B. The income limit increases with each additional household member (including children). Check out more info about the household income index here.
How to apply
Before you apply for any property, you need to ask yourself, “How much rent can I afford? Your response to this question will help guide your search for an ideal home. Once you find an NRAS property that suits your needs, waste no further time. Keeping the requirements in mind, put together your identification (digital identity, concession card, etc.), income proof, and all other necessary documentation. Once again, bear in mind that requirements may differ by state. So, you probably should consult the relevant property managers or your local social services department for up-to-date info.
Before applying, however, ensure you inspect the properties through the relevant property managers. Do a thorough evaluation and be sure it suits you. If it does, request an NRAS property form or simply head to the NRAS portal to apply. Submit your application, await a response, sign the presented contract, and move in. Most importantly, ensure you go over the contract terms thoroughly before signing.
What is NRAS: People also ask
How much can I save on rental costs through NRAS?
NRAS aims to reduce rental costs and increase the number of affordable housing units in Australia. Therefore, with the provided financial incentives, beneficiaries can enjoy about a 20% reduction in current market price trends. With this, the less financially buoyant can access decent accommodations without having to break the bank. While we can’t give an exact figure on the expected savings, you can expect to save significantly. However, this depends on your location, local laws, and the rental market.
Can I choose any NRAS property?
Absolutely! People have the right to select their preferred property so long as they meet the eligibility requirements and apply correctly. NRAS properties come in varying prices, sizes, and types, catering to diverse needs and applicant preferences. So, you should ensure you follow the appropriate guidelines and research and inspect properties where necessary. These are crucial to finding one that suits your budget and lifestyle.
What happens if my income changes while living in an NRAS property?
When your income surpasses the eligibility threshold, you may no longer enjoy the benefits of NRAS legally. If this happens, you are required to discuss the new development with the property manager to discuss your options. Do this before the renewal of your contract, or you may face penalties. Depending on the situation, you may need to vacate your current NRAS home and move on to bigger things. In any case, you’d be granted a grace period to find new accommodation and settle in.
Can I apply for multiple NRAS properties?
Yes, you may apply for multiple NRAS dwellings. Given the large number of applications received at any given time, applying for multiple properties increases your chances of getting the perfect one for your needs. Bear in mind that the demand for affordable housing is high, so it’s usually quite competitive. Therefore, you need to keep track of your applications and respond promptly to property managers who reach out to you.
