Have you seen the adds on TV for TIPS and or NRAS as ways of investing into Rental Propertys ?
I have to admit that I am personally looking into it as an option because of the potential to get into the rental market with positive cash flow which will help potentailly help me clear my residential debt quicker. (Swap bad debt with good debt)
Here is some info on the scheme,
Its their blurb not mine so please dont take this as my words or advice. This is a comment from me as a member of the site and I would not avocate some of the hyping up that seems to be present in Australia around rental property. This is just one avenue I think is worth getting more info on to get a more rounded idea of what is possible.
New Exclusive programme to TIPS Rent365 is as follows
1. You must purchase a new house and land package or a home completed that hasn’t been lived in
2. Affordable Housing Management (AHM) will sign a head lease agreement with you to take over control of the rental of your home. They will pay you rent from day 1 and up to 10 years depending on the property whether the home is rented out or not
3. You will receive 100% of the market rent; have no fees to renew your lease each year, no marketing fees, no inspection fees, no review fees and no vacancy. All this will save you thousands. They will also take out landlord insurance to cover any possible damage caused by the tenant.
4. If you choose to sell the property within the 10 years there is a set exit fee of 5 weeks rent in the first year and this is reduced each year by 1. So after year 5 the exit fee is $0
5. You will be buying a property with rent paid to you every day 365 days a year for up to 10 years. The only restriction your property has is that the normal retail rent can’t be greater than $400 per week
to start off with. This is because they are trying to help with the lack of properties available for affordable housing that many people are struggling to find.
Another scheme is
NRAS - National Rental Affordability Scheme
This is very tax effective, potentially generating a positive cash flow
All info current at date of posting.