Western Australian NRAS Property Investments Benefiting from Economic Boom

Property investment services company Onyx announces release of NRAS investment units in Western Australian suburb Gosnells. End Quote

(1888PressRelease) December 09, 2010 - New National Rental Affordability Scheme (NRAS) investment properties are now available in Western Australia, property investment services company Onyx announced today. Investors interested in the NRAS program currently have the opportunity to invest in units in Gosnells, a suburb in southwest Perth.

Located 17km from the centre of Perth, Gosnells is an ideal NRAS investment location. Well serviced by public transport and the Albany Highway, Gosnells also offers the lifestyle benefits of several nearby national parks. NRAS is a government initiative that encourages investment in affordable housing by providing tax offsets to investors who let their properties at below market rates.

'We've seen a lot of interest from investors in the potential of NRAS property investment in Perth and Western Australia,' Onyx Managing Director Paul Thewlis said today. 'We're pleased to announce that we are now able to offer investors access to NRAS investment properties in southwest Perth.' Gosnells, where the investment units are located, is a growing residential area with a population of 100,000 people. Residents enjoy a pleasant blend of urban and rural lifestyles and the area boasts beautiful walking tracks, parks and picnic areas.

'Investing in NRAS properties in Western Australia makes a lot of sense,' said Mr Thewlis. 'The population is booming right now, and the state is also facing a looming skills shortage. With high employment and salaries, that's likely to drive a lot of immigration to the state, placing further demand on the rental market.'

According to the Real Estate Institute of WA, the vacancy rates in the state have stood at 4.5% for the past two years. This figure is expected to decrease as the mining industry accelerates investment encouraging growth and inter-state migration.

'Furthermore, it's really a buyer's market in Western Australia right now,' continued Mr Thewlis. Values have dropped considerably over the past few years, but the underlying fundamentals in the market are solid, with strong growth predicted for the next few years. It's a great time to get into the property market in Perth.'

Your Investment Property magazine reported in October that values for many Western Australian properties have decreased by 10-20% from the market peak in October 2007. But with the state government predicting that growth will expand from 3.75% in 2009/10 to 4.5% in 2010/11, the slump is unlikely to last long. In fact, units and apartments may be early frontrunners of this trend. The median unit value increased 10.6% in the last 12 months.

'As I said earlier, we've had a lot of interest in NRAS in Western Australia,' said Mr Thewlis. 'Combine that with how the WA market is looking right now, and I'd advise anyone interested in these investment properties to contact us soon to avoid missing out.'

NRAS is a combined federal and state government initiative to address the housing affordability crisis facing ordinary Australians. The Australian government aims to increase the existing stock of affordable housing in Australia by 50,000. The innovative scheme works to encourage private investors to purchase new residential properties, which are rented out to eligible households at 20% below market rates. The state and federal governments then provide incentives in the form of tax offsets to the investor. NRAS has been embraced by property investors as the generous incentives (currently over $9,000 per annum) in many cases allow a property investment to become cash flow positive from day one.

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