NRAS compares assets versus liabilities
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Assets versus Liabilities

Many people say "their house is the greatest asset they own and also their largest investment". But is it?
In most people's cases they'd suggest their car is the second greatest asset they own (and they are really proud of it). But are these things really best defined as assets?
Unfortunately the reality is that in most cases they aren't . They are in fact liabilities.
The reason is that they actually absorb the owner's money like a sponge. For example a car has many extra costs petrol, taxes, repairs and so on. Similarly a house needs plenty of money for electricty, water, rates, energy, repairs to say nothing of the price you have to pay to buy it....
So if and when you want to become wealthy, it's extremely important to focus clearly on knowing the true difference between an asset and a liability.

Asset = Money into your pocket

An asset puts money into your pocket. An asset should generate income on a regular and reliable basis.
Some might define an asset as 'anything that you own that is worth something' - Something that could be 'turned into money' if you needed. Looking around your room, I'm sure there will be plenty that might be worth something. In fact you probably have more than you think. But should you really classify them as assets in the truest sense?
Your assets also technically include the balance in any bank accounts in your name, or the current value stocks bonds that you have your wallet.
But here's the catch:
While might consider everything of value in your room an 'asset' (because you could sell it for decent money on eBay), it's actually not really an asset until it is sold.
Because it's not putting any money into your pocket until it's sold... And then it's not longer an asset, because it not longer belongs to you!
The same thing actually goes for cash in your wallet, your cash is not secretly reproducing itself by putting more money into your pocket. But there are places other than your wallet where cash 'reproduces itself'
When it's invested in assets that give you a passive portfolio income. NRAS property provides passive income and increases in value
Anything you own that produced passive portfolio income is an asset.

Liabilities = Money out of your pocket

Liabilities are the opposite of assets.
Liabilities take money out of your pocket. In fact, a lot of things mentioned above- the TV or computer in your room that that might traditionally be considered 'assets' - are actually liabilities right now, because it took money out of your pocket just to get them. And many of them, when converted to cash, would give you back less money than you would pay for them.
So whilst you might be forgiven for seeing your own home if you own it, as an asset, the fact is it costs you money every day. It doesn't actually generate any income. It only generates income from the increased value when you sell it. Obviously that's only if the value of your house grows more than you paid for it.

"Property you own that produces passive income, is an asset. That is why NRAS properties should be in your portfolio."

They generate profitable annual income and benefit the capital gain as property increases in value.

Find out more about NRAS compared with DHA (Defense Housing Australia)
Compare NRAS with Non NRAS property returns
Find out more about the NRAS Australia iPhone App
See NRAS FAQ for more - Frequently asked Questions

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Assets versus liabilities. Investment properties are income generating assets. NRAS properties provide investors $10,000 incentive in addition to the national rental affordability scheme tax benefits. NRAS is a social impact investment opportunity for real property investors across real estate in New South Wales (NSW), Queensland (QLD), Western Australia (WA) and South Australia (SA). You can find specifics about individual nras development projects such as nras new south wales,nras qld,nras queensland,nras wa,nras western australia,nras sa,nras south australia, within the propert listings on the NRAS Australia site.