Empower Housing Group is pleased to invite you or your SMSF to participate in a residential dual occupancy investment opportunity located in the Bunbury suburb of Glen Iris, Western Australia.
This investment has an expected annual gross return of 8.49%. It includes 8+ years of Government incentives currently valued at $233,282 and managed by Questus Ltd.
Close to schools and only 4.4kms to the City of Bunbury’s town centre. The property is located on Lot 7 of 106 Jeffrey Road, Glen Iris.
We are providing an opportunity for a select group of investors to participate in this property investment.
The lot is currently the subject of a conditional Subdivision Approval from the Western Australian Planning Commission.
It is expected that the title on this property will be available October/November 2016. Construction by builder to commence December 2016 and be finalised June/July 2017.
Location
The Dual Occupancy property is located in Glen Iris approximately 1 hour and 40 minutes from the Perth CBD in the city of Bunbury, and is just a 4 minute drive to the Kwinana Freeway (the link in to the greater Perth region).
The City Centre and shopping such as the Bunbury Centre Point is under 7kms away. It is situated under 3kms away from the local farmers market, Bunbury Forum and Grace Christian School.
The town of Glen Iris offers an already established community with schools, shops, medical facilities and other essential services. http://www.bunbury.wa.gov.au/pdf/Business%20and%20Investors/Suburb%20profile_Glen%20Iris_final_merged.pdf
The Lot
The lot is known as Lot 7 on 106 Jeffrey Road, Glen Iris and more formally described as Lot 500 Jeffrey Road. The lot is a 571m2 undeveloped block which is zoned “Residential” under the City of Bunbury.
The Property
This lot has been allocated a 4-bedroom (3-br + 1-br) dual occupancy to-be-constructed home with 2 bathrooms and a double garage suitable for 2 sets of NRAS approved tenancies. The builder is currently being determined. The property will be purchased as a house and land package. DomaCom will provide the nominated builder progressive payments during the construction period.
Incentives
The Developer has received approval from Questus Ltd and allocated 2 x Gov’t NRAS allocations to this lot. The value of each incentive is $11,048 per year + CPI. The developer is aiming for this property to be tenant-ready by July 2017. This property can expect to receive NRAS incentives for more than 8 years. For more on NRAS, visit https://www.dss.gov.au/our-responsibilities/housing-support/programmes-services/national-rental-affordability-scheme
Offer
Investors require a minimum investment of $2,500 with the preferred minimum amount being $20,000. Investors will own units in a sub-fund and receive returns based on their units in the sub-fund that owns this property.
DomaCom will assist Empower Housing Group in raising $520,000 (purchase price, stamp duty and buying expenses) from investors utilising the DomaCom.com.au CrowdFUM platform.
DomaCom has appointed Perpetual Trust Services Ltd to be the Responsible Entity and Perpetual Corporate Trust Ltd as the Custodian for the Fund. Perpetual holds the title for each property.
Investors use the Book Build process
In order to invest in a Sub-Fund an investor must first deposit the amount of their investment in an interest bearing Cash Pool. All funds are quarantined until the book build process is complete and the property is then acquired.
Rental Incomes (based on June 2016 rental valuations)
$530 per week (3-br $320 per week + 1-br $210 per week) less 20% NRAS Discount = $424 per week + Incentive value ($11,048 + $11,048 = $22,096 / 52 weeks = $424.92) $425 per week = $849 per week
Expected Gross Annual Returns & Expenses
Annual expenses expected to be $12,224
Annual rental income including incentives expected to be $44,148
Annual surplus income after expenses expected to be $31,924
Gross Rental Yield 8.49%
Net Rental Yield 6.13%
Contact Robert Kirk of Empower Housing Group WA on 0403 577 353 or rkirk@empowerhousing.com.au for an investor pack.
The Director of Empower Housing Group WA is a licensed Real Estate Principal, a licensed Credit Advisor and a licensed Financial Advisor.