16 Mccrae Street Maddingley 3340 VIC
Balanced Tenanted Investment Broome Wa & Maddingley Vic
The investment comprises a property located in Broome (80% income + 20% growth) and a property located in Maddingley (45% income + 55% growth). Suitable for investors seeking a balanced investment.
• The Broome location generates consistent well-above-average rental income with average annual property value increases
• The Maddingley location continues to increase in annual property value with average rental income
Together, the total annual gross income return investors can expect are as follows:
Gross annual return $562 pw x 52 wks = $29,224
Gross annual return as a percentage 7.89%
Gross annual return $350 pw x 52 wks = $18,200
Gross annual return as a percentage 4.33%
Total annual rental income before expenses $47,424
Total property value when combined $790,000
Total annual return percentage before expenses deducted 6%
Together, the total annual growth rate (increase in property values) investors can expect are as follows:
Annual growth rate based on past 10 years 2.2% (Source CoreLogic)
Annual growth rate based on past 10 years 4.62% (Source CoreLogic)
Total annual increase in property values (based on past 10 years) 6.82%
Total property value when combined $790,000 at purchase date
Total property value when combined $843,878 ($53,878 increase) after year 1
Broome's annual gross income rate 7.89% with annual growth rate 2.2%
The Broome investment is a November 2014 built tenanted Ground level apartment in North Broome's newest estate of Bilingurr. It has 2 bedrooms, 1 bathroom, alfresco, kitchen/meals, laundry, courtyard and carport for 1 vehicle.
Surrounding properties are utilised predominantly for residential purposes. The commercial centre of North Broome is about 1 kilometre away. A well-established residential neighbourhood, comprising predominantly newer style houses and apartments with an overall similar appeal.
Good proximity to local shops, service station and the recently opened Bilingurr Primary School.
Broome has a population of 16,300 people and is located in the north west of Western Australia.
It's a 2-and-a-half-hour flight from Perth. This property is located several minutes' drive to the world famous Cable Beach.
The property includes 1 x Questus 10-year tax-free Government incentive provided by the National Rental Affordability Scheme (NRAS) with an annual value of $11,045 (2016-7 value). There are approximately 8 years of incentive remaining with an end date of November 2024. The incentive has a current weekly value of $212 and is non-assessable income.
White goods, TV and furniture/bedding to the value of $6,000 is included.
Maddingley's annual gross income rate 4.33% with annual growth rate 4.62%
This Bacchus Marsh location of Maddingley Victoria property is a 2012 built semi-detached two-storey contemporary townhouse of brick (rendered) and timber construction on a site area of approximately 237 sqm. It has 4 Bedrooms, 2 Bathrooms, Lounge, Kitchen/meals, Parents retreat, Powder room, Laundry, Courtyard and Garage under main roof line for 1 vehicle.
It's located on the east side of McCrae Street within Maddingley, the southern urban area of the Bacchus Marsh township. Surrounding properties are utilised predominantly for residential purposes. The commercial centre of Bacchus Marsh is about 1 kilometre to the north. A well-established residential neighbourhood, comprising predominantly older period style houses of an overall similar appeal.
Good proximity to local shops, Werribee River and Bacchus Marsh Grammar School.
Bacchus Marsh is one of Victoria's older towns and, as such, it retains a number of historically significant buildings. Located on the edge of a scenic and fertile valley, it is surrounded by hills and situated by the Werribee and Lerderderg Rivers at an elevation of 105 metres. Bacchus Marsh is 55 km north-west of Melbourne en route to Ballarat via the Western Freeway.
The town supports a range of manufacturing industries while the surrounding area is given over to dairying, mixed farming, grazing and orchards. There is an open-cut coal mine on the southern outskirts. Bacchus Marsh is also a commuter satellite of Melbourne and has a current population of some 13,500 people.
The investment case for Broome
We believe there's a strong investment case for this property in the Broome suburb of
This is underpinned by three main factors:
• Broome continues to have annual growth in housing price values over the past 10-years of 2.2% (as at Sept 2016)
• Broome has one of Australia's lowest vacancy rates of 1.4% (as at Sept 2016)
• The latest figures from Tourism Research Australia show more than 1.2 million domestic tourists came to Australia's North West and spent $1.422 billion in the last 12 months
The investment case for Maddingley
We believe there'is a strong investment case for this property in the Victorian suburb of Maddingley.
This is underpinned by three main factors:
• Maddingley continues to enjoy growth in housing prices over the past 10-years of 4.70% (as at Sept 2016)
• Maddingley has one of Australia's lowest vacancy rates of 0.9% (as at Sept 2016)
• Maddingley is a suburb of Bacchus Marsh and is on the growth corridor from Melbourne. Melbourne's western region is one of the fastest growing in Australia. The area covered by the West Growth Corridor Plan will eventually accommodate a population of 377,000 or more people and have the capacity to accommodate at least 164,000 jobs. https://vpa.vic.gov.au/wp-content/uploads/2012/11/GCP-Chapter-4-West-Corridor-Plan.pdf
Investing in Broome Real Estate
Situated in the north west of Australia, Broome is a major tourist destination with a population that increases to 45,000 during the tourist season. It has the 22.5 km long Cable Beach and enjoys 2 seasons; a dry season and a wet season. Almost every day is clear with max temperatures around 30 deg.
Broome has excellent road and air links to both centres and good air links to other major Australian cities. Telecommunications infrastructure is expanded by the role out of the National Broadband Network allowing Broome to take advantage of the substantial global economic changes that are currently sweeping the world.
• An international airport with domestic services to most Australian capital cities, regional destinations and a heliport that services growing offshore oil and gas platforms
• A deep water port with readily available capacity, refuelling and bunkering services enabling use by container, livestock and large cruise ship passenger capacities
• More than 250km of sealed, all weather roads
• Nine primary and secondary schools and post-compulsory education available at Kimberley Training Institute's largest campus
• significant offshore, and potential onshore, oil and gas fields
• over 23,000 ha of dry land agriculture and identified aquifers
• 1,400 businesses in a wide range of sectors
• over 70,000sqm of commercial floorspace
• 16 hotels/motels/services apartments, 1,290 rooms, and 3,400 bed spaces
• an active pearling and aquaculture industry
• a rapidly developing logistics industry
In total, the economy (2013) of the Shire was estimated to be worth over $1 billion in GRP. While the economy is diverse, it has an emphasis on regional servicing, such as construction and retail. The largest sector in terms of GRP is construction (14.6% of the economy), followed by transport, postal and warehousing (11.7%).
While tourism and retail activity represent 12.7% of GRP, they account for approximately 21% of jobs in the Shire. As the largest population centre in the Kimberley region, Broome provides many of the support and administrative services required by other towns such as Derby, Wyndham and various smaller communities.
Broome supports investment and new industries. The current infrastructure and assets provide an excellent foundation for incoming investors to develop and benefit from new economic opportunities within the region.
Based on the last 10 years of available information, investors can expect this property to continue showing annual growth together with consistently high rental income with a low vacancy rate.
Annual water rates $900
Annual council rates $1,600
Annual strata fees $2,500
NRAS rent per week $350 (Market Rent per week $440)
NRAS value per week $212
Total rent including NRAS value $562
Questus NRAS annual fee at 5.5% of annual incentive value $607
First National property management fee 11% incl of GST or $2,516 p.a
Gross annual return $562 pw x 52 wks = $29,224 / $370,000 x 100 = 7.89%
An attractive place to invest
Within Australia, Broome sits between the expanding cities of Perth and Darwin. Perth is approximately 2,200 kms to the south, with Darwin approximately 1,800 kms to the north. Broome has excellent road and air links to both centres and good air links to other major Australian cities. Telecommunications infrastructure is expanded by the role out of the National Broadband Network allowing Broome to take advantage of the substantial global economic changes that are currently sweeping the world.
Over the next 20 years Broome's population is expected to continue growing. If Broome was to experience periods of significant economic growth, the population is projected to reach between 27,000 and 43,000 by 2036.
Broome is ideally placed to be the key service and supply point for the oil and gas industry operating in the Browse Basin. In recent years there has been a significant increase in exploration and extraction in the Browse Basin and this will continue as some of the major fields are further developed. On-shore the majority of Western Australia's shale and tight gas resources are located in the Canning Basin near Broome, making this town an obvious access point for future developments. In addition to the energy sector, there are also a number of minerals projects that can be developed in the region including mineral sands and rare earths.
• The Ord/East Kimberley expansion project (est. value $517m)
• The Water for Food $40m Royalties for Regions program including the The La Grange project (due to be completed in 2016) and the $15m Northern Beef Futures program
• The proposed Chinatown Revitalisation Project (est value $12m)
• $20 million Yeeda Abattoir expected to process 55,000 head of cattle per year
• The Buru Canning Basin Tight Gas project
• The Browse multi-user energy precinct (a total of 2,500ha)
• The Browse Basin floating platform project and ongoing exploration
• The Broome Road industrial area development (est. value $51m)
Opportunities for Broome include:
• consolidating the town's role as a transport hub that has a particular focus on supplying and servicing the developing oil and gas industry
• high availability of industrial and residential land to support industry development and population growth
• building on the town's function as a regional health provider
• capturing a greater share of the Asian tourism market through improved and more relevant tourism products, especially cultural, culinary and nature based tourism
• realising the full agricultural, horticultural and aqua cultural potential of the region to contribute to exports of food products to meet growing demand in Asia.
• increasing development of natural gas and energy resources to satisfy growing Asian demand
• continuing growth in the size of the Asian middle-class and their interest in new foods, tourism and consumer goods
• growing international food markets making arable land and water increasingly valuable
• new transport and communication technologies that are linking Broome more closely and quickly to nearby markets and population centres
• ageing Australian and Asian populations and the emergence of semi-permanent lifestyle seekers interested in travel and experiences
• resurgent tourism markets in the UK, Europe and the US, as well as emerging new markets like China, India and South East Asia
Investing in Maddingley Real Estate
Situated halfway between Melbourne and Ballarat, Bacchus Marsh is a lovely country town with a greater population of 17,000. A high number of residents choose to commute to either Ballarat or Melbourne for work. Along the Western Freeway, this is a forty-five-minute drive. From Bacchus Marsh Station, it is a thirty-five-minute trip via a V/Line train service.
Bacchus Marsh is a rural centre and regional locality in Victoria, located approximately 65 kilometres north west of the state capital Melbourne and 15 kilometres west of Melton at a near equidistance to the major cities of Melbourne, Ballarat and Geelong.
The estimated population of Bacchus Marsh urban area was 19,934 at June 2015. The State Suburb by the same name is home to 5,760 people and contains the central business district. Bacchus Marsh is the largest rural area in the local government area of Shire of Moorabool.
Traditionally a market garden area, producing a large amount of the region's fruits and vegetables in recent decades it has transformed into the main commuter town on the Melbourne-Ballarat corridor with its affordable starter homes proving popular.
Bacchus Marsh's population is dominated by established, maturing and older families.
New homes dominate Bacchus Marsh's housing stock.
Maddingley is serviced by the Bacchus Marsh Railway Station.
Based on the last 10 years of available information, investors can expect this property to continue showing high annual growth together with steady rental income with a low vacancy rate.
Annual water rates $852
Annual council rates $1,835
Rent per week $350
Management fee 7.7% incl of GST charged by property management agency
Gross annual return $350 pw x 52 wks = $18,200 / $420,000 x 100 = 4.33%
An attractive place to live
Bacchus Marsh is an urban centre located approximately 50km north-west of Melbourne's Central Business District (CBD). Bacchus Marsh is the largest urban area in the local government area of Shire of Moorabool.
In recent decades, Bacchus Marsh has transformed into the main commuter town on the Melbourne-Ballarat corridor with its affordable starter homes proving popular.
The nature and size of the local population, both now and in the future, is a key driver of property demand. 5,760 is the total population.
Industry of employment
Top occupation is professionals. 2,406 are employed. Household income per week is $972.
Proportion of residents
Median age is 41. 1,571 families live in Bacchus Marsh.
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