43/219 Foreshore Drive Geraldton WA 6530
Serviced Apartment Geraldton Wa - Invest From $2,000 Receive 7% P.a - 5 Years43/219 Foreshore Drive, Geraldton
This is underpinned by three main factors:
• Geraldton continues to enjoy growth in housing prices over the past 10-years (5.21% Sept 2016)
• Geraldton is a desirable location to live and transact business for short-term and long-term guests -- with a vast range of facilities within minutes to the CBD. This supports strong demand for rental accommodation in the area - supporting both unit and rental values
• Geraldton is the powerhouse of the Mid-West and is in the midst of massive economic expansion
Investors can expect to receive an estimated 1,851 shares for every $2,000 invested.
This tenanted property is due to be fully funded, purchased and settled by December 30th 2016.
Our investment comprises a two-bedroom apartment in North Shore Apartments Batavia Marina.
The apartment is 3 years old and fully managed by the largest Australian based hotel and resort marketer and operator - Mantra Group under an existing 5-year lease.
A new 5-year lease will be entered into, followed by 2 x 5-year options. We have not set aside any contingency for any minor issues that are identified after purchase as Mantra pays all expenses during the lease period.
We have adopted the fixed annual rent amount of $51,730. The apartment is income-generating at settlement under existing lease agreements. The Mantra Group have committed to a further 5-year lease term with options till 2028.
At the fixed level of rent, Gross Rental Yield is 7% and the forecast Dividend Yield 7% (fully accounting for purchase costs).
For prudence, we have not included any growth in rental values due to the fixed lease terms. Any subsequent increase in rent will be incremental.
Investing in Real Estate
The City of Greater Geraldton is the capital of the fastest growing region in WA-the Mid-West. With a pipeline of more than $22 billion in development projects including $6 billion in mining, the population is expected to double from 40,000 to 80,000 by the year 2020.
The median house price is above $400,000 and the Mid-West Chamber of Commerce and Industry has broken through the 700-member milestone.
The city is recognised by IBM as one of the world's emerging "Smarter Cities" and is the centre for the Australian Square Kilometre Array, the pathfinder project for Geraldton's participation in the $2 billion Square Kilometre Array, shared with New Zealand and South Africa.
Progressing its 2029 and Beyond future vision, Geraldton's changes include rapid development of the CBD to turn and face the ocean and the vibrant new foreshore, along with upgraded traffic, parking and retail centres.
An attractive place to live
Geraldton has a very diverse industry base and is also a popular tourist destination. Industries range from mining to a world leading rock lobster (crayfish) fishery and also include agriculture, fishing, manufacturing, construction and tourism. The area is rich in exportable resources and is currently mined for gold, iron ore, natural gas, crude oil, nickel, cobalt, zinc, copper and lead. The Australian Bureau of Statistics has estimated that there could be another 75,000 jobs by 2015.
Geraldton is currently in the midst of a massive economic expansion and has significant capacity for further growth. Land availability is good, housing prices are still affordable and existing infrastructure is well-established. The vision is for Geraldton to be a city that is built around a rich fabric of diversity, attractive to people from all walks of life.
As the gateway to the beautiful Abrolhos Islands, Geraldton is a leisurely 4hr drive from Perth, with plenty to see along the way. There is an abundance of ocean side accommodation available and it is a popular destination for Caravanners. World renowned for water sports, Geraldton lends itself to some of the most spectacular kite surfing, windsurfing, fishing and diving conditions.
Purchase Price: $739,000
Provision for Settlement Expenses, Stamp Duty and Rental Reserve: $59,120*
(8% of property purchase price)
Total Amount to be crowd funded: $798,120
* Unused funds will be credited back to investors in cash immediately after settlement
Resident population 40,257. Average annual population growth (5-yrs) 1.8% (WA avg 3.3). Number of households 13,053. Median house price $345,750 (compared to Perth $505,000). Number of people in labour force 17,096. Average weekly income $978.00 (compared to Perth $1001).
Industry of employment
Retail trade 12.3% - Construction 11.4% - Health Care & social assistance 11.0% - Education & training 8.9% - Transport, Postal & warehousing 7.2% - Public admin 6.8% - Accommodation & food 6.2% - Mining 5.1% - Manufacturing 5.1% - Agriculture, Fisheries & Forestry 3.2%.
Proportion of residents
0 years to 14 years 22.0% - 15 years to 24 years 14.2% - 25 years to 34 years 12.2% - 35 years to 44 years 14.3% - 45 years to 54 years 14.1% - 55 years to 64 years 11.3% - 65 years to 74 years 6.7% - 75 years to 84 years 3.9% - 85 years and over 1.3% - Average median age 36.2yrs (WA avg 36.3).
Video Presentation by the Principal https://vimeo.com/182281732
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