Unit 2/101 Tanami Drive Broome 6725 WA
Nov 2014 Apartment With 2024 Nras Incentive Tenanted
The 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.
The investment case for Broome
We believe that there is a strong investment case for this property in the Broome suburb of Bilingurr.
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
Investing in 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 p.a or $2,516
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
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Real Estate For Sale in Broome, WA 6725 priced between $260,000 and $480,000