General Information

  • IRR%: 19.24
  • CoC%: 1
  • Minimum: 0 AUD
  • Type: -
  • Asset: -
  • Investors: 593
  • Start Date: 2017-07-20
  • End Date: -
  • Target: 0 AUD
  • Completed: 100%

Additional Information

  • 24 Clayton Street
  • 2041
  • NSW
  • Australia

* 3 bedroom, 1 bathroom freestanding cottage in Balmain * Architect-designed and renovated throughout on Clayton Street * Features hardwood floors, vaulted ceilings and skylights * Easy access to popular Darling Street and CBD via ferry or bus * Well-established suburb with long-term compound growth of 8.6% per year since 1999 (source: APM) * Property investment was purchased with 28% gearing **Property** This three bedroom, one bathroom renovated freestanding cottage has a landscaped, private north-facing rear courtyard. All bedrooms have built-ins while the master bedroom has French doors opening out to a north-facing balcony. The kitchen boasts marble benches and ILVE/De Dietrich appliances. The mezzanine study features skylights as does the bathroom, powder room and laundry. **Location** Balmain is well known for its excellent pubs, restaurants and proximity to the city. This property, is an easy stroll to popular Darling Street cafes and shops and is close to Mort Bay Park. The suburb offers multiple bus and ferry options with direct lines to the CBD, making it popular with professionals. The Thames Street Wharf is an easy 300 metre walk. The supermarket, bakeries and specialty stores are also easily accessible. Local residents are typically aged between 30-49 years-old. Balmain attracts professional couples with or without children (source: ABS). There are five primary schools less than a kilometre away. **Investment Case** This property was purchased prior to auction. Exchange of the Balmain property occurred on 6th June 2017. The property was acquired for $1,830,000 and will include $549,000 of debt to finance the transaction. Acquisition costs (including stamp duty, legal fees and buyer’s agents fees) are estimated to be $106,540 and will be subjected to a linear amortisation over 5 years (see Capital Returns Tab for a breakdown of Acquisition Costs). In addition, an estimated cash reserve of $12,460 is being raised for the investment giving a total Trust value of $1,949,000 and launch Brick price of $140. In the event the Acquisition Costs are above/below estimates, these costs/surpluses will be funded from/added to the Cash Reserve. A mortgage for $549,000 was used in financing the initial purchase. The mortgage is a 30 year loan, at a variable rate of 4.54%, with the first 5 years interest only, and the following 25 years principal and interest repayments. The BRICKX team will continue to monitor interest rates throughout the life of this investment and act in the best interests of Investors. At purchase, this property was not tenanted and was estimated to attract a rent of $1100 per week. A property management team has been assigned to this property. Based on estimated rental income, forecasted net yield (paid monthly) is 1.13% after expenses (including interest payments on the mortgage). As at the end of April 2017, Balmain had an historical capital growth rate of 13.04% per annum based on the last five years (source: CoreLogic). Assuming the continuation of this level of growth, as well as incorporating a 5.11% gearing effect, and current estimated net rental yield BRICKX’s estimated return on investment (ROI) is 19.28%**. Fluctuations in Brick Price will influence the effective return, and thus you should regularly refer to Returns and Valuation information on the summary page for the latest data. **Property Management** BRICKX uses a third party managing agent to manage the properties on behalf of investors. Investors will not be required to take an active part in managing a property and will not be consulted for any decisions relating to a property. The Manager will operate within the management agreement framework for all properties so that Investors are left only to manage their portfolio. The Manager proactively manages the properties to ensure that they are as much as possible consistently tenanted and kept to the highest standards to protect the Investor’s investment, both from a capital and rental income perspective. There may be periods of time where a property is vacant, and expenses during this period are covered by a contingency fund that provides over 3 months of cover (note this is for expenses only and not for the payment of any net rental income to Investors). The Manager has also put in place procedures to ensure that before a lease expires, the tenant will be asked to confirm their position with regards to the tenancy agreement. If the tenant does not sign a new lease within a certain time, the property will be advertised for lease. The rental price may be slightly reduced in order to attract a new tenant if necessary. BRICKX will always seek to achieve a balance between the forecast yield and market conditions to minimise the risk that the property is vacant for extended periods. **Forecasts may not be achieved and are not a reliable indicator of future performance. **Important Notice** The advice provided to you is general advice only. It has been prepared and presented without taking into account your personal objectives, financial situation or needs. Before making any decision in relation to BRICKX or any products offered by BRICKX you should read the Product Disclosure Statement (PDS) and consider whether BRICKX is right for you. BRICKX products are issued by Theta Asset Management Limited (ABN 37 071 807 684) (AFSL 230920) (Theta). The Brick Exchange Pty Ltd (ABN 27 600 762 749) (BRICKX) is the manager of BRICKX Platform (ARSN 613 156 433). BRICKX is an authorised representative (001000043) of BRICKX Financial Services Pty Limited (ACN 616 118 988) (BRICKX Financial Services). None of BRICKX, BRICKX Financial Services or Theta, guarantee any rate of return or the capital value or return of any money invested. Past performance referred to is no guarantee of future performance of the relevant financial product and is not a reliable indicator of future performance.

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The BRICKX team is passionate about creating easy and affordable access to the property market for all Australians. With collective backgrounds in technology, p...

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