General Information

  • IRR%: 4.93
  • CoC%: 1.72
  • Minimum: 97 AUD
  • Type: -
  • Asset: -
  • Investors: 1.62k
  • Start Date: 2016-12-08
  • End Date: -
  • Target: 993.85k AUD
  • Completed: 100%

Additional Information

  • 2/5 Ramsgate Avenue
  • 2026
  • NSW
  • Australia

* 2 spacious double bedrooms, 1 bathroom apartment renovated to a high standard preserving original features * Character property in a small, well-maintained Art-deco block of 4, with direct access to rear garden * Highly desirable location with high walkability factor, close to iconic Bondi beach and surrounding amenities * The property is well suited to the local area and will cater to a broad tenancy base – particularly with young couples and professionals * Property was purchased with 34% gearing, giving investors opportunity for amplified returns **The Property** More like a semi in layout and feel, this 2 bedroom, 1 bathroom Art Deco apartment is set within a small, boutique security block of just four and is just a few minutes’ stroll to the sand and surf of one of Australia’s most iconic beaches. The property has seen a tasteful refurbishment blending Art Deco elegance with a contemporary edge. Wrapped in windows on three sides and with only one common wall it features a streamlined CaesarStone kitchen with integrated fridge, stainless steel induction hob, Miele dishwasher, ample storage plus a chic contemporary bathroom with deep bath. Other features include a north-east facing sunroom/study plus built-ins, high ornate ceilings, plantation shutters, separate internal laundry and dark stained timber floors. There’s also a library/study zone with glass doors to shared garden for easy outdoor entertaining/relaxing. **The Location** One of Australia’s beachside suburbs with an unparalleled combination of natural beauty, lifestyle and entertainment with buzzing cafés and restaurants, hip Campbell Parade shopping strip, weekend organic famers markets as well as the famous Bondi Icebergs pool and club. The apartment is set within a trendy but quiet locale within easy reach of all that Bondi Beach has to offer making it a highly desirable offering for any prospective tenant. Start the day with a morning swim or surf, stroll along the sandstone cliffs of the Bondi to Bronte coastal walk, wander through local markets on the weekend or enjoy a coffee from any one of a multitude of hip local cafés. The property is located within 350m of the Pacific Bondi retail precinct (Woolworths, BWS, bakery, organic wholefoods and public parking).  220m level walk to Bondi markets. 600m to Bondi Beach. There is excellent amenity with good access to Bondi Junction retail, CBD transport, eastern suburbs beaches, UNSW, Prince of Wales hospital, Sydney Children’s Hospital and Centennial Parklands. According to the last published census, Bondi Beach is particularly popular with couples, both with (24%) and without children (28%), accounting for 52% of the residents. The predominant age group in Bondi Beach is 25-34 years and, in general, residents work in a professional occupation with over 32% of households earning in excess of $130k per annum. Bondi Beach is very popular amongst renters, accounting for 60% of households. **The Investment Case** Exchange of the Bondi Beach property occurred on 13th October 2016. The property was acquired for $1.350m, and will include $490,000 of debt to finance the transaction. Acquisition costs (including stamp duty, legal fees and buyers agents fees) are estimated to be $81,440, and will be subjected to linear amortization over 5 years (see Capital Returns Tab for a breakdown of Acquisition Costs). In addition, an estimated cash reserve of $18,560 is being raised for the investment, giving a total trust value of $1.450m and launch Brick price of $96.00. In the event that the Acquisition Costs are above/below estimates, these costs/surpluses will be funded from/added to the Cash Reserve. A mortgage for $490,000 was used in financing the initial purchase. The mortgage is a 30 year loan, at a variable rate of 4.29%, with the first 5 years interest only, and the following 25 years principal and interest repayments. BRICKX team will continue to monitor interest rates throughout the life of this investment and act in the best interests of Investors. At purchase, the property was occupied by the owner. A property management team has been assigned to this property, and they will start to market for a tenant as early as possible to minimise any vacancy period after Settlement of the purchase. It is estimated that rent achieved will be in the region of $900-950 per week, and the current yield estimates are based on the more conservative $900 per week forecast. This provides a forecasted gross yield of 4.88% and net yield (paid monthly) of 1.59% after expenses (including interest payments on the mortgage). As at end September 2016, Bondi Beach had a historical capital growth rate of 8.04% per annum, based on the last 5 years. Assuming the continuation of this level of growth, as well as incorporating a 4.10% gearing effect, BRICKX’s estimated return on investment (ROI) is 13.93%. Fluctuations in Brick Price will influence the effective return, and thus you should regularly refer to Returns and Valuation info on the summary page for the latest information. **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 pro-actively manages the properties to ensure that they are consistently let and kept to the highest standards to protect the Investors 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. **Important Note** 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.

Project offered by

Brickx

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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