General Information

  • IRR%: 5.46
  • CoC%: 1.24
  • Minimum: 59 AUD
  • Type: -
  • Asset: -
  • Investors: 1.53k
  • Start Date: 2017-05-05
  • End Date: -
  • Target: 562.81k AUD
  • Completed: 100%

Additional Information

  • 12/84-90 McLachlan Ave
  • 2010
  • NSW
  • Australia

* Modern 1 bedroom strata apartment with secure undercover parking in Darlinghurst * Part of a well-presented block on McLachlan Avenue * Well-designed floorplan with a lounge room that flows onto a good size balcony * Within walking distance to the CBD with easy access to public transport * Well-established suburb with an historic track record of long-term consistent returns * Property investment was purchased with 37% gearing **Property** In one of Sydney’s most vibrant suburbs, this one bedroom apartment is set in the heart of Darlinghurst. With secure undercover parking on title, this renovated apartment features a well-designed floorplan with a lounge room which flows onto a good size balcony with an east-south-east aspect overlooking leafy Boundary Street. Part of a well-presented block, this apartment will cater to a broad tenancy base – particularly young professional singles or couples. **Location** Darlinghurst is renowned for its eclectic mix of cafes, bars and restaurants. It is walking distance to the Sydney CBD (within 2km) and also offers easy public transport options to Bondi Junction’s retail precinct as well as iconic Bondi Beach.   When it comes to inner Sydney property, this is about as central as it gets. McLachlan Avenue is not only close to Stanley and Victoria Street eateries but is just 440 metres from beautiful Rushcutters Bay Park set on the picturesque Sydney harbourfront. St Vincent’s Hospital is 600 metres away while it’s an easy 680 metre stroll to Kings Cross train station. Gyms, supermarkets and pubs are all less than a 10 minute walk making for an extremely convenient lifestyle.   The area primarily attracts those aged 20-39 years-old and is comprised of 67% childless couples and lone households.  62% of the local population are renters with the majority young professionals (source: Domain and Experian Australia) **Investment Case** This property was purchased off-market ahead of any marketing campaign being launched. Exchange of the Darlinghurst property occurred on 13th April 2017. The property was acquired for $840,000, and will include $336,000 of debt to finance the transaction. Acquisition costs (including stamp duty, legal fees and buyers agents fees) are estimated to be $56k, 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 $10k is being raised for the investment, giving a total Trust value of $906k and launch Brick price of $57.00. 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 $336,000 was used in financing the initial purchase. The mortgage is a 30 year loan, at a variable rate of 3.97%, 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, this property was already tenanted, with over 9 months remaining on the existing lease, which is currently paying $700 per week. A property management team has been assigned to this property. Based on the current rental income, forecasted net yield (paid monthly) is 2.13% after expenses (including interest payments on the mortgage). As at the end of March 2017, Darlinghurst had a historical capital growth rate of 9.22% per annum, based on the last 5 years (source: CoreLogic). Assuming the continuation of this level of growth, as well as incorporating a 5.43% gearing effect, and current estimated net rental yield BRICKX’s estimated return on investment (ROI) is 16.8%. 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 pro-actively manages the properties to ensure that they are as much as possible consistently tenanted 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 Notice** Forecasts may not be achieved and are not a reliable indicator of future performance. 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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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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