General Information

  • IRR%: 5.03
  • CoC%: 1.57
  • Minimum: 90 AUD
  • Type: -
  • Asset: -
  • Investors: 1.46k
  • Start Date: 2016-10-26
  • End Date: -
  • Target: 931.84k AUD
  • Completed: 100%

Additional Information

  • 7/22 Ocean Avenue
  • 2028
  • NSW
  • Australia

* 2 spacious double bedrooms, 1 bathroom, 1 car park as part of this unit which has been recently renovated to a high standard * Property in a small, well-maintained Art-deco block * Desirable location with high walkability factor, with Double Bay village centre and harbor front within a 400m walk * Excellent transport links to Sydney CBD within close proximity (300m) and close proximity to multiple sought after schools * Property was purchased with 32% gearing, giving investors opportunity for amplified returns **The Property** Walking distance from both harbourfront and a main transport hub, this spacious 2 bedroom apartment, with 1 bathroom and 1 carpark is situated within an elegant, well-maintained Art-deco block of 12 units. Having undergone a recent tasteful renovation, there’s a heightened sense of space and natural light throughout with high ceilings and oversize windows. The property features a thoughtfully laid out internal floorplan with open living and dining, Black Japan floors and crisp white walls, custom built-ins and joinery, high-spec gas kitchen with a 5m Caesarstone benchtop and integrated European appliances plus a stylish Carrara marble bathroom with Kaldewei bathtub and heated towel rails. Other features include security intercom, concealed internal laundry and gas heating. **Location** One of Sydney’s most elegant and desirable bayside suburbs with wide leafy streets, pavement cafés and exclusive boutiques, Double Bay offers a truly cosmopolitan lifestyle with an array of restaurants, boutiques, hidden arcades, sporting pubs and bars. The apartment is set in a sought-after locale, with high walkability factor, and enables the growing number of young professionals moving to the area to take advantage of the good CBD connectivity during the week via bus, train and ferry and to relax in the local parks, pools and on the harbor on the weekend. Ranked as one of Sydney’s top 20 most livable suburbs by Urban Living Index (2015), the unit is set within a short, 400m level walk into Double Bay’s vibrant village center and only 300m to nearby Edgecliff station. According to the last published census, Double Bay is particularly popular with couples, both with (27%) and without children (31%), accounting for 58% of the residents. The predominant age group in Double Bay is 25-34 years and, in general, residents work in a professional occupation with over 40% of households earning in excess of $130k per annum. Double Bay is popular amongst renters, accounting for 44.2% of households. **Investment Case** **April 2017 update: BRICKX has negotiated a new mortgage for this property with Macquarie Bank Limited. It is a 30 year variable rate loan at 3.97%, which is interest only for a period of 5 years, and then principal and interest for 25 years.** Exchange of the Double Bay property occurred on 8th September 2016. The property was acquired for $1.305m, and includes $445,000 of debt to finance the transaction. Acquisition costs (including stamp duty, legal fees and buyers agents fees) are estimated to be $78,965, 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 $11,035 is being raised for the investment, giving a total trust value of $1.395m and launch Brick price of $95.00. 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 $445,000 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 as interest only, and the following 25 years as principal and interest repayments. BRICKX will continue to monitor the competitiveness of the mortgage and change if necessary. 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 was estimated that rent achieved would be in the region of $850-900 per week, however, the property management team have secured a tenant on 12 month lease commencing 28th October at $1,000 per week. This provides a forecasted gross yield of 5.47% and net yield (paid monthly) of 2.15% after expenses (including interest payments on the mortgage). As at end August 2016, Double Bay had a historical capital growth rate of 8.76% per annum, based on the last 5 years (CoreLogic SA2 Suburb Median Price Data). 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 15.01%. Fluctuations in Brick Price will influence the effective return, and thus you should regularly refer to Returns and Valuation data 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 as much as possible 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 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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