General Information

  • IRR%: 2.67
  • CoC%: 1.7
  • Minimum: 155 AUD
  • Type: -
  • Asset: -
  • Investors: 788
  • Start Date: 2017-02-09
  • End Date: -
  • Target: 1.55m AUD
  • Completed: 45%

Additional Information

  • 322 Esplanade East
  • 3207
  • VIC
  • Australia

* Single level fully renovated freestanding Victorian residence in one of the most desirable streets in Port Melbourne * 2 good sized bedrooms located at the front of the home, 2 bathrooms, providing one bedroom with an en-suite * Generous sized dining and living areas leading onto a fully decked courtyard * Excellent transport links to Melbourne CBD and close proximity to local shops, cafes and beaches * Well established suburb with an historic track record of long term consistent returns **The Property** In possibly Port Melbourne's prettiest street, this picturesque freestanding single level Victorian residence is both charming and full of character. A Baltic pine hallway leads to a double bedroom with open fireplace and built in robes. The large master bedroom with built in robe and designer en-suite is a rarity for this type of home. A stylish main bathroom with Euro-laundry is located at the rear of the home. The gourmet kitchen with European appliances and stone benchtops is ideally situated between the generous sized dining and living areas, giving this home a sense of space usability normally reserved for much larger properties. The fully decked private courtyard is connected to the living and kitchen providing the perfect space for indoor/outdoor entertaining and also has pedestrian access to a rear lane. Appointed with central air conditioning and heating, plantation shutters, alarm and garden shed, this home will rent well to young professionals who want a low maintenance lifestyle in a premium location. **Location** Port Melbourne is a bayside suburb located only 5km from the Melbourne CBD. It provides residents with easy access to popular beaches, cafes, shops, parks and restaurants. Easy public transport to and from the CBD and great connection to freeways makes Port Melbourne one of Melbourne’s most popular and convenient locations. The suburb itself has a combination of modern architecture, restored cottages and grand old pubs renovated in typical Melbourne style. The house itself is located in Esplanade East, one of Port Melbourne’s most desirable, beautiful tree lined streets. Surrounded with some of Port Melbourne’s most expensive properties, 322 Esplanade East is only 200 metres from the trendy Bay Street shopping and restaurant precinct. A short 1.4km walk will have you at Port Melbourne’s iconic beach where you can have a drink and watch the cruise ships come and go from station pier. Only 300 metres from Gasworks park and a 400 metre walk to the light rail for direct access into the CBD make this location in demand. According to the last published Census, Port Melbourne is particularly popular with couples, accounting for over 60% of the residents. The predominant age group in Port Melbourne is 25-34 years and, in general, residents work in a professional occupation with 40% of households earning in excess of $130k per annum. Port Melbourne is popular amongst renters, accounting for 46% of households. **Investment Case** Exchange of the Port Melbourne property occurred on 26th November 2016. The property was acquired for $1.455m. Acquisition costs (including stamp duty, legal fees and buyers agents fees) are estimated to be $107,925, and will be subjected to linear amortization over 5 years (see Capital Returns Tab for a breakdown of Acquisition Costs). Within the acquisition costs is a budget of $8,000 allocated to make some minor repairs to some joists and beams in the roof of the house in addition to other minor costs. This budget is deemed to be very conservative and any surplus funds will be added to the cash reserve. In addition, an estimated cash reserve of $7,075 is being raised for the investment, giving a total trust value of $1.57m and launch Brick price of $157. In the event that the Acquisition Costs are above/below estimates, these costs/surpluses will be funded from/added to the Cash Reserve. 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 $740-760 per week, and the current yield estimates are based on the more conservative $740 per week forecast. This provides a forecasted gross yield of 2.45% and net yield (paid monthly) of 1.67% after expenses. As at end October 2016, Port Melbourne had a historical capital growth rate of 10.9% per annum, based on the last 5 years. Assuming the continuation of this level of growth, BRICKX’s estimated return on investment (ROI) is 12.52%. 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 tenanted as much as possible 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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