General Information

  • IRR%: 3.17
  • CoC%: 2.41
  • Minimum: 123 AUD
  • Type: -
  • Asset: -
  • Investors: 1.21k
  • Start Date: 2015-05-05
  • End Date: -
  • Target: 1.23m AUD
  • Completed: 63%

Additional Information

  • 4/6 Miller St
  • 3181
  • VIC
  • Australia

* 2 bedroom, 1 bathroom, 2 car spaces, townhouse that has been architecturally renovated to a high standard * Outdoor deck and generous multi-purpose garage suitable for 2 cars * Blue chip suburb with high rental demand due to its location and popularity amongst young professionals * Close to popular shopping, restaurant and café destination of Chapel Street, and close proximity to St Kilda Beach * Excellent transport links to Melbourne CBD **The Property** Architecturally renovated to a high standard, this property boasts many desirable features. A combination of northern light, crafted granite island bench, solid Victorian Ash open staircase, open plan kitchen and living area that spills out to a generous, private, sun-drenched deck, should make this property popular amongst renters. Accommodation includes two well-proportioned bedrooms complete with custom built-in wardrobes and a central bathroom. Further features include modern appliances, ducted cooling, Royal Oak timber flooring, car accommodation for up to two vehicles (this space is extremely flexible and could suit a home gym or office) and a generous European laundry with drying racks. **Location** Prahran is an extremely vibrant area, catering for a young and dynamic lifestyle. It is 5km south east of Melbourne’s CBD, in close proximity to St Kilda Beach, and thrives with some of Melbourne’s best restaurants, cafes and bars running along and off popular Chapel Street. In addition, the desirable location offers excellent transport links and options for accessing Melbourne CBD. Due to the suburb’s location, cultural characteristics and popularity with younger age groups, it is a highly desirable location for renters. According to the most recent census, the predominant age group in Prahran is 20-44 years, accounting for over 57% of the residents. In addition, over 57% of the residents work as either managers or in a professional occupation. The suburb is particularly popular with both unmarried individuals and families, with a household composition of 46.2% family households and 40.9% single person households. **Investment Case** Exchange of the Prahran property occurred during April 2015. The property was acquired for $1.15m. Acquisition costs (including stamp duty, legal fees and buyers agents fees) were $75,905, and will be subjected to linear amortization over 5 years (see Capital Returns Tab for a breakdown of Acquisition Costs). In addition, a cash reserve of $4,095 was raised for the investment, giving a total asset value of $1.23m and a launch Brick price of $123.00. An independent valuation conducted on 14 June 2016, valued the property at $1.15m. As at April 2015, when the property exchange occurred, the property was tenanted at $750pw, providing an expected gross yield of 3.20% and net yield (paid monthly) of 2.68% following expenses. As at April 2015, Prahran had a historical capital growth rate of 6.10% per annum, based on the last 5 years. Assuming the continuation of this level of growth, BRICKX’s estimated return on investment (ROI) is 8.78%. This estimation was based on facts as at April 2015, and any subsequent changes to growth rates or levels of rental income would have an effect on estimated ROI. In addition, 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 this is covered by a contingency fund that provides over 3 months of cover. 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 beyond the 3 months of operating expenses that the contingency fund will cover. **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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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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