Anyone done this??
1 Bedroom units in a complex of 182 $68000-$95000 Rent $167-217 federal and state subsidies, all rent pooled by managers and you are paid a quarterly dividend. Returning between 6% and 8.5%
Compton’s provides an affordable hassle-free investment with attractive returns and long term growth. Units are freehold strata-title apartments subject to a 25 year management agreement with Compton’s Australia Pty Ltd.
There are two types of units available:
Premium Unit – 45m2
Standard Unit – 35m2Compton’s Australia is partly owned by Teys McMahon Investments Ltd who have 205 million dollars of property funds under management for 1000 investors.
Compton’s Australia is chaired by Emerald Compton A.M who also chairs the National Senior’s Association, Australia’s peak body for people over 50 years of age. Everald Compton was the former chairman of the United Nation’s Taskforce.
The independent custodian of investors’ assets, including their income pooling account is Strata Representatives which is related to the Chartered Accounting firm Malone Poulsen.
THE PROPERTY
4 – 5 years old
free hold strata titledConsisting of:
one bedroom
ensuite
open plan living
covered patio
2 carports to every 4 apartments
24 hour on site trained management team for security, grounds maintenance, building & repairs maintenance
182 units built in blocks of 4, in a village-style, cul-de-sac around a central management & recreational complex.
Tenants have life-time tenancies
Large waiting list
DEMAND11% (60,000) of this area is aged 65 years. This figure will grow by 7% each year.
80% of village residents are drawn from the local area & surrounding shires.
Wider market of 28,000 pensionersRETURNS
Financial Year
1999/2000
2000/2001
2001/2002
2002/2003
Actual Cash Return/Net Return
6.83%
5.92%
6.67%
7.99%Standard/PremiumS/ingle in Premium Unit
Queensland housing subsidy $64.30/$66.33/$64.30
Commonwealth rent assistance*$46.00/$43.40/$46.00
Tenant contributes 30 %$64.41/$107.52/$85.97
Total rent per unit $174.71/$217.25/$196.27
* Registered agreement for 15 years reducing on a pro-rata basisWhat do you think?
Towlie, it looks as if we’ve been looking at EXACTLY the same thing!
The figures I’ve been quoted are virtually identical. The only difference (or maybe you just left it out) is that the income is paid quarterly – or at least that’s what I’ve been told during my enquiries.Email me at [email protected]
Maybe we can put our heads together and come up with some way to make some cash out of this.Cheers,
MarkHi folks,
A word of warning from a brokers point of view – these are not ‘normal’ properties hence not subject to the ‘normal’ lending levels. At best on the 45sqm unit you would be able to get an 80% lend from the likes of Rams, maybe 85% from Adelaide bank but under 40sqm I don’t know anyone who’ll touch it, sorry.
Another thing is that often in the fine print of the contract with the management group is that all fixtures and fittings (carpets, lights, furnishings etc) have to be fully replaced every 5-ish years – I’d find out if that was why these are on the market now at 4-5 years old before proceeding.
The returns look good so don’t give up if it’s where you want to head, just make sure you have plenty of deposit available.
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Mel
[email protected]
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