Project Summary. Cleaver Apartments. 14 Apartments 1 bed from $348,000 2 bed from $420,000

Transcription

1 Project Summary Cleaver Apartments 14 Apartments 1 bed from $348,000 2 bed from $420,000 Property Address: Project Description: 5 Cleaver Terrace, Rivervale Cleaver Apartments are situated at the top end of Rivervale in a quiet suburban location. The Swan River is a 400m metre walk from the apartments and the Burswood entertainment precinct less than 1.5km away. This small development with security intercom and secure parking consists of 8 one bedroom one bathroom, 5 two bedroom two bathroom and 1 two bedroom one bathroom apartments. Each apartment will be fitted out to a very high standard with higher than average ceilings, air conditioning to the living area, stone bench tops to the kitchen and bathroom, timber flooring in the living areas and stainless steel appliances including a dishwasher.

2 CONTRACTS Contract Type: Reservation Form: Reservation Deposit: Full Deposit Amount/Timing: Deposit Held By: Off the plan Settlement on Completion Single off-plan contract Complete a Reservation Form to hold the property $1,000 required within 3 days of completing a Reservation Form 10% of the purchase price with contract signing Aalto Property Solutions Trust Account Interest Bearing Trust Account: Available for all contracts with over 3 months until settlement occurs Deposit Bonds Acceptable: Limited and by negotiation CONSTRUCTION AND DEVELOPMENT Developer: Builder: Estimated Building Time: Cedar Property Group Danmar Homes Approx. 12 months from construction commencing. ESTIMATED OUTGOINGS Strata Levies: 1 bedroom, 1 bathroom $1,480 approx per annum 2 bedroom, 2 bathroom $1,850 approx per annum Estimated Water Rates: 1 bedroom, 1 bathroom $1,030 approx per annum 2 bedroom, 2 bathroom $1,060 approx per annum Estimated Council Rates: 1 bedroom, 1 bathroom $1,540 approx per annum 2 bedroom, 2 bathroom $1,696 approx per annum

3 Colour Scheme: Platinum Glass Colour Scheme: Endless Dusk

4 PROJECT RATIONALE As with all property investment purchases the aim is to maximise the opportunity for the property to achieve sustained capital growth and at the same time maintain an upward pressure on rents. To achieve these outcomes with reduced risk, investment property must be located in established suburbs that already contains property that has performed in this way over many years. Rivervale is one such Perth suburb consistently displaying strong annual growth. This is the starting point for Aalto Property Solutions approving 5 Cleaver Terrace, Rivervale as desirable and suitable investment property. WHY DO PEOPLE CHOOSE TO RENT OR BUY IN RIVERVALE? Located 5kms from the Perth CBD, Rivervale was established in the late 1800 s as a market garden area but began to develop as a residential area in the late 1940 s and 50 s. Due to its strategic location to the Perth CBD, Swan River, airport, employment centres, recreation and entertainment precincts and major road transport routes, Rivervale has remained a popular area for both owner occupiers and tenants. As an example a strengthening attraction of Rivervale is its location in relation to Perth Airport. Local sales agents and property managers have noted the popularity of the suburb to the fly in fly out work force that is involved in driving the dynamic Western Australian economy.

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6 The amenity of Rivervale continues to steadily improve, further capitalising on its excellent location and adding to the drawing power of the suburb. The Belmont Forum shopping complex has developed into a major shopping and service hub for the area. It now contains a cinema complex and an expanding restaurant sector. Rivervale has close proximity to the well developed Victoria Park and East Victoria Park restaurant and café strips. The adjacent Burswood casino, hotel and golf complex is continuing to develop into an all-round entertainment area. This will be further boosted by the construction of the new football stadium. The opening of the Graham Farmer Freeway some years back proved a catalyst for growth and change enhancing the connectedness of Rivervale to the rest of the Perth metro area by road. The City of Belmont, incorporating Rivervale, Kewdale, Cloverdale and Belmont has been identified as a strategic Secondary Centre within the Directions 2031 planning guidelines which outlines the future development of metropolitan Perth. This extract below is taken from The Western Australian Planning Commission Directions 2031 Report. Rivervale as a suburb and the City of Belmont in particular provides for most retail, employment, educational and sporting events within a 3km radius of 5 Cleaver Terrace: Shopping/Retail Perth CBD Fast Food/convenience Rivervale Hotel Belmont Village Belmont Tavern Crown Casino Belmont Forum Shopping Centre Park Centre Shopping Centre Westfield Carousel Garden City Shopping Centre Recreation Local park Netball Courts Perth Royals Soccer Club 5km 210m 1.3km 2km 2km 2km 2.2km 3.5km 7.3km 11.3km 300m 1km 1.3km

7 Squash Works Belmont Perth Cricket Club Belmont Oasis Leisure Centre Carlisle-Lathlain Bowling Club Reading Cinemas State Tennis Centre Aqualife Centre Collier Park Golf Course Royal Perth Golf Club Transport Bus Train Station 1.7km 2.2km 1.7km 2.3km 2.2km 1.9km 3.7km 5.9km 6.4km 170m 2.2km Education St Augustine s 1km Belmont Primary School 1.3km Lathlain Primary School 1.7m Perth Montessori School 1.7m Belmont City College 1.9km Ursula Frayne Catholic College 2km Carlisle Primary School 2.1km Notre Dame School 2.4km Trinity College 3km Kewdale Senior High School 3.4km Polytechnic West Carlisle Campus 3.5km Kent Street Senior High School 4.1km TAFE International W.A. 4.9km Curtin University 6km Hospitals / Medical Centres Kooyong Medical Centre Lathlain Doctors Surgery Mercy Hospital Belgravia Medical Centre Mt Lawley Private Hospital Bentley Health Service Royal Perth Hospital South Perth Hospital St John of God Hospital King Edward Memorial Hospital Sir Charles Gairdner Hospital 890m 1.1km 3.5km 5.8km 4.4km 4.8km 4.5km 6.1km 8.3km 9km 9.3km

8 Major Employment centres Belmont Commercial/LIA Crown Casino Welshpool Commercial/LIA International & Domestic Airports Perth CBD Osborne Park Commercial/LIA 360m 1.9km 4km 4.9km 5km 9.8km Burswood Entertainment Precinct 1.9km from Cleaver Apartments RESTRICTED SUPPLY OF NEW PROPERTY IN RIVERVALE As described above, Rivervale is an attractive location for residents for a variety of reasons. Demand for property consistently outstrips the available supply. We know this by the historical long term capital growth figures for the suburb. There are severe limitations on the creation of new properties in Rivervale. As with other established inner suburban locations there are only a very small number of vacant lots and the main way to create new housing in the suburb is to demolish existing property and rebuild to a higher density (old houses are demolished and apartments and town houses are built) in precincts where the zoning allows this to happen. This restricted supply but with a continual demand for property is the positive circumstance we seek as investors. As the population continues to grow, demand in this location will increase and the continuing limited housing supply will maintain upward pressure on capital values and rents over time.

9 HOUSEHOLD STRUCTURE Cleaver Apartments Rivervale are designed to cater for the small household demographic which is a large proportion of the households within the suburb. Figures sourced from recent census results tell us that 43% of the households in Rivervale are: Lone person households 18% Childless couples 25% A further 7% are single parent households. Although we cannot break this figure down further a number of these single parent households would also be just 2 person households. From these figures we know demand for affordable 1 and 2 bedroom apartments exists in Rivervale but there has been a lack of new and affordable property to cater for this need. Graph Household structure RP DATA Suburb report CLEAVER APARTMENTS, RIVERVALE PRICE POINT AND YIELDS In recent years there has been an increased supply of higher density property in the Rivervale precinct to the west of Great Eastern Highway along the Swan River foreshore. These properties have tended to be more expensive luxury properties, a distinct new market segment for Rivervale. The apartments at 5 Cleaver Tce, Rivervale stand apart from these types of developments as they are located to the east of Great Eastern Highway in the heart of established, old Rivervale. The target market for these apartments is not the luxury apartment buyers or tenants but the abundant middle class demographic that has been attracted to Rivervale over many years. The price point of the Cleaver Apartments from both a rental point of view and a prospective owner - occupier will enhance their appeal to a large number of people and should ensure that vacancy periods will be minimal.

10 GROWTH AND VALUES Median Property Price: Land: N/A Houses: $555,000 Units/t/houses: $446,500 Source: REIWA Jun 2013 Capital growth - Units: 1 year 0.3% 5 Year -0.7% 10 year 14.1% Source: REIWA Jun 2013 Capital growth - Houses: 1 year 3.7% 5 Year 2.2% 10 year 9.4% Source: REIWA Jun 2013 RENTAL According to data supplied by the REIWA, Perth s vacancy rate as of the June 2013 quarter was 3.4%. A vacancy rate of approximately 3.0% is deemed to be a neutral market so at 3.4% Perth currently has a balanced rental market. In this market we would expect to see rental properties tenanted readily if the asking price is fair market value. We would not expect to see any significant rental increases unless the vacancy rate drops below 3%. Perth has however, seen rental increases of 10.5% over the past 12 months and we expect that these new price points should be maintained. Rent rises within the City of Belmont has been even stronger at 12.2% for the year to June Inner suburban areas with tight housing supply should continue to demonstrate greater upward pressure on rents over the medium to longer term. Source: REIWA data to June 2013

11 CLEAVER APARTMENTS IN SUMMARY In summary Cleaver Apartments cover off on the qualities an investor should be seeking in a residential investment property: Housing in Rivervale has displayed measurable, strong levels of capital and rental growth over extended periods of time. Cleaver Apartments is located in a suburb displaying excellent amenity and infrastructure. Rivervale has proven itself popular with tenants and owner occupiers for many years. The amenity of Rivervale is continually improving. The ability to provide housing stock in Rivervale is restricted by the fact that the suburb is inner suburban and established. New stock can generally only be produced by redevelopment of existing property. This situation results in strong demand for limited housing supply. Cleaver Apartments is designed to cater for the dominant and growing demographic groups (household structures) in Rivervale. The price point for owner occupiers and tenants is affordable. This should ensure the properties are in continual demand from these 2 groups when the time comes to either rent the property or sell it. OTHER DOCUMENTS AVAILABLE Plans Schedule of Inclusions Property Investment Analysis Availability and Pricing Rental Appraisal Reservation Form Contracts Legal Disclaimer The information contained in this project summary has been compiled by Aalto Property Solutions and whilst due care has been taken in the preparation of the contents of this document, the particulars as set out herein are provided for guidance purposes only. All information is given in good faith and believed to be correct at the time of printing, however any intending purchasers should not rely on them as representations or statements of fact and must satisfy themselves as to the correctness of each of them. Purchasers should accordingly make and rely upon their own assessments and enquiries to verify the accuracy of the information provided with their accountant and/or advisor. No person in the employ of Aalto Property Solutions has any authority to make or give any warranty whatsoever in relation to the property under review. Aalto Property Solutions does not assume any responsibility for the correctness of the information contained herein and its servants and/or employees shall not be liable for any loss or damage (whether contractual, tortuous or on any other basis) which may result from any person acting or relying upon this document or information

12 Colour Scheme: Endless Dusk Colour Scheme: Smokey Ash