Developer Direct Investment Available To All Investors - No Buyers Agency Fees Apply
WFH BUYERS RANGE - From $520,000
Developer Direct Investment Available To All Investors - No Buyers Agency Fees Apply
- Bedrooms
- 2
- Bathrooms
- 2
- Parking
- 1
- Property ID
- 3621722
I have just been given notice from the Directors of this development to make available the following purchase price guarantee offer for all new contracts issued before 31/08/2010.
This investment offers income, capital protection/growth & tax advantages.
NEW INVESTMENT OFFER UNTIL 31/08/2010
* 6% gross corporate leaseback for 5 years based on full purchase price
* reduced management fee of 8% for 3 years
* 2 weeks free accommodation for 3 years
* free furniture package to the value of $35,000 for 2 bed unit or $42,000 for 3 bed unit
* purchase price value guaranteed for a maximum period of 12 months commencing the end of the corporate leaseback expiration, with limited exposure to a maximum figure of 10% of the original purchase price (subject to valuation supplied by developer at that time once notified by the client of their intention to sell in year 6)
The way the Capital Guarantee will work will be as per the following examples.
EXAMPLE 1
Year 1, Day 1 - Client buys unit in at $500K under Capital Guarantee offer with 5 yr Corporate Leaseback in place at 6% gross - Fully guaranteed.
Year 6, Day 1 - Client instructs developer of their intention to sell the unit within next 12 mths.
developer instructs a market valuation on unit from well known reputable firm on bank's valuation panel.
For the purpose of the exercise if in a worse case scenario, the valuation comes in at $480K.
Client sells unit for $480K within the first 12 mths from Year 6, Day 1.
At settlement, Developer pays to client $20K difference between selling price & original purchase price (limited to 10% exposure of original selling price).
Client loss on sale = $Nil
EXAMPLE 2
Year 1, Day 1 - Client buys unit in at $500K under Capital Guarantee offer with 5 yr Corporate Leaseback in place at 6% gross
Year 6, Day 1 - Client instructs Developer of their intention to sell the unit within next 12 mths.
Developer instructs a market valuation on unit.
For the purpose of teh exercise if in a worse case scenario,the valuation comes in at $450K.
Client sells unit for $450K within the first 12 mths from Year 6, Day 1.
At settlement, developer pays to client $50K difference between selling price & original purchase price (limited to 10% exposure of original selling price)..
Client loss on sale = $Nil
The conditions that apply under this Capital Guarantee are as follows:-
*
maximum exposure is limited to 10% of original selling price
*
capital guarantee offer only applies for the first 12 months from the expiration of the 5 year corporate leaseback period, so if a clients sells during the first 5 years from original settlement, then the capital guarantee does not apply
*
property cannot be mortgagee in possession at time of sale
*
property cannot be a distressed sale at time of sale
*
if client sells below valuation figure obtained in year 6, then Developer will not be liable for this amount
RP Data has shown historical long term capital growth at between 9-10% per annum, each year for the last 10 years. So even if you assume a lesser figure of 5% for the sake of being conservative, then the likelihood of the above happening is very low, however, it is nice to know that it is there just in case. The reason they have introduced this offer now is as show of strength from the Developer in standing behind and backing this product.
I hope the above explanation helps with understanding how it will all work.
| Property ID |
3621722 |
| Bedrooms |
2 |
| Bathrooms |
2 |
| Garage |
1 |
| Body Corporate Fees |
$92 |
| Body Corporate Fees Period |
Weekly |
| Rates |
$47 |
| Rates Period |
Weekly |
