Residential Property Fund 1

Wealthcheck's Residential Property Fund 1 is a retail Fund, suitable for private investors, including Self Managed Super Funds. The Fund contains a portfolio of land packages, with newly built properties to maximise the tax efficiencies available to investors. The Fund, due to be launched in February 2012, has been developed to provide investors with regular rental returns as well as the potential for capital growth over the investment term.

The main benefits of this style of investment to investors are:

  • Ease of management - indirect access to residential property without the need for direct investment and management.
  • Diversification – investment in a Fund with a portfolio of properties, offering balanced geographic and tenant diversity, rather than investing in one investment property only.
  • Affordable Investments for Self Managed Super Funds – self managed super funds can invest as little as $20,000, allowing them to use the balance of their fund to maintain diversity in other investment products.
  • Available to investors as a part of a transition to retirement strategy – structured to be suitable for Australian investors.
  • Minimal Gearing – the Responsible Entity proposes that the Fund have only initially very low gearing, designed to cover the initial establishment costs of the Fund (stamp duty etc), which will allow 100% of the capital raised under this PDS to be invested directly into property.
  • Simple Structure – as opposed to the more complex structured products available, the structure of this Fund and its management enables transparency and frank disclosure to investors, as well as costs which are less than those associated with more complex investment products.
  • Access to Residential Property at Wholesale Rates – Investors will obtain exposure through the Fund to residential property at standard wholesale rates, less the marketing incentives offered to property marketing agents.
  • Management aligned with investors – The remuneration structure is designed to remunerate the performance of the Responsible Entity and other principals to align their interests with those of investors. Performance fees are payable based on the level of capital growth and rental returns on the Properties within the Portfolio exceeding pre-set benchmark levels.
  • Depreciation – As the Fund will be acquiring newly built properties, the depreciation allowable will maximise the tax efficiency of distributions from the Fund. The initial depreciation calculations indicate that the rental returns distributed to investors will be tax free for the first three years of the Fund’s operation and tax effective for the balance of the term of the investment. Investors should seek advice from an independent accountant to identify the taxation benefits for your situation.

Please contact us for a PDS: info@wealthcheck.com.au

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