West End Boutique Project Opportunity In Brisbanes Growth Market

Master Class:

West End boutique project opportunity

in Brisbane’s growth market

With Neil Smoli

from Aviate Group

We help investors

build and manage

their property portfolios

In partnership with…

Real Estate Investar’s tools

Master class webinars

• Designed to share knowledge.

• Desire to provide extra value to our clients.

• Great for both new and experienced investors.

• Plenty of opportunity for Q&A.

• We will run these regularly throughout the year, and sometimes involve our partners to provide additional insight.

Todays webinar

1. How you can benefit from investing in the growing Brisbane market

2. Maximise growth and yield potential through selecting and investing in boutique projects.

3. How to evaluate and research the market fundamentals, when thinking about investing in new CBD / CBD fringe projects.

4. Location: Only 3km from Brisbane's CBD. In the heart of the multi-billion dollar cultural precinct and casino expansion.

5. Growth performance: This suburb has outperformed Brisbane CBD capital growth rates over the past decade.

Todays webinar

6. Large floor plans: 2 bed, 2 bath units with up to 94 sqm of total unit/balcony area.

7. *Cashflow: 4.7% yields and up to $3,000 positive cashflow after tax from year 1 onwards for typical investors (*depending on LVR, interest rate and tax rate).

8. Boutique size: Only 26 of 64 units remaining in this 7 level development, with basement car parking included.

9. Off-the-plan: Time for additional growth before settlement in 12-14 months.

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Audience poll

Which property investment category are you in?

OFF-MARKET BRISBANE PROJECT

Introducing: Neil Smoli Managing Director

Aviate: Established 2001. We deliver returns above industry average. 96.5% of all properties sold, have valued at

contract price. Unique 32-point investment criteria

selection process. End to end investment management.

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Table of Contents

Major Metro Focus – Brisbane

Suburb Focus – West End

Site Focus Q&A’s

Major Metro FocusBRISBANE

Brisbane Economic & GDP Growth

Its GDP growth from 2012-20, shows

Brisbane will grow faster than any other

mature city in the world over the next eight

years.

The current Brisbane $114 billion dollar

economy is forecast to grow to more than

$217 billion by 2031.

It is already known for its strong business

and cultural links with Asia and it is

continuing its push towards emerging as an

Australian Business Centre.

Source: Brisbane City Council Economic Development Plan 2012 - 2031

Source: RBA & RP Data

Median Dwelling Prices

Source: RP Data

Median Yields

Audience poll

Which city are you

investing in next?

Suburb FocusWEST END

West End Location

West End Catchment Area

Queen’s Wharf Casino – DraftThe $2B project will completely reshape the area, with the proposal stretching

10 blocks across the city. Construction set to begin 2017 and predicted to be

completed by 2022

Queen’s Wharf Casino – DraftThe construction is predicted to generate some 3000 jobs and 8000 permanent

jobs upon its completion.

Queen’s Wharf Casino – DraftThe development includes a new lyric theatre at QPAC and a pedestrian bridge to

link to South Bank.

Queen’s Wharf Casino – DraftA Sky Deck area that will feature outdoor restaurants on the 25th floor, a glass floor

observation deck and a Botanic Gardens observation deck

Queen’s Wharf Casino – DraftThe development will see five new hotels (three of which will have a six-star rating)

and 50 restaurants and bars fully accessible to the public

Queen’s Wharf Casino – DraftThe Treasury building will be transformed into a six-star boutique hotel, boasting

two levels of a high-end department store.

State Government have just released a draft master plan showing a rejuvenation of

this precinct to make it the best Arts & Cultural offering in Australia.

Cultural Precinct Master Plan – Draft

Re-modeled Gallery Riverfront, Gallery Frontage and The Edge


Revised gallery to GOMA link with covered way, Revised Stanley Place and

New Science Centre on Grey Street


Potential expansion Museum and Science Centre


Proposed canopied “Cultural Heart”, River Ampitheatre, the edge is remodelled

and regraded plaza connection to the Gallery Forecourt


Widening at QPAC full length, new entrance statement, covered way, plus a

5 Star Hotel over the new Theatre


The Kurilpa draft plan will provide a framework for transforming more than 25ha of

land and 1km of river frontage

Kurilpa Master Plan

Kurilpa Draft Master Plan

Features include:

A large 1ha riverfront park

An urban playground

A new river-based transport terminal

Riverfront amphitheatre

Accommodation

Public space

Cultural facilities

Culinary experiences

Kurilpa Draft Master Plan

“The plan proposes to double the amount of public space in Kurilpa, welcome 11,000

new residents and deliver 8,000 new jobs at the project’s completion.”Brisbane City Lord Mayor Graham Quirk

West End Estimated Resident Population Strong historical and forecasted population growth

Driven by a Young Professional demographic, whose high disposable

income continues to support the local rental market.

West End Infrastructure Investment

A significant infrastructure investment

boost over the last decade, benefiting

from substantial public and private

infrastructure investment in the region.

West End Employment OpportunitiesWest End is within

walking distance of the

Brisbane CBD,

Queensland’s largest

employment hub.

As well as, South

Brisbane, which has

evolved into a major white

collar employment node.

268,000 people and

115,000 new jobs

increase by 2031

BRISBANE CBD

131,000 222,000 2.53%

Current 2031 Growth

SOUTH BRISBANE

22,000 46,000 3.57%

Current 2031 Growth

* Source: National Institute of Economic & Industry Research

Gross Individual Weekly Income

22% of the West End inhabitants have a

personal income over $1,500 per week

Demographics Job Profile – employed as a

Professional or Manager

53% West End Catchment Area

42% Brisbane LGA

West End Vacancy Rates

3.00% reflects a balanced market (equilibrium point).

Currently at 3.70% (typical for this time of year)

West End New Product Demand

The demand has resulted in an imbalance

of apartment stock with supply unable to

keep pace with the increased demand.

This imbalance has driven growth in new

apartment rent to the extent whereby;

1 Bed are achieving a 44% rental

premium over existing stock.

2 Bed are achieving a 19% rental

premium over existing stock.

West End Product Demand

Audience poll

Which Brisbane suburb

would you pick to invest in

next?

West End’s Incoming Stock

942

385

702

701

DevelopmentApproval

DevelopmentApplication

Construction

Contracts Let

West End’s Incoming Stock

#N/A#N/A#N/A#N/A#N/A#N/A#N/A

80

#N/A

56

450

#N/A#N/A

223

70

276

381

317

269

416

#N/A#N/A#N/A#N/A0

100

200

300

400

500

Nu

mb

er

of

Sto

cks

Co

mp

lete

d

West End’s Stock Distribution

WEST END

Inner Bris. Comparable Analysis ($GSA)

Project name Suburb Average $ per m²

Light &Co WestEnd $6,340

Sorrento WestEnd $6,589

Elixir Fortitude Valley $6,793

FishLane South Brisbane $6,882

Central Village Fortitude Valley $6,909

The Hudson Albion $6,920

Promenade Hamilton $6,962

Canvas South Brisbane $7,031

Artisan South Brisbane $7,125


TheGreen Bowen Hills $7,192

TheMilton Milton $7,201

Mosaic Fortitude Valley $7,307

TheYards (North) Bowen Hills $7,457

Capitol Apartments South Brisbane $7,538

Brisbane Skytower CBD $7,827

Westmark Milton Milton $7,847

Alex Perry Fortitude Valley $7,998

Southpoint South Brisbane $8,055


Muse - CLIO WestEnd $6,281

Average $7,234

Site FocusOFF-MARKET PROJECT

Development Team

West Elevation

East Elevation

London Fields – Just Opened

Proposed Street Plan

Site Plan – Ground Floor

Typical Floor plate

Levels 1 - 6

Site Plan

Site Description

64 apartments in total

38 - 1 Bed, 1 Bath, 1 Car

26 - 2 Bed, 2 Bath, 1 Car

Commencement

Sept / Oct 2015

Completion

Q4 2016

Internal Perspective

High quality finishes

Stainless Steel

Appliances

Windows and natural

light to all bedrooms

2.7m ceilings

High quality finishes

Chrome fittings

Ample storage


Typical 1 Bed Apartment

1 bed, 1 bath

Internal 51 - 53

External 9 - 10

Price Range $385,000 - $425,000

Rental Estimates p/w $370 - $400

Gross Yield* 4.79% avg.

Typical 2 Bed Apartment

2 bed, 2 bath

Internal 76 - 80

External 13 - 78

Price Range $550,000 - $590,000

Rental Estimates p/w $520 - $550

Gross Yield* 4.72% avg.

1 Bed 1 Bath Analysis

1 Bed, 1 Bath

Purchase $425,000

Deposit (10% upfront &

10% at settlement)

$85,000

Gross Rental Yield 4.54%

Net Rental Yield 2.90%

Capital Growth Rate 6.00%

Inflation Rate 2.50%

Interest Rate 5.50%

Marginal Tax Rate 38.5%

Your Income per week

1 Year -$16

2 Years -$31

3 Years -$32

5 Years -$29

10 Years -$21

* Based on conservative figures and estimates

Tenant

You

Taxman

72%

22%

6%

2 Bed 2 Bath Analysis

Tenant

You

Taxman

76%

22%

2%

2 Bed, 2 Bath*

Purchase $590,000

Deposit (10% upfront &

10% at settlement)

$118,000

Gross Rental Yield 4.54%

Net Rental Yield 3.18%

Capital Growth Rate 6.00%

Inflation Rate 2.50%

Interest Rate 5.50%

Marginal Tax Rate 38.5%

Your Income per week

1 Year -$10

2 Years -$21

3 Years -$23

5 Years -$18

10 Years -$1 * Based on conservative figures and estimates

Audience poll

Are you thinking of

investing in this project?

NEXT STEPS

Aviate investor bonus pack

Rental vacancy protection to offset tenancy risk

Free depreciation report to establish potential tax benefits

Blinds package at developer’s cost

Next steps to secure an opportunity

• Download information pack;

• Project information

• Floor plans

• Stock/price list

• EOI – expression of interest form.

• Fill in with details with preferred unit # and scan/email.

• $1,500 holding deposit.

info.realestateinvestar.com.au/clio


Q & A Session

• Download information pack;

• Project information

• Floor plans

• Stock/price list

• EOI – expression of interest form.

• Fill in with details with preferred unit # and scan/email.

• $1,500 holding deposit.



West End Boutique Project Opportunity In Brisbanes Growth Market

Real Estate

Transcript of West End Boutique Project Opportunity In Brisbanes Growth Market