Investments

Property Investments

Investment property in South East Queensland has consistently delivered sound growth. The reason for this is that the region has had the fastest growing population in Australia for the past 10 years and this is set to continue.

The statistics are that 37,500 new homes need to be built in South East Queensland every year for the next 20 years. That equates to 3,125 per month - not half of that number are currently being built.

Some of the advantages of owning an investment property are:-

• Strong cashflows
• Taxation advantages
• Security for future borrowings
• Retirement annuity

The decline in the global economy has had its affect on the property market in South East Queensland. An over supply of developer's stock has placed many developers and their projects under pressure. Many projects are in receivership and now is the time to acquire a new FIRB approved investment property at the construction price. Capital growth over the next 5 years will be phenomenal.

Yields are also up on commercial property investments.

Management Investment Company

The Concept

The structure has been specifically designed to offer an investment opportunity to migrants to Australia where they are able to earn a safe return on the investment. Essentially the investor is acquiring a property management company which out sources its management function to Chateaux Property Management.

Greg Swemmer and his family migrated to Australia in early 2004, and are well versed with the enormity of starting a new life and career in a new country. Greg was also a founder of the company Link Business Sales in Australia which sold many businesses to migrants to Australia. This included sales to South Africans moving to Australia on various visas. In the process he has seen many people invest wisely, but has also seen unsuspecting purchasers of businesses lose substantial sums of money.

Investment in or acquiring a Management Investment Company results in solid returns underpinned by an asset where complete ownership and control of the asset rests with the investor.

The Structure

The Management Investment Company Structure is as follows:-

1. A new company is registered and the investor is the sole shareholder and one of the directors of the company.
2. A fully licensed independent real estate agent is appointed as a director of the company. This allows the company to obtain a corporate real estate licence and open a trust account with a bank.
3. An agreement is signed between the investor and the licensed agent governing the relationship. Real Estate is stringently regulated in Australia and so this agreement will be strictly adhered to.
4. A property management rent roll is identified for acquisition and a sales agreement is signed.
5. The investor transfers the funds to a solicitors' trust account to finance the acquisition. All agreements will be monitored by the solicitor as well as funds dispersed for the acquisition.
6. A due diligence is undertaken by an independent consultant.
7. Some banks in Australia lend money to property management companies up-to 40% of their value. This indicates the relevance they place on property rent rolls as an asset.
8. All the management agreements of the properties under management are entered into between the owners of the properties and the Management Investment Company. This forms the basis of the security of the investment.
9. An agreement is entered into between Chateaux Property Management and the Management Investment Company for the management of the portfolio.
10. The investor will earn a superior return on investment compared to acquiring property or long term fixed deposits with the banks.
11. The investor will have 100% control of the company's business bank accounts.

Additional Benefits

The Investors will derive many additional benefits. Among them are:-

• Additional income.

The investor can do a two week course and get a real estate sales certificate. This allows them to work as real estate agents, and also property managers and will therefore be able to work for their Management Investment Company and earn a salary. This immediately generates a cash flow for the family and releases the pressures of living on capital.

• Australian visa requirements.

An investment in the Management Investment Company will assist and strengthen the application for a permanent Australian resident's visa which leads to citizenship of the country.

If you are interested in obtaining more information on this opportunity please email Greg Swemmer on greg@chateaux.com.au.