Progress Invest

Interesting read and despite the interest rate rises it’s not only the investors that see value in the Perth market.

Perth property market standing alone as 2023 growth prospect Perth property market standing alone as 2023 growth prospect While the rest of the country stares down the barrel of large property price falls, Perth is tipped to buck the trend and increase in value in 2023.

𝐋𝐚𝐧𝐝 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲

> Carpark lease back lots.
> 8% return paid annually in advance.
> Minimum 2 year leaseback with options.
> National land development company.
> Three signature estates.
> Lots located amongst display homes.
> Valuation by Burgess Rawson.

𝐏𝐫𝐢𝐜𝐞𝐬 𝐬𝐭𝐚𝐫𝐭 𝐟𝐫𝐨𝐦 𝐚𝐬 𝐥𝐨𝐰 𝐚𝐬 $𝟏𝟐𝟎,𝟎𝟎𝟎.

This is a rare opportunity to purchase land in quality land estates by national developer LWP and receive a return from day 1.

No need to build as LWP will lease the lot for a minimum of 2 years* to use as carpark within their builder display villages.

LWP will even pay the rent 12 months in advance.

All lots have been independently valued by Burgess Rawson so you have peace of mind the value is not inflated by the lease and is current market value**.

Being located within builder display village the lots are surrounded by the latest in housing quality and design.

Once the lease is finished LWP will return the lot back to its original condition and any fencing and landscaping incentives will also be retained.

The estates and lots are all in great locations in Perth.

Prices start from $120,000. Rent in advance from $9600 pa.

Contact us here for more detail or via email [email protected]

* Leases have option provisions that may see the term extended.
** based on current market conditions and valuation and conditions may change.

Research house BIS Oxford Economics has forecast the next housing construction peak within five years, with strong population growth and a projected undersupply in some states expected to create a renewed upswing in residential building by 2023-24.

BIS Managing Director Robert Mellor explains the driver of growth being population increase and stock decline. He also discusses the need for rental yield to improve to encourage investor activity.

In Perth, I feel we have already reached that point where property is well priced and showing good rental yield in some areas.

For some time I have been following and researching a Perth suburb only 22 km from the CBD with established public transport, schooling and high amenity. There has been a significant reduction in value through the downturn however its clear the established stock is now at land value.

As an example an older 3 bedroom home on over 600sqm is available at under $200,000. Currently tenanted at $250 pw. Much of this area is zoned R15/40 permitting development. Whilst I am not here to try to sell you a quick buck or fast capital growth as we move through our next cycle you simply will not be able to replace this stock.

Enjoy the article.

Housing Construction Set to Pick Up 55pc by 2023: BIS Slowing building approvals may prolong the property market downturn, with construction starts expected to decline a further 8 per cent...

The Perth Rental Market Continues to Improve.

Perth’s rental market continues to gain momentum, with 82 per cent of Perth suburbs recording either stable or increased median rent prices, where there were enough statistically significant transactions during the period.

The president of RIEWA Mr Collins recently commented “While Perth’s overall median rent price remains at $350, we are seeing an increasing number of suburbs record upward movement in prices, which is a welcome development for Perth landlords and suggests it’s only a matter of time before Perth’s overall median rent starts to climb.”

The 10 suburbs to record the biggest increase in median rent price during the month were North Perth, East Perth, Perth, Dudley Park, Cloverdale, Meadow Springs, Padbury, Kardinya, Lakelands and Port Kennedy.

Mr Collins noted “Of the 10 suburbs, North Perth, East Perth and Perth saw the most notable improvement in price, with their medians lifting by $20, $20 and $18 respectively, a substantial increase on February and a testament to the increasing demand from tenants,”

Perth’s vacancy rate is currently the lowest it’s been in six years at 2.3 per cent, with declining stock levels and increased rental demand. The market is turning in favour of the landlord and its a matter of 'when' not 'if' rents will increase this year.

There is a strong correlation that when the vacancy rate reduces to below 2.5% that the WA market starts the recovery phase in the property cycle. In the 2008-2009 downturn the vacancy rate reduced to under 1.9%, 2010-2011 to 2.8% and by 2012 was 1.8%. Whilst this latest downturn has been longer the vacancy in April 2014 was 4.0% peaking at over 7% late 2017 and as reported is now 2.3%.

There are other factors in play such as tighter lending policy, low population growth and lack of confidence in the real estate market, however the labour market is improving as is general consumer and business confidence.

For those looking to invest now, the reset property pricing and positive forecasts for rents in the market will produce solid yields.

Currently, we are looking at well located single dwelling product or opportunistic purchase of distressed assets for long term investment.

At the same time there are opportunities for sophisticated investors for shorter returns through syndication and debt funding, however show caution in this area and always research the history and experience of the developer.

If you are interested in understanding more about what investment option best suits you feel free to PM us.

When it comes to location - there are few suburbs located better in metropolitan Perth than Woodvale.

• Surrounded by parks and playgrounds
• Choices of good schools
• Easy access to Joondalup for shopping and public transport
• Established suburb just 19km from the Perth CBD
• Yellagonga Regional Park at the doorstep for a healthy outdoor lifestyle

Just Add Furniture - Progress Invest All you will need to live in one of these modern, spacious low maintenance two-storey homes on elevated lots on the edge of Yellagonga Regional Park in Woodlands Western Australia is furniture. Now selling off the plan just move your furniture in, and you’re home!...

Debate on the benefits or negatives of removal of negative gearing on established properties will continue to grow.
Property investment has many channels and opportunities from direct investment, unit trust and syndication, not just the traditional residential investment property. As one model might see reduced options others will open up. Feel free to contact us to discover more.

"Labor's negative gearing policy would cost the budget $32 billion" Proposals to limit negative gearing and reduce capital gains tax concessions will cost the ALP a staggering $32 billion in just 10 years, according to research by the Property Investment Professionals of Australia (P**A).

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ANNOUNCEMENT
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We are delighted to announce that our applications for investors in our capital raise for the new Munster land sub division project has closed and was fully subscribed.

Obviously the attraction of this boutique 24 lot residential land development in the growth area of Munster in Western Australia was deemed as an attractive proposition, needless to say we are on the look out for another.

This type of investing is not your typical property investment offering but we now know that in the current investment environment, it is perceived as an attractive opportunity.

It is with this in mind that we have decided to host some information sessions outlining this type of investment in the form of seminars and webinars.

If you would like to know more about this type of investment please drop us an email to [email protected] and we will keep you in the loop as we unveil the sessions.

Chris Lewis

Director

With the coming federal election property investment is in the news a lot.
Now that the banking royal commission is complete, property investment will be in the spotlight as to credit worthiness of borrowers and the availability of mortgage finance.
And with the Melbourne and Sydney property markets on the slide, property investment will be deemed to be risky as people lose equity in their homes.

All this said – guess what?

People still need homes, and people still want to live in great locations…

This is why at Progress Invest we believe in helping people understand how to find property hotspots. But location is not enough we also believe that external factors always present opportunities and thanks to being in the Progress Group – one such opportunity has arisen.

THIS IS NOT FOR EVERYBODY

If you qualify you might have interest in learning more about investing in a boutique 24 lot residential land development in the growth area of Munster in Western Australia. Munster is around 5 km’s from Fremantle and a short trip to the ocean. (a perfect location).

The key features of this exciting offer are:
• All major planning approvals are in place.
• Project works expected to commence in May 2019.
• First dividend and capital returns December 2019.
• Target internal rate of return of 36.09%.
• Equity raising fully underwritten.
• Experienced management team.
• Elevated land offering a selling point of difference.
• Located only 22km from Perth CBD.
• 5 mins to Woodman point.

This is not your typical property investment offering. This is not a take out a loan, buy a block, build a house and find a tenant investment.

This is for people who have at least $40,000 to invest and are seeking a rate of return of circa 36% over a 1-year period.

Up until now investors have required $200,000 to participate in this project but we have been able to secure 5 placements at $40,000 minimum for Progress Invest subscribers.

If this sounds like you and you’d like to know more about this project and this method of investing, please drop us an email to [email protected] with your name, and contact telephone number and title your email Munster and we will help you out.

Chris Lewis

Director