In October, we published a post regarding our unique CoDeveloper Strategy that enables investors to buy property at wholesale prices, as explained here:
“The UGC Co-Developer investment strategy allows private individuals to invest in new real estate at wholesale prices, as the super wealthy do. The aim is to allow our clients to buy high quality real estate in high quality areas with strong growth prospects for a total investment that is significantly less than the market value of the property. This is achieved by being one of a small group of Co-Developers in a boutique development.”
Since October, UGC have secured the first Co-Developer site in Murarrie in Brisbane.
The site is geographically located in the up and coming suburb of Murarrie, picked by John McGrath as one of the best growth suburbs in Brisbane. Our Co-Developer site is ideally located within walking distance of all superb amenities including:
- Murarrie Train Station
- Cannon Hill Shopping Centre
- East Village
- Bus Stop
Based on the project size and profile, UGC are offering clients a guaranteed $48,400 return on investment PLUS a share of the profit. Current forecasts indicate an additional $20,000+ per CoDeveloper from the profit – all due within 12 months equalling an IRR of >60%.
Key features of the project:
- Estimated Total Return of 6% in 14 months on $110,000 invested (Before tax and transaction costs)
- Estimated Annualised Rate of Return – between 7% to 52.5% on $110,000 invested (Before tax and transaction costs)
- Requires $110,000 investment in development
- 12 townhouses to be developed at 49-51 Murarrie Road, Murarrie QLD (12km drive from Brisbane CBD)
- $525,000 estimated market value and contract price. Investors purchase at a guaranteed discount of $48,400 with potential increase to $70,000+ within 14 months
- Contract prices are $100,000+ cheaper than a similar development 100 meters from our site (portavilla.com.au) and approximately $150,000+ cheaper based on settlement capital required
- 14 month estimated timeline – Completion date expected June 2017.
- 7% – 5.9% estimated rental return on settlement capital
- Co-Developer townhouses are 3 bedroom, 3 bathroom, 1 car space with 133 square meter internal living space
- Co-Developer townhouses have been designed to allow for conversion into 2 bed, 2 bath & 1 bed, 1 bath duel occupancy investments to increase cash flow if desired
- Properties will be finished to a high level standard.
- Located within 1 km of Murarrie Train Station, Parkland, Cannon Hill Shopping Centre, East Village Shopping Precinct Development, Multiple Bus Stops and Bus Routes.
Investment qualities of Murarrie:
- In early phase of its gentrification cycle. The big money has only just started to be invested in the area.
- A quality suburb, that represents value and is in the early phase of a new price uptrend
- Located next to suburbs like Cannon Hill and Morningside which are solid performers. We are aiming to take advantage of the ripple effect.
- Significantly higher cash flow than Melbourne and Sydney’s average cash flow generation
- Conveniently located to many desirable public amenities.
The UGC CoDeveloper strategy aims to generate returns of $40,000 to $70,000 on an upfront $100,000 investment over a maximum investment term of two years. The strategy stipulates that the return is used to settle on a completed property within the development. Compound returns on invested capital are targetted between 20% to 30% per-annum.
The information contained in this article is General in nature and has been prepared without taking into account your objectives, financial situation and needs. When assessing any investment, you should first consider that past performance is not a reliable indicator of future performance.
Brett is a Licensed Real Estate Agent and manages United Global Capital's property projects and client acquisitions.