Investment in Property
Many years ago, when I was introduced to my first job in Investment Banking, I still remember the advice from the founder of the business saying “Property has been, is now, and always will be the best investment.”
Many years ago, when I was introduced to my first job in Investment
Banking, I still remember the advice from the founder of the business
saying “Property has been, is now, and always will be the best investment.”
Well many of those caught in the previous recession here - which was initiated by the U.S. Housing Bubble of 2008 - may not agree. But a recent article in Stuff, entitled Property investment: Is it still worth it?, comes to the fairly obvious conclusion that owning your own house is the first step in securing long term financial security.
Property developments are of course a different story from buying a
completed house or commercial building. Even subdivisions have their
risk. But as I look back at the hundreds of them I’ve seen, it is an
investment that has it risks, but there are few that offer the same
rewards.
So here are a few examples of property related projects we have available for investment for those who qualify.
Retirement village in Christchurch
The original offer
to participate in the development of a retirement village in
Christchurch was seeking $4.5 million from investors. Well now
sufficient funds have been raised to complete the purchase of the land -
which has been done - and proceed with the requirements to commence
construction.
This is a large project and a big investment in the small local
community. The promoters have recently met with the mayor and chief
executive of the Hurunui district council who are naturally excited
about a $160 million project for the area. The council is currently
setting up a special projects team to fast track the resource consent
process.
There is still the opportunity to participate as an investor in the
village, so I would suggest that anyone who has an interest in a medium
to long term investment contacts the promoter Tim Bartells. It’s an
asset that’s ideal for a family trust.
Tim is available to talk to you directly on 021 871 522, or email him at timbartells@xtra.co.nz. I’ve got a text from him saying “I’m
hoping that people will call me over the Christmas break. An
opportunity like this is very rare as the big players never offer a
chance to get in on the ground floor. This only becomes available with
private villages – which are few and far between.”
It’s a rare chance to participate in the ownership of a large retirement
village project at the ground floor, and to receive a projected 64%
return on a longer term tax effective investment. Yes the development profit is not taxable even if you sell out!
And as the baby boomer generation reaches retirement age, a service with growing demand. See more on our website. A copy of the IM is available on request.
Luxury home in Nelson
Our client is an experienced Property Investor and Developer who intends
to build a luxury home on a vacant elevated site atop a prized bay-side
location known as ‘The Cliffs’ in Nelson.
The house contains one spacious master bedroom, with an ensuite and
walk-in wardrobe, plus a further two bedrooms sharing a second ensuite.
In the center there is an open plan kitchen with a walk in pantry and
separate toilet and a spacious dining and lounge area with a feature
double sided fireplace. You can see great pictures of the house, its
plans, and the location in the IM.
A new company has been formed to undertake the purchase of the land and
build and sell the completed house. This will be owned 50% by interests
associated with the promoter as his fee for securing, arranging and
managing the construction of the house and its sale. He is also
providing a personal guarantee on the debt raised to assist in the
purchase of the section and the development of the house. The investors
will not be required to guarantee that loan.
The other 50% will be owned by the investors who participate in this
Offer. The budget shows a time frame of 2 years to build and sell the
house and a 31% pre-tax return to investors. See more on our website. A copy of the IM is available on request.
Funeral home in Gisborne
Here’s a “development” which has come about because our client’s
existing premises are too small to meet demand. Stonehaven Funerals
& Memorials Limited is a funeral business in Gisborne that the
owners started as a monument business in 2005.
They now have consent to build a new Funeral Home building. The facility
will include a public auditorium with seating up to 350 people, a
smaller auditorium for small services with seating up to 50 people, two
onsite after hours viewing facilities, arrangement rooms, a mortuary, on
site catering facilities, a monument sales area and an area for a
cremator.
The complex will have car parking for up to 61 cars. There will also be
a large work area for the monumental work and bench top fabrication.
A new property company has been formed to purchase the land and consent
and build a new Funeral Home on the site; which is directly opposite
Gisborne’s main public cemetery. The Home will enable the full funeral
service and catering to be held at one location. Bank finance for the
development has been arranged. The existing operating company will enter
into a 15 year lease with generous terms and rights of renewal.
The promoters will also provide the land and consents for a share in the
property company. Investors will receive yearly interest and capital
returns on their investment. They have also offered to give investors an
optional buyout in 4 years’ time. A copy of the IM is available on
request.
Affordable houses in Auckland
New Zealand faces a major housing shortage. There is a need to build
more than 100,000 homes here over the next ten years. Land and house
speculation, infrastructure underspend, cost of materials, expensive
building methodology, and high compliance costs, have resulted in demand
not being able to meet supply.
And more than half this demand is located within in the golden triangle of Auckland, Hamilton and Tauranga.
FirstBuild uses a methodology that is well proven and refined in
overseas markets like America, Europe and Asia. It provides a
significantly reduced cost of building or buying a house, and reduces
the build time from day of consent to fully completed to 4 weeks
compared to the industry average of 25 weeks.
FirstBuild Construction Auckland Limited has been set up to build the
modules and deliver the houses. It has constructed its demonstration
module in Whangarei and once the initial 5 houses has been completed and
further sales secured, the business intends to raise more capital to
progressively build manufacturing capacity. This will include
semi-automation.
As an initial offer it is seeking $800,000 to deliver 5 house and land
packages in Auckland for sale plus a house to be built as a show home to
secure future sales. Investors in this initial project will have the
first right of refusal to invest into these further capital rounds. A
copy of the IM is available on request, plus the promoters have an
excellent visual presentation.
Want to Know More?
If you’d like to comment on this newsletter, or to know more about any
of the Offers above, reply to this email or call me on +64 21 902 901
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Any reference above to investment is not an offer of financial
products that requires disclosure under the Financial Markets Conduct
Act 2013 (Act) and is available only to wholesale investors as defined
by that Act. It is intended for distribution only to selected people to
whom, under the relevant laws, it can be lawfully distributed. It cannot
be distributed in any other jurisdiction, or to any other people. It is
not an offer or solicitations in any jurisdiction in which such offers
or solicitations are not authorised, or in which the person making such
offers or solicitations are not qualified to do so, or to any person to
whom it is unlawful to make such offers or solicitations. Any
representation to the contrary would be unlawful. No action has been
taken by any person that would permit a public offering in any
jurisdiction where action for that purpose would be required.
Cheers
John Paine B.Sc., Dip BIA
TBK Capital Limited
Level 10, 120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Mobile +64 21 902 901
Email john.paine@tbkcapital.co.nz