Property Investment
Those of you who read my last Newsletter – Investment in Property - may recall I said “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.”
Those of you who read my last Newsletter – Investment in Property - may recall I said “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.”
In recent years, from a personal and business point of view, I’ve been
fascinated by the explosion in the demand for property and the prices
obtained here – especially in Auckland and other cities.
The current situation is aptly summed up in an article in realestate.co.nz which reports on residential property “For
the first time, data from realestate.co.nz showed all-time high
national average asking prices, combined with record lows in new
listings and total homes available for sale”.
Its author Vanessa Taylor writes “The total number of homes available
for sale reached never before seen lows around New Zealand, while the
national average asking price sat over $700,000 for the first time since
records began 13 years ago. We saw a record low for new listings
nationwide”.
In the meanwhile the demand for houses cannot meet supply, major reasons being a combination of high immigration and low interest rates.
This continuing interest in property has prompted me to update the
investment opportunities we have in which qualified investors can
partake in the high profits available from property development.
Retirement Village development
The increase in the population here not only brings up the demand for
houses now, but also the future demand to meet the retirement
requirements as people age.
So when I read a recent article in the Herald on Oceania Healthcare’s interim report
showing a net profit after tax from $1.3 million to $14.9m for the
half-year to November 30, 2019, this came as no surprise to me.
Nor did the fact that we received huge interest from investors in the
retirement village in Paeroa (now fully funded) and the new one in
Amberley just out of Christchurch - which we expect to close fully funded in the next week or so.
The Amberley village predicts a 64% return to investors from its
development profit. If that interests you please respond now to this
email for a copy of the IM.
Luxury Home development
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.
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 40% pre-tax return to investors. A copy of the IM is
available on request.
Funeral Home development
Stonehaven Funerals & Memorials Limited is a funeral business in
Gisborne that the owners started as a monument business in 2005. Its
existing premises are too small to meet demand.
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. 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.
Want to Know More
If you’d like to know more about these Offers email or give me a call on 021 902 901.
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The above 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
For more information, please click the contact button below to send us a message.
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