Property Investment Report - PIR 1137 Unit 90 21-29 Third Avenue, Blacktown - Positive Real Estate
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Property Investment Report
PIR 1137
Unit 90
21-29 Third Avenue, Blacktown
NSW 2148
Positive Real Estate Pty Ltd
Suite 3, Level 2, 11 Albany St
St Leonards
NSW 2065
P: +61 1300 365 886
F: +61 2 8282 4432
www.positiverealestate.com.au
Table of Contents
Table of Contents ............................................................................................... 2
Disclaimer......................................................................................................... 3
Unit 90, 21-29 Third Avenue Blacktown ................................................................. 4
Liquidity Meter .................................................................................................. 5
Property Overview ............................................................................................. 6
Property Overview ............................................................................................. 6
Key Investment Indicators ............................................................................ 6
Price List .......................................................................................................... 7
Tenancy Details ................................................................................................. 7
Strata Fees ....................................................................................................... 7
Population Forcast.............................................................................................. 8
Greater Western Sydney AFl ................................................................................ 8
2025 Blacktown Plan ........................................................................................ 10
DISPLAY PHOTOS ONLY .................................................................................... 11
Transport........................................................................................................ 13
Attractions ...................................................................................................... 14
Blacktown Olympic Park .................................................................................... 15
Growth and Development .................................................................................. 16
Location Map ................................................................................................... 17
Google Earth Map ......................................................................................... 19
Google Street View .......................................................................................... 20
Unit 90- Lease ................................................................................................. 21
Property Financial Details .................................................................................. 22
Sales History ................................................................................................... 24
Appendix I| Site Plans ...................................................................................... 25
Appendix III| Capital Growth Rates .................................................................... 27
Appendix IV| Demographic Details ..................................................................... 28
Appendix IX| Risks ........................................................................................... 29
Appendix X| Glossary of Terms .......................................................................... 31
CONFIDENTIAL | PAGE 2
Copyright 2009. Positive Real Estate Pty Ltd
All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its
accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Disclaimer Positive Real Estate Pty Ltd does not provide advice on investments. All interested parties must rely on their own research before making any investment decision and should seek advice from a qualified Financial Planner or similar professional. The information contained within this document has been compiled from various sources to assist you in conducting your due-diligence. Please ensure you validate all information contained within this document. All sources for information contained within this Property Summary will be disclosed at your request. Positive Real Estate Pty Ltd will not accept responsibility for inaccurate information provided from external sources or third parties. As part of your due-diligence, it is the Purchaser’s responsibility to seek a legal opinion of the contract and any additional terms or clauses. You must adhere to the terms, conditions and subject clauses contained within the contract of sale. We note that Positive Real Estate Pty Ltd has made a number of assumptions when preparing this analysis – these assumptions have a material impact on the financials and therefore should be assessed carefully by investors. CONFIDENTIAL | PAGE 3 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Unit 90, 21-29 Third Avenue
Blacktown
Investment Brief
Demographics Young families, majority
are blue collar workers.
Infrastructure In 2010/ 2011 council will
spend $36 million on
infrastructure investment.
Motorway (M4), Westlink
(M7) and the Hills
Motorway (M2).
Blacktown station,
Westpoint shopping
Suburb Yield 5.5 – 6%
Investment Growth / High Yield
Type
Economics 2025 Blacktown Council
plan to create regional
Property 2 Bedroom Unit city. Western Sydney AFL
Type team.
Stage Complete
Population Suburb approx 39,000,
Internal 104 Sqm LGA approx 287,000. The
Size City of Blacktown has the
largest population of any
Property 5 years old LGA in NSW
Age 43% increase by 2036
Statistics
Lending 80-90 LVR % Investment $290,000
Category
Weekly Rent $380
Gross Yield 6.7%
Net Yield 4.7%
Market
Timing Implied Tax
40%
Rate
Yr1 Pre Tax
-$7,885
Cash Flow
p.a
Yr1 After
Market Tax Cash -$1,697
Growth Flow p.a.
Note:
Completed on 100% finance. For more financial
information see property financial details. Buyers please
be aware that all information has been collected by third
parties and buyers need to conduct their own further due
diligence on all aspects suggested within this report.
CONFIDENTIAL | PAGE 4
Liquidity Meter CONFIDENTIAL | PAGE 5 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Property Overview
Positive Real Estate has brokered an excellent development in the Western Sydney suburb
of Blacktown. Blacktown is located 13km West of Parramatta and 38km West of Sydney
CBD. On offer consist of 2 bedrooms, 2 bathrooms and 1 lock up garage. Some other
features include built in wardrobes, lift access, air conditioning, modern kitchens, gas stove
top, white granite bench tops internal laundry, balconies.
Sydney’s Greater Metropolitan Region extends from Kiama in the south to Port Stephens in
the north and west to the Blue Mountains. According to the Urban Development Institute of
Australia, Sydney’s Greater Metropolitan Region accounts for 25% of the Nations value–
added Gross Domestic Product and the City of Blacktown accounts for 20% of this region’s
total Gross Domestic Product.
The vast and rapidly developing employment hubs of Norwest Business Park and
Huntingwood are both only 10 minutes by car and 15 minutes by Bus.
Residents also enjoy a 5 minutes drive to the recently opened M7, M5, M4 & M2 Orbital
Expressway. The substantial new road system places these units at the centre of Sydney’s
road transport network.
Key Investment Indicators
Yields of up to 6.7%
Purchase price $290,000
400m to Blacktown Train Station
400m to Blacktown Westpoint Shopping Centre
Internal size 104 sqm
Low price point
5 years old
Strong rental demand
Top floor, north facing, 20sqm balcony
CONFIDENTIAL | PAGE 6
Copyright 2009. Positive Real Estate Pty Ltd
All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its
accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Price List
Internal External Total
Unit Price Bed Bath Car Rent sqm sqm sqm
90 $290,000 2 2 1 $380 104 20 124
Tenancy Details
Lease expiry June 2011
Strata Fees
• Water: $130.95 P.Q
• Council: $194.90 P.Q
• Strata: $700 P.Q (approx)
CONFIDENTIAL | PAGE 7
Copyright 2009. Positive Real Estate Pty Ltd
All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its
accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Population Forcast Greater Western Sydney AFl CONFIDENTIAL | PAGE 8 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
CONFIDENTIAL | PAGE 9 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
2025 Blacktown Plan As most of Sydney heads toward capacity, Blacktown will continue to grow. Blacktown is a youthful City and its potential will create opportunities for its residents well beyond 2025. The City of Blacktown is a focus for major employment lands and will continue to experience significant growth in job numbers. Arguably the greatest influence on recent local economic growth has been the construction of the Westlink M7 Orbital Link that runs through the City. In fact, half of Sydney's industrial land development over the next 5 years is expected to occur along the M7. CONFIDENTIAL | PAGE 10 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
DISPLAY PHOTOS ONLY CONFIDENTIAL | PAGE 11 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
CONFIDENTIAL | PAGE 12 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Location and Surroundings
This property is situated in Blacktown which is a suburb in the City of Blacktown, in
Western Sydney, in the state of New South Wales, Australia. Blacktown is located
34kilometres west of the Sydney central business district and is the administrative
centre of the local government area of City of Blacktown. Blacktown is also the largest
of any suburb or township in New South Wales.
The Blacktown Commercial Business District is located close to Blacktown railway
station. Westpoint Blacktown is a major shopping centre in Blacktown. Blacktown has
many restaurants and bars. The Blacktown CBD features the following landmarks:
• Blacktown City Council corporate head office
• Blacktown Courthouse
• Max Webber Library -Blacktown City Council's newly completed central library
• Blacktown Hospital
• Patrician Brothers College Blacktown
Transport
Access into and out of Blacktown is provided by the transport links including the
Western railway line between Sydney, Penrith and Richmond; the Great Western
Highway, Richmond Road; plus the M2, M4, and M7 Motorways. There are 1,019 km of
local roads and 100 km of Regional roads within Blacktown.
The Blacktown railway station is an interconnecting station for the Countrylink services
between Dubbo and the country terminal in the Sydney CBD. It is also a bus
interchange utilised by Westbus and Busways transport operators providing connection
to local suburbs not directly linked by rail.
These private bus companies offer interconnection services between many of the
railway stations within the City of Blacktown and beyond, extending the reach of public
transport along the main road corridors of the Great Western Highway, Prospect
Highway, Richmond Road, Windsor Road and other major roads throughout the area.
Cycling is being increasingly catered for throughout the city. The council has a
published map showing over 65 km of existing cycleway (including some cycleways on
shared roads), however there are extensive biking and walking tracks which are not
included on that map.
Blacktown City Council proposes that by December 2006 there will be 125 km of
cycleways assisting in providing safe bicycle access throughout the city. This does not
include recreational cycleways such as those in the various parks and gardens
throughout the area.
CONFIDENTIAL | PAGE 13Attractions
Fairfax Community Stadium (Used by NSWPL team Blacktown City Demons) -
7,500 capacity (1,200 seated)
Blacktown Baseball Stadium (Baseball) 5,000 capacity(1,200 seated)
Blacktown Softball Stadium (Softball) 5,000 capacity(1,100 seated)
Blacktown Showground (festivals and cultural events/activities)
Francis Park (Rugby League, Soccer and Athletics)
Blacktown Aquatic Center
Alpha Park
Blacktown Hospital-
Is an acute care hospital in Blacktown, New South Wales, Australia. Together with
Mount Druitt Hospital and associated community health centres, it forms Blacktown-Mt
Druitt Health, which is a unit within the Sydney West Area Health Service.
Blacktown hospital has approximately 400 beds, and major clinical services cover
medicine, surgery and obstetrics and gynaecology. It operates a 24-hour emergency
department and a full Intensive Care Unit and CCU. It also has 24 hour medical imaging
and pathology services on site.
The hospital is a teaching hospital of the University of Western Sydney's Blacktown-
Mount Druitt Clinical School (commenced in October 2007) and University of Sydney's
Western Clinical School.
CONFIDENTIAL | PAGE 14
Copyright 2009. Positive Real Estate Pty Ltd
All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its
accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.Blacktown Olympic Park Softball- Blacktown Olympic Park's softball precinct is rated as the best Olympic softball facility and is regarded as being amongst the best Softball venues in the world. Athletics- Situated in the picturesque grounds of Blacktown Olympic Park, this world-class facilitiy caters for the full array of track and field events including steeplechase, javelin, long jump, high jump, pole vault, triple jump, shotput and discus. AFL/Cricket Stadium- Boasting a 10,000 capacity stadium with a 1500 seat grandstand on Oval 1, the AFL/Cricket Facilitiy includes Oval 2 with seperate ammenities block and fantastic function facilities with a spectacular view of the fields. Indoor Practice Centre- World class practice facilities for Cricket are right here in Western Sydney at the Indoor Practice Centre. 5 indoor & 5 outdoor synthetics lanes & 16 turf lanes are available for hire. Baseball- There are three international standard, full size playing fields, associated building and stadium infrastructure, and extensive training equipment. The facilities playing surfaces are professionally maintained to national standards by a team of dedicated grounds staff. Soccer- Blacktown Olympic Park has a fantastic soccer field that is ideal for training, development camps and competition. The fully irrigated field (Athletics Field Three) has sheltered seating areas and is fully floodlit. International Goalkeepers Academy- Led by former International Goalkeeper Jim Fraser, the International Goalkeepers Academy runs specalised program for goalkeepers of all ages and skill levels at Blacktown Olympic Park. CONFIDENTIAL | PAGE 15 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Growth and Development Over the last several decades, Blacktown's growth has been sustained and rapid, contributing to its present status as the most populous City in New South Wales, the third largest in Australia behind Brisbane City and the Gold Coast and the eighth fastest growing City in Australia. Large scale urban development has contributed to Blacktown's continued population growth and to the development of new estate areas which has led to the establishment of 45 suburbs to date. Blacktown therefore encompasses a mix of older established areas and new developing areas. Blacktown's diverse land use also continues to attract developers and retailers to the largest quantity of zoned and serviced industrial and commercial land throughout NSW. Blacktown's Central Business District/City Centre provides residents with numerous shopping facilities and services and is the Commercial Centre for government departments and local business. This includes a court house, police station, shared State Government Office building, and the Westpoint shopping mall. CONFIDENTIAL | PAGE 16 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Location Map CONFIDENTIAL | PAGE 17 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
CONFIDENTIAL | PAGE 18
Google Earth Map CONFIDENTIAL | PAGE 19 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Google Street View CONFIDENTIAL | PAGE 20 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Unit 90- Lease Lease Unit 90 – Expires 26.06.2011 CONFIDENTIAL | PAGE 21 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Property Financial Details CONFIDENTIAL | PAGE 22 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
CONFIDENTIAL | PAGE 23 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Sales History CONFIDENTIAL | PAGE 24 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Appendix I| Site Plans CONFIDENTIAL | PAGE 25
UNIT 90 – TOP FLOOR CONFIDENTIAL | PAGE 26
Appendix III| Capital Growth Rates CONFIDENTIAL | PAGE 27 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Appendix IV| Demographic Details CONFIDENTIAL | PAGE 28 Copyright 2009. Positive Real Estate Pty Ltd All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.
Appendix IX| Risks
All investments involve risk. While drivers of growth and other attributes that have a
positive effect on an investment have been analysed in depth, it is equally important to
be aware of and understand the risks that could have an adverse impact on the
investment’s performance. Following are some of the risks that investors should
consider prior to investing in property:
1. Market Value Risk
This risk relates to the risk of the investment failing to achieve the expected growth.
Much of the information we have used in our analysis is predictive and the rate of
return may be affected by known and unknown risks and uncertainties. This in turn
could result in the re-sale value of the investment not achieving what is expected if the
vendor chooses to sell during or following depressed market activity.
2. Construction Risk
This is applied to properties purchased off the plan. Throughout such projects the
developer may arrange finance facilities related to the land acquisition, development
and construction of the project. This may result in issues arising in the delivery of the
product on time and as specified on the contracted terms. Delays in the delivery period
would result in opportunity costs as investors funds may not be able to be redirected to
alternative investments.
3. Rental Yields
Rental yields fluctuate and are affected by other market factors. They may go up or
down depending on factors such as supply, demand, employment, investment in the
area and the state of the overall residential market.
4. General Risk
In addition to the risk factors specific to investment in property development projects,
there are more general risks that can affect the value of the investment in the
development, including:
• The state of Australia’s and the world economies
• Movements in inflation and employment
• Changes in socio-economic factors
• Natural or man-made disasters.
5. Personal Risk
Investment strategies will often depend on the income of the investor. Should there be
a reduction or loss in the flow of income from the investor it may present a risk in the
future ability to hold the investment. These risks may be managed through the
appropriate use of income protection insurance, life insurance and trauma insurance.
6. Interest Rate Risk
Movements in interest rates can have a number of effects on an individual property
investment. Specifically, an increase in interest rates may have an immediate effect on
the costs of holding an investment property. Additionally, sustained interest rate rises
may have a lagging effect in the form of reduced sales activity and property growth.
CONFIDENTIAL | PAGE 29
Copyright 2009. Positive Real Estate Pty Ltd
All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its
accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.7. Policy Risk
Changes in government policy may affect both holding costs and the expected growth
performance of specific property investments. This may result in additional expenditure
in order to finance your portfolio and the expected returns.
8. Oversupply
An oversupply in property will have effects on both achievable rents and growth
performance. Due to the length of time typically required to construct medium and high
density developments, the short term supply curve is inelastic. This means that
property supply has an inherent inability to adjust quickly enough to meet demand. A
sudden reduction in demand or an unexpected increase in supply may result in
oversupply. Typically this risk is most acute towards the end of the property cycle. We
do not foresee any short term risk of oversupply in the current market.
9. Settlement Risk
Settlement risks may prevent the purchaser’s ability to settle on the property.
Typically, these are related to difficulties in obtaining finance through valuation
shortfalls at the time of settlement or changes in the purchaser’s personal
circumstances that result in the refusal of the purchaser’s credit application. This may
result in the loss of the deposit or any monies owed to the developer. This risk may be
managed by obtaining pre-approval of finance (for completed property) prior to
exchange of contracts.
CONFIDENTIAL | PAGE 30
Copyright 2009. Positive Real Estate Pty Ltd
All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its
accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.Appendix X| Glossary of Terms
Common terms used by property Investors and Financial Institutions
Application A fee paid by the borrower to the lending institution for obtaining
Fee finance.
Bridging A short term loan/facility that is often used when buying a new
Finance dwelling previous to settling an existing dwelling.
Body The term ‘Body Corporate’ refers to a home owners association
Corporate charged with the administration of one or more housing units.
Owners of the individual dwellings pay a fee to provide for
maintenance of common areas and provide cover for repairs that
may arise in the future.
Capital Growth The change in value of an investment. This is calculated by
subtracting the purchase price from the current value of the
investment and is usually expressed as a percentage. If the price of
the capital asset has declined instead, this is called a capital loss.
Comparison A rate used to compare the borrowing costs from competing lenders.
Rate The basis of comparison includes the interest rate and the majority
of fees and charges payable during the life of the loan. The figure is
expressed in percentage terms. It should be noted that some costs
including redraw fees or early repayment fees, and cost savings such
as fee waivers, are not included.
Deposit A substitute for a cash deposit used to purchase a property. At the
Guarantee time of settlement, the buyer is required to pay the full purchase
price.
Equity The net value of the asset. This is calculated as the value of the
property less any outstanding loans secured by the property.
Gross The complete amount before deductions for taxation, inflation, or
any other various fees that may be incurred. The term ‘gross return’
refers to the amount of capital growth and yield before taxation,
body corporate, fees, inflation and other expenses are taken into
account.
Infrastructure Basic facilities required for a community or society to function as an
economy, including transportation, communication, provision of
water and power and the public institutions needed for security,
welfare, health and education.
Interest in When interest is charged at the beginning of a period of time. For
Advance example, charging the first years interest in the first month of a
loan. It is generally only available on fixed rate loans for investment
purposes.
Interest Only A loan facility commonly used for investment loans where the
Loan borrower only pays the interest component of the loan for a specific
period of time.
Price $/m2 A measure for determining the relative value of a given property
based on the internal size. This is calculated by dividing the
purchase price by the internal area (measured in m2) and expressed
as dollars per m2.
CONFIDENTIAL | PAGE 31
Copyright 2009. Positive Real Estate Pty Ltd
All information contained in this report collated from third parties and provided in good faith. No representation is given or implied as to its
accuracy or its interpretation. All interested parties must rely on their own research before making any investment decision.You can also read
