Australian real estate innovation doubles residential property investor net returns whilst tackling housing affordability and retirement income concerns
Announcement posted by Assquire 11 Sep 2017
A new Australian real estate innovation is shaking up the investment and property industries, turning low residential net property yields for investors (and what was once a bleak retirement for many) into high yielding property investments and more choice for investors.
Developed in Australia and internationally patented, Assquire provides residential property investors with accelerated and higher residential property gross rents, on average 40% to 60% better than conventional gross rents over ten years, often doubling very low net rents. It can be used for both currently rented properties and for newly acquired properties.
Founder Keith Burchill says Assquire has been designed to combat the usual low net yields that residential property investors are accustomed to, as well as mitigate vacancy risk, property management risk and uncertain future capital growth.
“There is a long-standing myth that residential property investment is all about capital gain. That’s simply no longer the case,” said Mr Burchill. “Assquire is turning the relationship between property investment capital growth and yield on its head and proving that investors can be better off through higher contracted long-term yields.”
“With Australians simply not happy to work until they drop, Assquire is also about positioning retirees better for the future, tackling housing affordability and the deposit gap, and enabling investors and buyers to work together rather than compete against each other for properties,” said Mr Burchill.
Assquire benefits investors of any age, but the returns for semi-retired people and self-funded retirees are even greater than double in many instances. “We’re talking potential returns that are 131% higher than rental returns plus capital growth at an assumed 4.5% per annum average property price growth for the next ten years,” said Mr Burchill. (See Table 1, scenario 6 for detail and various other scenarios at different taxable incomes and settlement periods).
Assquire is aimed at investors who prefer stable and predictable high yields and long-term tenants of up to ten years, rather than relying on low yields now, a series of back to back short-term tenancies with possible rental gaps, and uncertain long-term capital growth.
To benefit from Assquire, investors can utilise an existing residential property or purchase a new property, but must have a minimum 30% equity in the property to potentially qualify. To gain the accelerated higher yields, and up to ten-year tenancies, an investor sells (with a settlement period of up to ten years) their investment property today to a pre-qualified home buyer at a pre-agreed set price. The deferred settlement produces the long term higher rental yields and the investor remains on title until settlement.
Buyers must occupy the property immediately and continue to occupy it until settlement with the investor, with the buyer’s interest secured by a registered lease and other security until settlement. In return for the long settlement and a very reasonable pre-agreed ten-year price, investors receive accelerated higher monthly rents, plus monthly deposit payments from the buyer.
For example, a Queensland investor employed on a good income and selling and leasing their $500,000 investment property could be on average $210 - $257 per week better off (in today’s dollars and after tax) during their leasing period of up to ten years, compared to their landlord position today. (Results vary depending upon the taxable income of the investor. See Table 2 for detail).
“The benefits of Assquire are substantial for both the investor and the buyer. The investor has only one tenant for up to ten years, with no more vacancy periods. In addition, the tenant has a vested interest in keeping the property in good condition, so repairs and maintenance are often reduced.
“The accelerated cash flows enable the investor to buy more, or more valuable, investment properties or to utilise the funds for more pressing needs, rather than hoping for a good enough capital gain in the future. They can also reinvest the excess returns each month in their superannuation, which is simply not possible with an unrealised capital gain. So it’s the perfect way to future-proof your investment returns against possible down turns with higher, stable, contracted rents.”
Buyers don’t lose out, just because investors are gaining.
“This is a great community initiative as it assists buyers into their own homes sooner and more safely. Assquire investors in effect incubate credit worthy buyers into their new or established homes sooner, without any of the typical mortgage worries or upfront mortgage costs like mortgage insurance,” said Mr Burchill.
“Even without long term capital appreciation, a buyer’s monthly deposit payments and a purpose designed savings plan are the foundation stones to their embedded equity to assist them to settle with a mortgage at the end of their lease, should they choose to do so.”
For more information about Assquire, visit www.assquire.com.au
Developed in Australia and internationally patented, Assquire provides residential property investors with accelerated and higher residential property gross rents, on average 40% to 60% better than conventional gross rents over ten years, often doubling very low net rents. It can be used for both currently rented properties and for newly acquired properties.
Founder Keith Burchill says Assquire has been designed to combat the usual low net yields that residential property investors are accustomed to, as well as mitigate vacancy risk, property management risk and uncertain future capital growth.
“There is a long-standing myth that residential property investment is all about capital gain. That’s simply no longer the case,” said Mr Burchill. “Assquire is turning the relationship between property investment capital growth and yield on its head and proving that investors can be better off through higher contracted long-term yields.”
“With Australians simply not happy to work until they drop, Assquire is also about positioning retirees better for the future, tackling housing affordability and the deposit gap, and enabling investors and buyers to work together rather than compete against each other for properties,” said Mr Burchill.
Assquire benefits investors of any age, but the returns for semi-retired people and self-funded retirees are even greater than double in many instances. “We’re talking potential returns that are 131% higher than rental returns plus capital growth at an assumed 4.5% per annum average property price growth for the next ten years,” said Mr Burchill. (See Table 1, scenario 6 for detail and various other scenarios at different taxable incomes and settlement periods).
Assquire is aimed at investors who prefer stable and predictable high yields and long-term tenants of up to ten years, rather than relying on low yields now, a series of back to back short-term tenancies with possible rental gaps, and uncertain long-term capital growth.
To benefit from Assquire, investors can utilise an existing residential property or purchase a new property, but must have a minimum 30% equity in the property to potentially qualify. To gain the accelerated higher yields, and up to ten-year tenancies, an investor sells (with a settlement period of up to ten years) their investment property today to a pre-qualified home buyer at a pre-agreed set price. The deferred settlement produces the long term higher rental yields and the investor remains on title until settlement.
Buyers must occupy the property immediately and continue to occupy it until settlement with the investor, with the buyer’s interest secured by a registered lease and other security until settlement. In return for the long settlement and a very reasonable pre-agreed ten-year price, investors receive accelerated higher monthly rents, plus monthly deposit payments from the buyer.
For example, a Queensland investor employed on a good income and selling and leasing their $500,000 investment property could be on average $210 - $257 per week better off (in today’s dollars and after tax) during their leasing period of up to ten years, compared to their landlord position today. (Results vary depending upon the taxable income of the investor. See Table 2 for detail).
“The benefits of Assquire are substantial for both the investor and the buyer. The investor has only one tenant for up to ten years, with no more vacancy periods. In addition, the tenant has a vested interest in keeping the property in good condition, so repairs and maintenance are often reduced.
“The accelerated cash flows enable the investor to buy more, or more valuable, investment properties or to utilise the funds for more pressing needs, rather than hoping for a good enough capital gain in the future. They can also reinvest the excess returns each month in their superannuation, which is simply not possible with an unrealised capital gain. So it’s the perfect way to future-proof your investment returns against possible down turns with higher, stable, contracted rents.”
Buyers don’t lose out, just because investors are gaining.
“This is a great community initiative as it assists buyers into their own homes sooner and more safely. Assquire investors in effect incubate credit worthy buyers into their new or established homes sooner, without any of the typical mortgage worries or upfront mortgage costs like mortgage insurance,” said Mr Burchill.
“Even without long term capital appreciation, a buyer’s monthly deposit payments and a purpose designed savings plan are the foundation stones to their embedded equity to assist them to settle with a mortgage at the end of their lease, should they choose to do so.”
For more information about Assquire, visit www.assquire.com.au
About Assquire:
Assquire is a patented system that enables residential property investors to swap uncertain future capital growth and low net rents from tenants, with stable, accelerated, higher monthly cash flows today.
Haigslea Residential Limited (HRL) is the property investment and management group licensed (by Mortgage Alternative Pty Ltd) to deliver Assquire®. HRL is a licenced real estate agency in Queensland (Real Estate Licence No. 3995434).
Background information:
Visit www.assquire.com.au
Case studies of Assquire investors: www.assquire.com.au/casestudies
How buyers purchase from Assquire investors: www.assquire.com.au/for-ma-buyers
Case studies of buyers who purchase from Assquire investors www.assquire.com.au/macasestudies
Why this isn’t ‘rent to buy’ and a comparison of Assquire with ‘rent to buy’
Media Contact:
Margot Furlonger, Holy Mackerel Group, tel 0422 548 323 or margot@holymackerel.com.au