Following years of research and refinement, OpenCorp has now formally launched the Australian Residential Property Fund (ResiFund).
“Wholesale Investor” readers will be familiar with OpenCorp, with many investing in their highly successful Greenvale property fund in 2016 and having heard of the imminent launch of the new ResiFund, which is now open for investment.
ResiFund enables wholesale investors the opportunity to invest in small multi-tenancy properties, which are unavailable to most investors. It also provides for much greater diversification, a lower capital investment outlay and no requirement to take on personal debt, relative to them buying property themselves.
The ResiFund has already made acquisitions in Melbourne and Brisbane and those properties are anticipated to provide an approximate 20% initial increase in equity. Once fully leased these properties should provide much higher tax advantaged income returns than are available through traditional residential investment properties. Investors should also benefit from additional capital growth in the future.
Matthew Lewison (Director) said the timing for the launch was excellent. “We are initially buying into the Melbourne and Brisbane residential property markets where there is record population growth, very low vacancies (Melbourne at 1.6%) and rental growth averaging 1.5%. In addition, these markets have less competition with dwellings approvals declining. The combination of which makes it a great time for us to be both buying and leasing the particular types of properties we are securing”.
He said that while the general perception of the residential market had been flat, he indicated “If you are selective and really understand the opportunities which exist, very good returns can and are being secured and our initial investors are already benefitting from that”.
Open Corp are arguably Australia’s most qualified and successful residential investment group, having acquired over 1,000 properties in the last 10 years (with an average return of 10.8% p.a- unleveraged), are currently managing over 900 properties and have been the manager for 25 property funds and joint ventures.