Why purchase a property at Caves Beachside?

For the opportunity of a housing investment with attractive rental cashflow – Gross returns of 9.25%

• In an independent economic analysis undertaken by Bishop Collins, each beach house has the opportunity for rental returns in excess of those that could be ordinarily expected for a similarly priced residential property.

• The increased revenue is due to Caves Beachside Townhouses & Villas being zoned for occupancy as tourist and/ or residential property

• Additionally, BMT Quantity surveys have determined that significant depreciation allowance is available enabling tax benefits

Opportunity of Capital Growth

• Prime beach front land in Lake Macquarie is very scarce. This site offers the last beachfront opportunity in the region.

• Due to its proximity to Sydney, Central Coast, Newcastle and the Hunter Valley and the increased residential development in hinterland. Caves beach is a desirable location that is well placed for capital appreciation

• Integrated with 4.5 star hotel facilities on site

• No other competing, high standard, accommodation facilities in the area.

• With National Park and Public open space surrounding the site there will be no other development, therefore enhancing the exclusivity of your home.

Economic Analysis Overview

• Full modelling of the economics of the investment will show it out performs normal residential returns.

• The economic analysis is available on request.

Summary of Economic Analysis

• Villa & Land investment priced from $399,000

• With occupancy rate of 38% (based on existing accommodation occupancy rate)

• Will yield a gross income of $39,060 (9.25%)

• Current accommodation is very limited. Only 18 studio suites available and these are for couples only. The Townhouse & Villa development has been planned to fill the many family and conference market bookings which are now turned away.

• For example the hotel has 83 weddings booked over the next 12 months and will cater for at least 8,300 guests.

• Caves Beachside Hotel accommodation is limited to 18 couples, when you add to this the many other functions and conferences held throughout the year and you can see that there is huge scope for tourism rental.

Residential Comparison

Typical residential property does not have the significant depreciation opportunity that is available on a Townhouse & Villa property

• The Townhouses & Villas have significant depreciation available.

• This provides a huge tax benefit

Residential rental has lower income: For example;- A rental of $400 per week (which you may expect for a home) with 95% occupancy would only yield an annual gross rental income of $19,760 p.a.

This is  half the income that can be achieved under tourism income even taking into account a conservative tourism occupancy rate of 35%.

This document has been prepared for advertising and general information purposes only.

Any interested parties should undertake their own enquiries as to the accuracy of the information.