International Property Solutions (IPS), together with the Montagu Property Group and the Macquarie Group, is offering South African investors the opportunity to buy property in the Broadwater region at the northern end of Australia’s Gold Coast.

The development — Coast Marine Parade — is scheduled for completion around March 2010 at a cost of A101m, and will consist of 150 one, two and three bedroom apartments. The one-bedroomed will sell for A395 000 and the two-bedroomed at A500 000.

Scott Picken, IPS CEO, says: “The Montagu Property Group is a diversified property company specialising in several industry disciplines, including property sales and marketing, construction, residential and commercial property development, and has more than 30 years experience in SA, with a focus on golf estates. Macquarie Real Estate Equity Funds is the developer, and this series of wholesale development funds is managed by the Macquarie Group.”

IPS and Montagu offer a comprehensive solution for investors.

“We facilitate the mortgage broker and property financing, legal issues, finding a tenant, and ongoing rental collections. In our Australian offering we have brought on board Network Migration, which advises on immigration matters.”

Network Migration Services has operated from SA for more than 17 years and offers extensive knowledge of regulations and requirements about applications for permanent residence and migration to New Zealand, Australia and Canada across all visa categories.

For the Coast Marine Parade development, bank financing would be up to 80% of the purchase price and deposit payments are structured so that a 5% deposit is required within four weeks of signing, a further 5% four months after this, and the final 10% deposit payment is due in February 2010.

Picken says that the entire purchase transaction is subject to approved finance.

“If no mortgage is granted the deal does not proceed and the potential buyer gets his money back. This differs to the UK system, where buyers are at risk of losing their deposits if their finance application is rejected.”

Kent Gush, marketing director for Montagu Property Group, says the Australian Gold Coast is a high growth region attracting new residents from both inside and outside Australia.

“Properties there are certainly cheaper than that in Sydney, Melbourne, Perth and Brisbane. Long term tenants for rentals in Coast Marine Parade would be those working in Brisbane or Surfers Paradise. But South African owners could rent out their property here on a short term holiday-let basis for a few months and occupy it themselves for the remaining time.

“This property is a great opportunity for South Africans to achieve a combination of capital growth and rental return in a foreign currency and in a market that has recorded consistent rental growth over the past two years.”

Gush says that research data shows that on the Gold Coast annual population growth has averaged at about 3,6% over the past decade.

“The property market here is undersupplied and the shortfall will support increased rental growth.”

Macquarie’s first South African project is developing the Eye of Africa in southern Johannesburg.

Gush says that South African investors are more than welcome to visit this development to see the high quality of construction and finishes associated with its offerings.

IPS, which has offices in SA, London, Dubai and Australia, and its partners, including Montagu and Real Estate INVESTOR magazine, will host information days in Pretoria on October 28, Johannesburg on October 29 and Cape Town on November 12, when interested buyers can get an overview of the market and can have all their questions and concerns addressed.

These information days will be followed by launches for the Australian Coast Marine Parade project.

Source: Business Day