Investment manager eyes SMSFs with new property fund
An investment manager has launched a residential property fund aimed boosting the diversification, income and capital growth of SMSF portfolios.
Real estate investment company Opencorp has launched a residential investment property fund, called ResiFund, which will buy properties and rent on investors’ behalf, delivering regular distributions from rental income along with capital growth.
ResiFund will be focused on cash flow-positive property. A third of the funds will be invested in single-family homes and two-thirds in small and large “suitcase ready” multi-tenancy properties that will be rented out.
Investors will receive a monthly return every quarter, it said, and as market prices increase, the value of the investment will be reflected in the unit price, which is updated monthly.
The fund has an initial investment minimum of $1000, but the average amount invested is around $20,000.
ResiFund director Matthew Lewison said the fund enables investors and clients to take advantage of residential property growth and the stability of rental income.
Investing through the fund, he said, allows investors to own multiple properties they could not afford to acquire themselves, have diversification and remove the requirement to manage the investment themselves.
“We’re already seeing investments from retirees, SMSF investors, parents starting accounts for their children and young apprentices keen to enter the property market,” Mr Lewison said.
“Investors appreciate the fact that the new fund has low gearing, is focused on generating positive cash flow which puts money in their pockets and is able to create value over and above the market price movements through our buy–add value–hold strategy.”
