Performance Property Funds are dedicated to helping sophisticated investors grow and diversify their portfolio through residential and commercial property funds.
When building a property portfolio, the majority of investors focus solely on residential property. The key issue with this is as you near retirement, the income is low – with residential houses in good quality areas typically yielding between 3% – 4% gross. Once you factor in annual running costs and a sinking fund for capital improvements, net incomes typically settle around 2%. Explained differently, if you had a residential property portfolio of $2m, the income after annual expenses would be approximately $40,000.
There are strategies to get higher income from residential property such as: regional unit blocks, duplexes, mining towns, rooming houses, student accommodation and disability accommodation. Each carries different yields & higher risk. Additionally, these strategies result in a meaningful time cost to the investor. For most high income, time poor investors these strategies are not suitable.
Our Funds management resolves this issue for our clients with the Performance Property Income and Opportunities Funds. More information about these funds can be found below.
PPA Fund Services Pty Ltd is a Corporate Authorised Representative (1302429) of Wholesale Funds Management Pty Ltd AFSL 487419 ABN 32 612 005 928