Blog Post | 12 Reasons to Invest in Echo Beach, South Australia

Blogger: Dan Johnson

Position: Director

Company: TheMoveChannel.com

Blog Synopsis

At the increasingly less tender age of 34, I may not be the oldest person in the property industry, but Ive bought properties in three different continents and have been running TheMoveChannel.com for the best part of a decade, so I know a thing or two! Im not shy of learning new things though, so join me as I travel the world, guide the business through the current economic storm and educate myself on the fundamentals of investing in property.

12 Reasons to Invest in Echo Beach, South Australia

By Dan Johnson

Tuesday, July 06, 2010

Echo Beach, Australia

1. Ownership of real estate
This is not a fund or a share scheme – investors will own an interest in unencumbered real estate.

2. Absolute beachfront position
Limited availability leads to higher long-term demand and higher gains for investors.

3. An area that already attracts tourists
Stunning beaches and great location between Adelaide and Melbourne on the popular great coast road.

4. Steady and sustained capital growth
Historical trends show a consistent growth of 10 to 15% per year in land prices in this area.

5. Land already has planning approval
Current planning approval is already in place for this site, for residential use.

6. Accelerated upside potential
Enhanced approval for this site to be used as a resort would increase ROI to between 500 and 1000 percent.

7. Vendor is sharing investor risk
The vendor will retain a 25% interest in Echo Beach, meaning he has a vested interest in the success of the venture.

8. Low entry price paid in sterling
Surprisingly affordable prices, ranging from £15,700 to £29,700.

9. Guaranteed minimum return
Investment return of 5% compounding on investors' entry price is guaranteed by Vendor's retained 25% share of the land!

10. Clearly defined exit strategy
If after 5 years resort approval is not obtained, Echo Beach will be sold as a whole, with the return of capital based on each investor's ownership interest.

11. No lockdown!
Investors are free to sell their interest in Echo Beach at any time.

12. Refinancing potential
If enhanced planning is approved every investor will have separate title to their allotment which can be refinanced to release capital.