Fiducia formula for success

How does the Fiducia regeneration model work?:  

  • Fiducia targets older-style apartment blocks in high-growth areas 
  • Blocks typically contain between 4 to 35 units
  • All blocks are within 20 km of the Sydney, Brisbane and Melbourne CBD
  • Blocks must be close to public transport, schools and other amenities
  • Blocks are low-rise in established suburbs
  • An investment report is developed for each project demonstrating demographics, features of the area chosen, vacancy rates and rental yield
  • Extensive market research is undertaken to establish areas that have high growth potential. Information is researched through a variety of sources including mainstream media, Residex, BIS Shrapnel and other sources
  • All properties are independently valued before purchase by a registered valuer. A full building inspection is also undertaken using qualified professionals
  • Renovation analysis is completed to ensure maximum benefit is achieved
  • Interior designer/colour consultant research property and produce colour scheme and story board
  • Fiducia sells the property to investors/owner occupiers in its un-renovated state, and then undertakes the complete regeneration of the exterior and interior using highly qualified professionals
  • The investor/owner occupier benefits from stamp duty savings and capital gains from the regeneration
  • If for investment, Fudicia can manage the rental of the property
  • The investor enters into the Regeneration Agreement with the builder directly – there is no developer profit built into the regeneration
  • If Fiducia has not sold all the apartments by the simultaneous settlement date, we are contractually required to purchase the remaining unsold apartments in the block. The onus is on Fiducia to ensure the property can be delivered to the market, at a price that will generate maximum returns to the investor.

 

What are the benefits?:

Fiducia regeneration enables you to take advantage of all of the benefits of renovating a property while removing the hassles and risk.

  • The benefit of renovating the exterior and interior of the entire building at the same time can produce Quick capital gains by maximising the cosmetic make-over of the property in a short space of time
  • Hassle free as we take care of the entire regeneration, ensuring the works are completed on time, to budget and to the highest standards
  • Enjoy stamp duty savings as the sale price is based on the unrenovated value
  • Combine the character of an older style property with modern aesthetics, enjoying features such as high ceilings and solid walls that many new buildings don’t provide
  • All improvements are depreciable and as such can assist in creating a tax effective investment strategy
  • Economies of scale enable us to negotiate greater discounts on fixtures, fittings and labour than would be possible for one person renovating one apartment
  • Re-sale value can be maximised as blocks are low-rise and located in established suburbs. Smaller blocks typically rent much faster than larger developments.