Investment FAQs
- Where are the Forte properties located?
- Management rights, Caretaking agreement and Pindan Realty
- Forte Hospitality Pty Ltd
- Can self managed super funds purchase these apartments?
- What do Strata fees cover?
- When can I use my apartment and would this affect my income?
- What facilities will the property have?
- Is my unit a freehold strata unit?
- What sort of returns do I expect?
- Can I sell my apartment at any time?
- Who is responsible for our apartments refurbishments?
- What will Forte give to my investment?
- What sort of capital growth will I get?
- What are the taxation benefits?
- How do I become a member of the strata company?
- What are all the charges?
- Booking rotation
Where are Forte Properties Located?
Cape View Apartments
Cape View is located right on the beach of Geographe Bay in Busselton. It boasts apartments that are not more then 50 meters from the ocean and has just added beautiful self contained bungalows that offer guests there own private car port and backyard entertaining with all the modern comforts of home and a few extras added.
Leeuwin Apartments
Found right in the heart of the Margaret River wine region, Leeuwin Apartments boasts beautiful apartment and townhouse accommodation with all the facilities you would need to help relax & unwind. This is a perfect location to begin a tour of the region and explore not only the vineyards but all the other sites the region is famous for.
Mandurah Quay Resort
The Resort and Marina sit on 155sq kilometres of protected inland waterways. It is surrounded by unspoiled bird and kangaroo conservation areas with walking trails.
The fully self contained spa apartments offer spacious accommodation whether it be for a corporate business person or a family of 6. It is close by a natural reserve which offer great tracks to explore. All the apartments overlook either the 22 meter free form swimming pool or one of the 2 full sized tennis courts offered to our guests.The ambience of the Waterside Restaurant allows guests to relax outdoors or inside, while gazing at the beautiful peel inlet. Cuisine is the focus of this restaurant and our staff look forward to creating a memorable experience.
Management Rights, Caretaking Agreement & Pindan Realty
When you purchase a property from one of Pindans short term accommodation properties you have the option to lease your investment through Pindan Realty.
Pindan realty Charges 16.5% management fee of revenue received. This fee covers the cost of the management and reception staff and the accommodation costs of the managers residence. All other expenses such as cleaning costs, marketing, and Foxtel are reimbursed back to Pindan and paid for by the owners of the apartments.
Pindan Realty acts as the Strata Manager for the site and its duties are to manage the strata company. It calculates strata levies based on the costs of maintaining the common property of the strata. Pindan realty also acts as the caretaker for the property. The strata property pay the caretaker an annual fee to maintain the common property.
Forte Hospitality Pty Ltd
Forte Hospitality is responsible to Pindan Realty to let out the properties on behalf of the owners. Forte Hospitality put together and implement marketing strategies, budgets and forecasts on an annual basis. This ensures that all owners have a thorough knowledge of where the marketing levy is used and what we are aiming to achieve financially for the year. On top of this Forte produce monthly owners reports which up dates the owner on facts and figures of the property and what marketing strategies have been implemented during the month. Included with this is a maintenance report that allows each particular owner to know when something has been broken, replaced or required for their apartment. Pindan Realty include statements with all details on income & expenses for the individual owners.
Can Self managed super funds purchase these apartments?
Yes. The estimated return, capital gain potential and on-site management make a an attractive investment for super funds. If you invest in using your personal superannuation fund, then you will need to discuss the provisions of the Superannuation Act with your accountant.
What do Strata fees cover?
Public Liability in all common areas, strata management fees, structural insurance, water and electricity in common areas, fire services, window cleaners, caretakers wages, staffing and accommodation.
When can I use my apartment and would this affect my income?
In a Forte property you are able to use your apartment at any time (Unless it is already booked out.) As an owner you are able to stay in it up to 3 months of the year. There is a minimum cost of $11 per night as part of the cost of onsite management and administration fee.
What facilities will the property have?
At present Cape View offers bike hire, bbq facilities, childrens playground and FOXTEL. When Stage 3 is completed, the property will boast an indoor and out door swimming pool and childrens recreation centre and gymnasium.
Leeuwin boasts a beautiful swimming pool, fully equipped gym, outdoor Jacuzzis and sauna. A modern childrens playground and a ½ tennis court.
Mandurah Quay Resort offers fully self contained spa villas, with Foxtel, an award winning free form swimming pool, gymnaisium, 2 full size tennis courts, bike hire and a function centre & the Waterside Restaurant.
Is my unit a freehold strata unit?
Yes. The prices of the resort apartments plus the furniture package are obtainable by contacting: Kym Bunting. After settlement has been achieved, investors will own a freehold strata-titled apartment in one of the state's premier tourist developments.
What sort of returns do I expect?
The investors total income will depending on occupancy and owner stay. As the revenue is not pooled it means that all the revenue that goes into your apartment goes to you minus expenses.
Can I sell my apartment at any time?
Yes, like any investment property you can sell your apartment at any time. If you sell your apartment, you must inform the management of this preferably prior to sale to ensure that the new owners are given a contract to review.
Who is responsible for our apartments refurbishments?
All refurbishments are the responsibility of the owner. The onsite management will update you on any areas of your property that need upgrading at the time and refurbishment must be of an acceptable standard to maintain the properties 4.5 star rating from the AAA. The rest is your choice.
What will Forte give to my investment?
With the Forte brand you can be assured of professional and friendly service given to all our guests. With Tourism Council of Australia Accreditations and Western Australian tourism award wining properties, and AAA rating you know that it is in our interest to ensure that every guest is looked after. Forte means “Strength” and with over 25 years of hospitality experience behind the company and thorough recruitment of our team you know that your property is in excellent hands with strong focused and energetic managers who take personal ownership of each property to the highest standards of guest satisfaction to ensure the best possible income that can be achieved.
What sort of Capital growth will I get?
When Forte properties are at a completion stage your asset would have already increased in value. However Capital growth should be seen as a long term investment. If this is done, increases in value will be seen because real capital growth has already occurred over the past 2 years, with huge increases in property prices in these area. This is a great option to form part of an overall strategy in planning for the future as well as giving you and your family a great holiday in the meantime at very little cost to yourself.
What are the taxation benefits?
- Capital allowance deductions
- Assessable income
- Capital allowance deductions on plant and equipment eg: Furniture, furnishings,fittings & equipment
- Negative gearing
- Capital gains and losses
How do I become a member of the strata company?
As an owner you are automatically a member of the strata company which meets annually to discuss matters of interest and concerns. For more details on this process please contact: Kym Bunting.
What are all the Charges?
At the end of a month you will receive a month end report and a statement. On the statement there are a number of charges that you may not be aware of. Some of these are as follows.
Consumables
Consumables consist of soap, shampoo, conditioner, spa gel, coffee, tea, sugar, milk, toilet paper, tissues, washing powder, dishwashing liquid, dish cloths etc. The accommodation requires this in order to gain its 4 star plus status from AAA.
Linen
Linen is bed sheets, towels, hand towels, face cloths & tea towels. Forte properties get their linen from professional linen services to ensure the best quality cleanliness and crispness for our guests. This is charged out at what it costs for the property to hire it in.
Accounting
Forte property owners are given their own individual accounts where all income and expenditure can be seen clearly. Each trust account is annually audited by REBA (Real Estate Board of Australia ;) this ensures that each individual trust is handled correctly and professionally. A fee for this service is charged to the owner to ensure that their investment is run to the highest standard.
Commision Charges
Commissions are % revenue taken from sources such as Visitor Centres, PCO's, Websites, Travel agents and wholesalers. Commision varies from 10% to 25% and is payment for these businesses who send people to the properties. All commissions are tax deductible to owners.
Booking Rotation
Should owners wish to stay in their apartment this will limit the amount of revenue that the manager can place into an apartment. In Forte properties, income is not pooled. Therefore each individual owner receives income from their occupancy in their individual apartment. Forte properties have individual breakdown of revenue for each room so the manager can assess the occupancy level per apartment as fairly as possible. Should a return guest specifically ask for a specified room then the manager of the property will move a booking to suit the guest if that is possible.
Overview of how management rights work
Owner:- Automatic Member of Strata company
All Owners:- Sign a individual managers agreement and caretakers contract with Pindan Realty
Pindan Realty:- Appoints Forte Hospitality to manage the day to day running of the
accommodation
Pindan Realty:- Appoints a Strata Manager
