Meet Our New Member - CoVESTA
Company Name: CoVESTA
Member Rep Name: Daniel Noble, CEO
Member Since date: July 2017
What are your core business activities?
CoVESTA's core focus is to provide investors with an affordable way to access property investment. The CoVESTA platform provides investors with access to syndicated property investment that enables any investor can start or join a Syndicate on any available property, in any asset class, anywhere in Australia. CoVESTA provides the infrastructure, support and tools to empower investors at every step of the way. Our platform allows investors can choose exactly which property they would like to invest in, with the property being divided up into 100 investment blocks, the costs of investing in and owning the property are shared with other investors in the Syndicate. The Blocks give investors a beneficial interest in the underlying property.
Our core business focus are:
Improving access and lowering the barriers to direct investment in property
- Setup or join a Syndicate to acquire Blocks in ANY property available for purchase in Australia, either alongside an owner/investor or purely with other investors – you choose the property you want;
- Each Syndicate is separated into 100 Blocks, meaning you could for example obtain an interest in a $1million property of your choice with as little as little as $10,000 (plus fees and taxes);
- A way to co-invest with confidence as the property is held in a trust structure. One property one Trust, no co-mingling your investment with others.
Making property investment simpler and easier
- Avoid the need to arrange the property purchase and conveyancing - CoVESTA arranges all of these services for you;
- CoVESTA looks after management services for as long as the property is held, from finding tenants and collecting rent to coordinating bill payments and managing repairs and maintenance;
- While the property is tenanted, receive regular Distributions derived from the rental yield of the property (less property expenses) in respect of which the Member holds Blocks;
- Access online property market data, reports and educational material and join a community of like-minded people to share information and ideas through the Communication Facility;
- Have questions about the properties on the CoVESTA Platform answered by experienced investors and property experts;
- Access detailed annual financial reporting, as well as more frequent reports; and
- A simple and transparent fee structure
Providing a smarter way to invest
- The ability to achieve much greater diversification in your direct property portfolio much faster, by spreading your available funds and investing in a range of different property asset classes, including residential, commercial, industrial and new developments, in any location in Australia, through the CoVESTA Platform;
- Invest through your self managed super fund (SMSF) without the need for limited recourse loans. Many investors want direct property exposure in their SMSF, but don’t have sufficient funds to buy outright, meaning they often have to enter into complex and time consuming limited recourse loans. Now CoVESTA provides another, simpler and easier solution to obtain a diversified, direct property exposure within your SMSF.
Invest in a property where you want to live
- Existing renters who are trying to find a way into the property market can, through our Platform establish a Syndicate to acquire the property they are renting (if available for sale), or the property they would like to rent;
- Live where you want to, and obtain an investment exposure to the property market much faster than having to save a full deposit and finance to purchase a property outright;
- Receive an income stream from the investment and, if approved and subject to the term of the lease, maintain tenancy in the property for as long as it is held by the Syndicate.
What attracted you to the Property Council?
The Property Council is a strong voice within the property sector that we felt was well balanced between industry stability and achieving continuous innovation within the sector. As CoVESTA is a pioneering new investment platform we felt that the Property Council would allow us to develop a dialogue within the industry with incumbent operators, developers, investors and government that would truly assist us to achieve our mission to improve access and lowering the barriers to direct investment in the Australian property sector.
What are the issues of importance to your company that the Property Council can work with you on?
This is an issue that effects the growing millions of Australians who are becoming disillusioned and feel blocked out of ever be able to enter the property market. With CoVESTA we want to bring co-ownership into the national dialogue as a pathway to property investment and home ownership.
This issue is overlooked with discussion on housing affordability but the two topics are very much linked. As people are blocked out of the property market, this places higher demand on the rental sector which increase rental rate. This places aspiring investors and first time home buyers in the precarious position of having to pay high rents, reduces their savings capacity and only further reduces their ability to enter the property market. CoVESTA is the only fractional investment player that offers an invest and rent solution. With CoVESTA you can start and syndicate on a property you want to live in, invest a min of 5% or more of the purchase price, and then become the tenant for put to 5 years. This solution is a true pathway to home co-ownership. More than that, with CoVESTA we are the only scheme where you can invest your SMSF and occupy the property (conditions apply). We would like to bring invest and rent into the public domain and normalise it as a new pathway to property co-ownership.
What do you see as the biggest opportunity for the NSW property industry in the next 12 months?
Build to Rent schemes represent an amazing opportunity for both developers and the public. I think the governments position of potentially precluding MIT investment will have a huge negative impact on the sector that has untapped potential for social and economic good. Not being bound to the MIT scheme, CoVESTA has already commenced works in its first Build to Rent project with more information coming over the next few weeks.
What do you see as the biggest challenge for the NSW property industry in the next 12 months?
The Government is moving too slowly to keep up with what the market needs. The government needs to adopt a more innovative and adaptive approach and needs to develop a flexible framework in conjunction with the private sector to achieve real outcomes that will be meaningful for all stakeholders, investors, developers etc.
Domestic and International economic stability will be paramount for the property sector. We are seeing the impact of a strong softening of Chinese investors, which is yet to fully play out in our economy. The impact on of the plan is already being felt by developers, and is having a major impact on supply which bring us back to affordability across housing and rental.