Property company LongView has announced a new investment opportunity for those targeting long-term capital growth but not wanting the costs, taxes or hassles of being a landlord.
The LongView Homes Investment Fund allows investors to tap into the major property markets of Sydney, Melbourne and Brisbane for a starting investment of $100,000.
Investors receive an opportunity to share in the capital growth of a diversified portfolio of family homes valued between $800,000 and $3 million across key metropolitan property markets.
According to Proptrack data released in 2023, it takes 15.4 years (185 months) for the median price of Australian houses to double, and 17.8 years (213 months) for units.
In cities such as Sydney, it only takes 9.6 years. This generated substantial wealth for many who bought family homes in these cities.
The LongView Homes Investment Fund aims to deliver results by doing what many Australians have done for themselves, but at scale.
Evan Thornley (pictured above), co-founder and executive chair of LongView, said the numbers tell the story.
He said, “On average, regional houses have doubled every 15 years, whereas capital city houses double every 11 years, and the top half (by performance) of capital city houses double every six and a half years.”
“One of the reasons property investors are drawn to capital city property is because – as the CoreLogic data shows us – the capital growth is higher. But those properties also have higher prices.
“Our fund invests in capital city properties, $800,000 to $3 million family homes with investors able to start with $100,000.”
Kerang farmer Melissa Van Der Drift said she chose to invest in the fund because the fund had given her the ability to “target big city capital growth”.
“I already have eight individual investment properties with LongView, but with this Fund, I no longer need to be the landlord,” she said.
The 54-year-old mother of four added, “My experience of LongView’s deep property history and knowledge was a big part of my decision. The fund targets properties that they refer to as RODWELLS (Robust Old Dwellings on Well Located Land), and I really like that”.
According to Thornley these older, suburban, family homes, with high “land content”, have been more likely to deliver capital growth above the house price index.
“The properties in our fund are carefully selected using LongView’s cutting-edge data science combined with professional buying expertise, aiming to select those properties which have a high potential for capital growth,” he said. “As a result of this careful property selection and the novel structure of investing alongside homeowners, we are targeting investor returns 70% above the house price index.”
Semi-retired small business owner Chris Edwardes has also invested in the LongView fund. He prefers to invest in property rather than shares.
“I’ve never lost money on property. Yes, there is risk, but over the 68 years I’ve lived, I know the key is to buy the right property,” Edwardes said.
Edwardes said going with the LongView team made sense.
“In my experience, to make a good return, it’s knowing what the difference is between good property and bad property. The fund means I don’t have to trust my gut, or research markets I don’t know.”
The Longview Homes Investment Fund is now open for a next round of capital raising after the funds raised earlier have already seen co-investment approved in 39 homes which are worth $74 million across Sydney, Melbourne, and Brisbane.
It also comes after LongView launched a similar Buying Boost model in February.
