Investment
Options
An investor may invest either as an individual (Direct Mortgage), as part of a group of investors (Contributory Mortgage) or via a Nominee Mortgage.
Mortgage Investments
- DIRECT MORTGAGE – An individual invests in a single mortgage security. The investor’s name is registered on the title as mortgagee. Investors generally need to contribute a minimum of $100,000 to invest in a direct mortgage. Eastwood Securities identifies suitable loan opportunities and matches them with individual investors investment appetite.
- CONTRIBUTORY MORTGAGE – Multiple investors are able to contribute and join in with respective investment amounts to one mortgage security and all of their names are registered on the title as first mortgagees on the security property title.
- NOMINEE MORTGAGE – The Investment Manager is registered on the mortgage and signs a Trust Declaration that the mortgage is held on trust for the investor(s) named in the declaration. This form of mortgage is attractive where there are multiple investors or where the investor wishes to maintain their privacy.
- ROLLING OVER YOUR INVESTMENT – The mortgage term is often extended at its current interest rate. A Roll Over notice will be sent to the investor not less than 30 days before the maturity date. The investor can continue their mortgage investment at the interest income rate contained in that notice or elect to withdraw their investment at the original maturity date. A SPDS or Roll Over notice may be sent by email or mail to an investor.
Security Options
Mortgage securities are defined by the use of the underlying real-estate security. Different types of mortgage security may be priced differently with respect to interest rate return reflecting the perceived risk in making that mortgage investment.
- RESIDENTIAL SECURITY – Residential security is property used for domestic purposes. Loans made for business or investment purposes may also be secured by residential property.
- COMMERCIAL SECURITY – Commercial security includes offices, retail property, showrooms, warehouses and hotels or accommodation facilities and will have a commercial lease with an approved tenant or be occupied by the Borrower. These securities usually generate rental income to the Borrower which is matched against mortgage repayments over the term of the Loan without the Borrower having to reduce the outstanding Loan principal.
- INDUSTRIAL SECURITY – Industrial security includes factories which have a manufacturing or mechanical use or are used for industrial purposes. In some cases, these properties may have had a prior industrial use or may have had chemicals or petroleum products manufactured or stored on the premises creating an environmental issue. Any environmental considerations will be noted in the valuation and considered when pricing the Loan. Often, part of the funds advanced to the Borrower will be utilised to improve the value of the security property by removing the environmental issues.
- RURAL SECURITY – This security type is made up of properties outside the metropolitan areas. It may include coastal properties, farms, vineyards and standard residential properties in these areas.
Disclaimer
This information refers to investments facilitated by the Eastwood Securities Mortgage Fund ARSN 146 451 792. Any person seeking to make an investment should review the Product Disclosure Statement and seek legal, financial and taxation advice. The manager of the Fund is Eastwood Securities Pty Ltd ACN 143 030 540, a Corporate Authorised Representative (number 386369) of MSC Advisory Pty Ltd (ACN 607 459 441, AFSL 480649). The Responsible Entity and Trustee of the fund is Melbourne Securities Corporation Ltd ACN 160 326 545 AFSL 428289.
This website contains general information only and does not take into account any person’s objectives, financial situation or needs and accordingly does not constitute personal advice for the purposes of section 766B(3) of the Corporations Act 2001. For detailed information about the Fund, refer to the Fund Product Disclosure Statement available as a downloadable pdf from this website.
None of the Fund Manager, the Trustee, MSC Advisory or any of their officers, advisers, agents or associates guarantees in any way the performance of the Fund. The content of this website is current at the time of publication and may be amended or revoked by the Fund Manager at any time.
This product is not a bank deposit nor is it a pooled mortgage fund. An investment may achieve a lower than expected return and investors risk losing some or all of their principal investment. Past performance is no indication of future performance and actual returns will be particular to individual investments as described in transaction specific Supplementary Product Disclosure Statements.
