Overview

All across the world, the corporate and leisure accommodation industries are moving towards serviced villas and apartments, particularly dual key apartments. Investors target to acquire quality strata titled villas and apartments in strategic locations such as Cascades. The investor gets a cash flow positive passive property investment that has a relatively low holding cost that they can afford to keep in order to ride the capital growth. Cascades is in a growth area on the Cairns Highlands (Atherton Tablelands) due to the rapid expansion of Cairns and surrounding area and the excellent tropical Mediterranean cooler climate of the highlands. Of course it should be noted that Cascades On The Lake villas and apartments are specifically designed where owners can also enjoy their villa or apartment on a long term or short term residency basis. When not being used as a residence by the owner excellent returns can be achieved by being part of the Bel Vista Cairns Highlands letting arrangement.

Cascades on the Lake Occupants Options

Owners / investors will have the flexibility of a number of options as to their property:

• Be a resident provided that it is not your principal place of residence – furnish it yourself or utilise the Cascades Furniture Pack in case you may wish to make it available for letting to Bel Vista Cairns Highlands at some future date 
• Manage the property on a furnished or unfurnished basis through another agent
• Elect to purchase a Cascades Furniture Pack and have your property managed by Bel Vista Cairns Highlands when you are not residing at your residence

Residence Description – Stylish by Design

Cascades On The Lake comprises 17 retreat villas and 8 resort apartments and have been specifically designed for the lifestyle investor who may desire to visit regularly or for extended stays and while not residing earn sound returns.

The stand alone retreat villas are architecturally designed and superbly fitted out to optimise both owners and guests pleasure.

As to the dual key resort apartments they have been designed with a three fold purpose:

• make  a guest feel at home while away from home
• large enough with all facilities for an owner to reside in for an extended period and still earn an income from the studio
•  optimise investment yield

The dual key two bedroom apartments allows for maximum flexibility – either to be used as a large two bedroom apartment or to be utilised as a one bedroom apartment and a studio. The apartments are stylish and elegant by design and finished to a high standard.

Each villa and apartment are fully furnished to enhance the quality and sophistication.

Bel Vista Cairns Highlands

Cascades On The Lake will be managed by Bel Vista Cairns Highlands, a management company exclusively incorporated for this purpose, and associated with the developer Cascades Vista Pty Ltd. Bel Vista Cairns Highlands will have a licence arrangement with the Bel Vista Resorts and Residences Group who will act as a central booking agency for a number of associated resorts and residences being specifically developed, including Bel Vista Hervey Bay, Bel Vista Cairns, Bel Vista Diamond Waters, and Bel Vista Mildura Marina.

Bel Vista Cairns Highlands will be contracting experienced onsite managers to ensure that those seeking to make their residence available to Bel Vista Cairns Highlands for letting can optimise their yield. Marketing and promotions will be undertaken directly by Bel Vista Cairns Highlands and through the central booking and marketing group Bel Vista Resorts and Residences.

The decision by Cascades Vista Pty Ltd to place Cascades into management by Bel Vista Cairns Highlands compared to other ‘named brands’ was based on such ‘named brands’ having a reputation in the market place of not allowing flexibility of residence use by owners and owners/ investors not being satisfied with their investment return. The Bel Vista Cairns Highlands target is to optimise yield to the owner/investor. The larger ‘named brands’ generally have to amortise substantial overhead costs which lowers investor yields compared to that of Bel Vista Cairns Highlands and the Bel Vista Resorts and Residences Group generally. Bel Vista Cairns Highlands plans to position themselves between the large hotel groups with large hotel overheads and a heavy emphasis on marketing and the more traditional family owned management rights operator concentrating on low overheads with very limited marketing. Bel Vista Cairns Highlands plan for a carefully contained overhead allocation with a ‘sleek’ modern day internet and electronic marketing strategy. 

Fee Structure / Residence Letting Arrangement

The fee structure charged by management rights operators can be categorised into two broad approaches. The most common historically is the itemised approach where each cost component is assessed on an individual basis and charged back to the owner / investor of the residence.  The second being a fixed tariff share percentage (usually between 40% and 45% to the management company). The tariff share is more common with serviced apartments, and both the landlord and the operator get their fixed percentage of the tariff income irrespective of the occupancy.

Bel Vista Cairns Highlands will operate on a Tariff Share basis at 42.5%. This 42.5% is on the net rental paid after the wholesalers commission. 

The 42.5% covers the following for the operator:

• The traditional 12.5% management fee for holiday letting
•  Service and house keeping costs
• All marketing costs
• General day to day operating repairs and maintenance of the villas and apartments  

In this manner Bel Vista Cairns Highlands as the operator has every incentive to optimise returns as their return is directly correlated with the owner / investors return.

Note : This development enjoys an exemption from the Serviced Strata Scheme under the Managed Investments Act. Full details of this will be outlined in the Cascades Contract and Disclosure Documents.

Owners Right to Sell

As the residence owner, you are free to sell your property at any time (unless you have entered into some arrangement with a separate agent or party which precludes a sale).