A better way to invest in residential real estate
Enjoy the returns of residential property without the stress of being a landlord by investing alongside owner-occupiers
Strong
returnsii
Access a property growth linked return from a diversified portfolio of vetted Australian residential real estate assets.
Reduced outgoingsiii
Enjoy investing in property without all the usual taxes, letting fees, maintenance and mortgage costs.
Socially responsible
More than property growth, you’re investing in essential workers, so they can own a home close to work.
A new kind of ownership partnership
We co-invest with essential workers to help make home ownership more attainable and affordable. Together we share the investment and the profits.
Fund Performance
(Since Inception)
| Portfolio Return | Dec 2023 |
|---|---|
| Property Assets IRR (A) | 11.4% p.a. |
| Fund Return | Dec 2023 |
|---|---|
| Gross Fund IRR (B) | 10.0% p.a. |
| Net Fund IRR (C) | 7.7% p.a. |
| Net at Scale Fund IRR (D) | 10.8% p.a. |
| Social Return | Dec 2023 |
|---|---|
| Social Return (E) | 6.3% p.a. |
Please see Fine Print at the bottom of this page for footnotes, A, B, C and E.
Past performance is not a reliable indicator of future performance.
(D) In a scenario where the Fund's assets under management scales to $100 million, a net IRR of approximately 10.8% may be achieved through economies of scale where fixed compliance and administration costs are shared across a larger pool of investment, assuming similar portfolio underlying asset growth.
Measurable Impact
HOPE’s social impact is measured using established models and actual homeowner data. Our impact reporting focuses on the effect homeownership has on several critical areas, including:
- Enhancing physical and mental wellbing.
- Reducing commute times and increasing family time.
- Improving workplace productivity.
- Retaining trained esstential workers.
- Making the cost of housing more affordable.
Rated as Investment Grade
“Evergreen’s independent analysis highlights HOPE’s robust asset valuation solution, strategic asset selection process, and the notable social impact it creates”
Angela Ashton
Founder and Director
Evergreen Consultants
Our Investor Partners
Our partners include Super Funds, Family Office Investors and philanthropic organisations. HOPE investors are looking to make a meaningful impact and achieve a measurable social return. Investment in the HOPE Fund aims to deliver a commercial return and solid impact underpinned by Australian real estate assets.
I am a potential investor, keep me updated!
Subscribe to our Investor Newsletter ‘Insights from the Frontline’ using the form below
"*" indicates required fields
AS SEEN ON
Learn more about HOPE's social impact
We’ve improved our impact reporting in collaboration with Think Impact advisors. Quantifying the monetary value of our social impact not only empowers us to make better decisions but also enables us to maximise outcomes for Essential Workers and our communities.
Frequently Asked Questions
How are returns generated for investors?
Capital growth in the properties in the portfolio. These are realised and distributed to investors under three scenarios:
- Full sale of the property
- When the homeowner buys out part or all of the HOPE Fund share. In this case the price they pay for a greater equity stake will be determined by the market price of the property, at the time of the transaction.
- Partial or full refinance of the property, as determined by the market price of the property, at the time of the transaction.
What drives HOPE Fund's target return of 10% per annum?
Long-term growth in the Australian property market has averaged around 8 – 9% every year according to Oxford Economics Sydney House Price Index. HOPE believes it can achieve an out-performance of this long-term average of 2 – 3%, based on superior asset selection, pre-purchase due diligence with property experts and valuers, weighting the properties added to the portfolio towards high-growth areas and regions and excluding new builds.
HOPE’s Fund target return of 10% p.a. is net of fees and expenses, before tax. #
What are the returns projected to be and given your non-profit status how will returns be distributed?
We are targeting 10 per cent per annum (net of management fees and other fund expenses, before tax). The HOPE corporate entity is not for profit meaning that management fees will be charged on a cost recovery basis. The HOPE Fund itself will aim to realise a competitive and commercial return to investors distributed on a quarterly basis.
How is HOPE funded?
Funded by private philanthropic investment, HOPE is a Not for Profit entity. Hope Fund is an unregistered managed investment scheme and is now open to wholesale investors.
What properties will be eligible: strata units, freehold dwellings, new builds, old builds?
HOPE will provide capital for all types of housing except for off the plan developments. HOPE conducts full pre-purchase due diligence on all assets, including an onsite valuation, which sets the purchase price limit for our co-investment.
Does the Homeowner pick up expenses like rates, utilities, strata fees and property insurances?
The homeowner and the HOPE Fund are not tenants in common. The homeowner is on title as sole owner of the property. As owner of the property they are responsible for all the normal outgoings: rates, utilities, strata fees and property maintenance and insurances.
How does the HOPE Fund measure its social impact return?
The Centre for Social Impact at UNSW has helped us to develop a system to measure the social impact our new housing solution will have on individuals, employers and our communities. Enabling essential workers to live close to their place of work reduces travel time and improves work/life balance and physical and mental health. This in turn increases work productivity and decreases absenteeism. It’s all about strengthening our communities. You can read more about our first social impact returns here.
Who can invest in HOPE Fund?
HOPE has accepted investments from a number of individuals and organisations, ranging from $100K to over $5m. This includes well known foundations like the Vincent Fairfax Family Foundation and Private Ancillary Funds like The Paramor Family Foundation. The HOPE Fund is open to any Australian based investor who meets the Wholesale or Sophisticated investor definition.
The Corporations Act 2001 defines a Wholesale and/or Sophisticated Investor as a type of investor who is deemed to have sufficient investing experience and knowledge to weigh the risks and merits of an investment opportunity.
Net worth and income restrictions must be met before a person can be classified a Sophisticated Investor. The distinction makes an investor eligible as a Wholesale and/or Sophisticated client.
Typically, a Sophisticated Investor in Australia must meet one of the following requirements:
1. Has net assets of more than A$2,500,000
2. Has income of at least A$250,000 per annum over the last two financial years
3. Is investing $500,000 or more into the opportunity
Any party investing less than $500,000 will be required to provide proof of the above by providing a certificate from a qualified accountant. Examples of certificates are shown here.
HOPE feels like a demand side solution - don't we need more supply?
Australia needs more supply, as well as new models of financing home ownership that make existing and new supply more affordable. That’s because new supply on its own doesn’t correlate directly with affordability. If you’re interested in exploring the supply and price dynamic, head here.
We hope that shared equity becomes a financing tool that enables more Australians to achieve home ownership sooner, enabling a more secure future and retirement outlook.
Do solutions like HOPE just push prices up for everyone?
Quite the opposite. As part of the due diligence on every asset an essential worker is looking to buy, HOPE, through its partnership with property valuer Opteon, sets a limit on the purchase price for every property.
Homeowners must stick to this budget, which ensures properties enter the portfolio at the best price possible. This budget process does mean homeowners sometimes miss out, as HOPE will not allow bidding beyond the set budget.
To date 78% of properties that have entered the portfolio have been purchased below the pre-purchase valuation, with the remainder at the budget limit.
THE FINE PRINT
(i) HOPE refers to HOPE Housing Fund Management Limited.
(ii) HOPE offers an investment opportunity for sophisticated investors to access the Australian residential real estate market which has had 40+ years of historical growth rate of 7.89% according to BIS Oxford Economic property index. The HOPE Fund’s return may not correlate to the historical returns of the Australian residential real estate market.
(iii) An investment in HOPE Fund gets you access to a diversified portfolio of residential real estate. Homeowners are on title and required to maintain the home and all pay costs. HOPE has priority on all properties within the portfolio.
Past performance is not a reliable indicator of future performance.
(A) The Property Asset IRR of 11.4% p.a. refers to the IRR generated by the Fund’s property asset holdings since inception.
(B) The Gross Fund IRR of 10% p.a. represents current Fund $14.2 million Net Asset Value’s annualised performance since inception before fees and expenses and tax.
(C) The Net Fund IRR of 7.7% p.a. represents the current Fund $14.2 million Net Asset Value’s actual annualised performance since inception net of fees and expenses but before tax.
(D) In a scenario where the Fund’s assets under management scales to $100 million, a net IRR of approximately 10.8% may be achieved through economies of scale where fixed compliance and administration costs are shared across a larger pool of investment, assuming similar portfolio underlying asset growth.
(E) Fund’s “social return” is quantified using a Think Impact’s social value modelling methodology.
~Evergreen Rating: ©Evergreen 2023. All Rights Reserved. (ABN 91 643 905 257) (‘Evergreen Ratings’) is Authorised Representative 001283552 of Evergreen Fund Managers Pty Ltd trading as Evergreen Consultants (ABN 75 602 703 202, AFSL 486275). The group of companies is known as ‘Evergreen’. Evergreen is authorised to provide general advice to wholesale clients only. Any advice provided is general advice only and does not consider the objectives, financial situation or particular needs of any particular person. It is not a recommendation to purchase, redeem or sell any particular product. Before making an investment decision the reader must read the relevant product offer document, consider their own financial circumstances or seek personal financial advice on its appropriateness for them.
