Australian investors have a new opportunity on their horizon as the Cornerstone International Property Fund, boasting an initial capital of $50 million, is unveiled.
This innovative fund aims to simplify and streamline access to the thriving US residential housing market, eliminating the complexities of international taxation and the need for establishing US entities for retail and wholesale investors in Australia.
The Cornerstone International Property Fund seeks to revolutionize investment opportunities, making it easier for individuals and families to access residential property in the United States with a minimum investment of just AU$50,000. The initial focus of the fund will be on single residential properties in four key states: Florida, Texas, Michigan, and Missouri. The strategy is straightforward – identifying suitable US properties, renovating or “flipping” them quickly, and then selling for a profit, with returns reinvested into the fund.
Founders and directors Lindsay Stewart and Michael Eagar designed the fund to simplify and address the complexities and challenges often associated with traditional property funds. Their vision is to provide a low-dollar-entry-point investment vehicle that offers diversification, reduced risk, and impressive returns for Australian investors, especially targeting those in the 30-55 age bracket seeking portfolio diversification.
Lindsay Stewart, co-founder and CEO, highlights the fund’s approach: “What we were looking to do is develop a simplified way of getting investors into the US market, without the complications of international taxation and entities, and with a lower dollar value entrance point. We spent an extensive amount of time setting up this fund to ensure it solves the risks and issues commonly associated with property funds. By taking care of the US tax implications and managing the complexities, we provide investors with a hassle-free investment opportunity.”
Michael Eagar, co-founder and an experienced figure in funds management and financial planning, adds, “We wanted to create a set-and-forget strategy for investors, where they can participate in the US property market for the long term and build their wealth without being burdened by interest rate risks or complicated tax procedures. We believe in providing investors with the opportunity to build substantial wealth over time, and this fund is designed to generate outstanding returns and capitalize on the lucrative US single-family housing market.”
The Cornerstone International Property Fund is set to redefine property investment by offering a level of diversification rarely seen in traditional property funds. Instead of relying on a handful of developments, the fund provides exposure to a wide range of properties, ensuring robust risk management. The unique structure of the fund also eliminates the need for investors to directly open US entities, making it a convenient and attractive investment option.
With a minimum lock-in period of 12 months, as specified in the Product Disclosure Statement, the fund encourages a long-term investment horizon of at least five years, allowing investors to benefit from potential growth and stability. Retail investors can enter the Cornerstone International Property Fund with a minimum investment of $50,000 AUD, while wholesale investors are also welcomed, providing a unique avenue for high-net-worth individuals to diversify their portfolios. Although the fund has been capped at $50 million to ensure efficient deployment of substantial funds, there is no maximum investment amount specified, subject to a financial advisor’s recommendation.
Lindsay Stewart, a renowned figure in the Australian property market with nearly two decades of experience, and the founder and global operations manager of Star Dynamic Property Investments, successfully expanded his investment activities to the US market over a decade ago, establishing Star Dynamic as the leading Australian-based company assisting investors in the US property market.
Michael Eagar, a director of Condor International Property Group, holds certifications as a Certified Financial Planner and Qualified Property Investment Adviser. With extensive experience in the financial services industry, Michael has assisted countless individuals, families, and business owners in achieving their financial and lifestyle goals, providing valuable insights into the needs and requirements of both investors and fund managers.
The launch of The Cornerstone International Property Fund marks a significant milestone in the Australian investment landscape, providing a groundbreaking avenue for retail and wholesale investors to participate in the thriving US property market. This innovative fund aims to offer investors a hassle-free, diversified, and rewarding investment opportunity in the US residential housing market.