The Ingwersen and Lansdown Securities Limited Fund lends money to approved Borrowers for property development and commercial lending purposes. We offer Investors the opportunity to invest in these projects after we have conducted our satisfactory due diligence on the project and Borrower.
The Ingwersen and Lansdown Securities Limited Fund is a Contributory Mortgage Fund. Your investment monies are applied to one or more mortgage investments within this Fund. Investors receive a monthly Distribution payment at the rate outlines in the Investments Proposal(s) and subject to the Borrower meeting its loan requirements. Investment security is by way of registered first mortgage over real property.
For further information, please review the video below and contact our office. Our PDS and TMD are located here.
Watch our short video on
how Investing with us works…
Borrower projects include:
Residential construction
townhouses & duplexes
Residential multilevel
apartment buildings
Commercial &
industrial units
Land subdivisions
and land banks
Stand alone
commercial property
There are many good
reasons to consider a
First Mortgage Investment:
- Your rate of return is fixed during the term of each mortgage.
- Subject to available funds, you will receive a monthly Distribution payment deposited directly into your nominated bank account.
- Your funds are invested for a relatively short term (generally 12 to 18 months) which gives you flexibility and allows you to adjust your investments.
- We have extensive management experience in investing in Mortgage Investments.
- All costs associated with the establishment of a Mortgage Investment are paid by the Borrower.
A Mortgage Investment has the potential to provide regular income returns over a fixed term, without the taxation and administration difficulties of other types of property investments including some of the following difficulties:
- High up front costs
- Bad tenants
- Property maintenance
- Insurance
- Rates
- Capital gains tax
- Land tax
We consider First Mortgage Investments in Queensland, Victoria, New South Wales, ACT and Perth.
Interest rates and term of investment vary between investments and all information is available via our Investment Proposal (SPDS) for each individual investment and subject to investment performance.
We note that depending on demand some investments may not be available when requested.
Generally, $20,000 is the minimum initial investment. Any amount above this minimum will be readily accepted.
Where you invest $40,000 or more you may wish to consider whether to split your investment funds across a number of investments as part of your investment strategy.
*Up to 9.5% per annum – Investment rates vary according to each investment and are contained within the supplementary product disclosure statement (SPDS).
After considering the Product Disclosure Statement (PDS) and Target Market Determination (TMD), apply to become an investor by completing the application form which is available here.
The application form, once completed and signed by you, can be returned to us together with suitable identification and the Target Market Determination (TMD) Form.
Please call us anytime. We are willing to personally assist you to complete these details at our office or over the phone.
If you wish to receive a hard copy of the Product Disclosure Statement, you can contact us via email, post or telephone. Alternatively, you can download the Product disclosure statement here.
A first registered mortgage is a legal security over the title to the property registered at the relevant state land titles office.
This first mortgage entitles the fund to the first right of monies from any sale over the property. In this respect, a first mortgage security is the pinnacle security of property lending.
This security out ranks all other securities which means the debt owed to the Manager has priority over all other debts which may be owed by the Borrower, with the exception of: Statutory charges, rates, GST, foreign residents CGT withholding and land tax and if the security is a unit, body corporate levies.
All investments are subject to risk. Some of the risks associated with investing in the Fund include the borrower defaulting on their loan terms and the value of the Security Property declining. A first mortgage is not a guarantee of return of investment upon the sale of the property, as the sale proceeds are subject to market conditions. Investors should obtain and consider the PDS, including the risks outlined in the PDS, before making any investment decision.
The considerations our fund managers take are:
- We lend generally 66.6% or less of the value of the Security Property.
- A valuation of the security property is conducted by an accredited Valuer prior to a First Mortgage Investment being made.
- Approved Valuers who provide to us the valuation of the security property have current professional indemnity insurance.
- For construction loans we instruct a quantity surveyor to prepare an initial report and ongoing reports to determine amongst other things, the construction costings of the build and the works done to date before funds are released.
- We hold the position of registered first mortgage over the title to the Security Property which means the debt owed to the manager has priority over all other debts which may be owed by the Borrower with the exception of statutory charges, rates, GST, foreign CGT withholding and land tax and if the security is a unit, body corporate levies. We ensure rates and land tax and body corporate levies are paid up to the due date when we authorise any advance.
- A range of conveyancing searches are carried out on the Security Property to protect your investment.
- Each borrower undergoes a credit assessment report with Equifax (previously known as Veda Advantage).
- We have in place systems and personnel to properly monitor all loans should there be a default we can react quickly to protect Investors’ money.
- Each loan will have a detailed Supplementary Product Disclosure statement (SPDS) explaining the specific details of the mortgage investment offered.
An investment with ILSL is not a bank deposit. Past performance is not an indicator of future performance and there is a risk you may receive lower than expected returns. No person guarantees the repayment of any capital or the payment of any income from the Fund or the performance of the Fund generally. Investing monies in construction funding secured by first mortgages has its own inherent risks. These risks are detailed in the PDS and each Specific Product Disclosure Statement and TMD and other disclosures located here.
Yes, you may decide in which mortgage your money is invested. Also, if you choose to be a non-discretionary investor after reviewing the Investment Proposal, if you are not in favour of that particular investment/loan for whatever reason, you have fourteen (14) days to request that your funds not be placed on that loan.
Once you have invested in a particular mortgage the distribution rate is fixed for the term of that particular mortgage.
Whilst your investment is awaiting placement onto a loan, it is held in our National Australian Bank Scheme Account and you receive interest monthly, currently paid at a rate of 4% per annum. This rate varies from time to time and the up to date rate can be found here. For more information on distribution payments, please read the Product Disclosure Statement and SPDS of each investment.
A First Mortgage Investment is where the loan facility is secured by a first registered mortgage as described in the Investment Proposal. For further information, please review this video and contact our office.
As noted in PDS item 1.2, we are a member of Equifax Pty Ltd (formerly Veda Advantage) and each Borrower undergoes a credit assessment report with that organisation. We carefully monitor all loans so where there is a default, we can act quickly to protect the Fund’s investment.
Also included in item 3 of each Loan Investment Proposal is relevant information on Borrower’s Credit worthiness which will confirm:
- That a credit search has been conducted at the commencement of the loan.
- If our enquiries revealed any defaults, judgements, petitions, external administrations, court writs or bankruptcies listed against the Borrowers or Guarantors.
- That a full financial assessment of the Borrower, Guarantors and its related parties has not been undertaken.
As mentioned in the PDS Benchmark disclosures and as is specified in each loan’s Investment Proposal (i.e. Supplementary Product Disclosure Statement or ‘SPDS’) generally interest is capitalised within most of our loans and where the Mortgage Investment has the interest on the loan capitalised, this will be disclosed.
As noted in PDS item 2.4, where construction will be undertaken on the Security Property, all plans and specifications as well as building contracts are provided to an approved quantity surveyor or other appropriately qualified person who is instructed by us. The quantity surveyor costs the project to ensure that the Borrower has allowed proper development costs for the project. Once we are satisfied with the report from the quantity surveyor as to the cost to complete the project, we advance funds on a cost to complete basis. We have our quantity surveyor inspect the development at various stages of construction. The quantity surveyor certifies in writing the costs of completing the project from various stages of construction. We withhold from the Borrower the amount of the cost to complete the project as advised by our quantity surveyor.
Further PDS item 2.13 reconfirms that where a loan relates to property development or construction, loan funds, in most cases, are advanced progressively against ‘as is’ and ‘as if complete/on completion’ valuations provided a quantity surveyor (or other suitably qualified person) has assessed the cost of each stage of the project and the quantity surveyor (or other suitably qualified person) has confirmed each stage is complete. Appropriate loan funds will be withheld on a cost to complete basis as advised by the quantity surveyor (or other suitably qualified person) to complete the project with the existing builder or contractor.
To explain what happens when you place your monies with our Fund, firstly ASIC requires that all funds be paid to an Application Trust Account for clearing and once funds are confirmed as cleared, correctly identified & all paperwork requirements met then they are moved across to our Scheme Trust Account pending placement on a mortgage / loan investment.
As our Loans are predominantly Construction / Development finance they are drawn down progressively as works are completed & funding is required so it is difficult to provide an exact timeframe.
Please be assured that our team work hard each day to have funds invested onto loans as soon as possible instead of sitting in our Scheme Trust Account. We work through this account each morning and any time there is an investment opportunity for an Investor’s available funds then they shall promptly receive Investment Proposal (SPDS) correspondence from us.
When your investment monies are held in the Fund and yet to be placed on a Mortgage Investment you will be entitled to receive Distributions at the rate set out in our latest quarterly update for our Asset Portfolio.
As noted in Lending Principals Benchmark (6) of the PDS, Loans secured by a mortgage will generally be no more than 66.6% of the value of the secured property. For all registered first mortgages provided to Borrowers, the Manager will maintain the following maximum LVRs:
- Where the loan relates to property development – 70% on the basis of the latest ‘as if complete’ valuation; and
- In all other cases – 80% on the basis of the latest market valuation.
In most cases distributions are paid monthly in arrears. Payments are made via a Direct Transfer into a bank account of your choosing. Distribution rates and dates will be contained within the Supplementary Product Disclosure Statement (SPDS) of each investment and is subject to investment performance.
There are no entry or ongoing fees to your capital investment. All of the Fund’s costs associated with the establishment and management of the mortgage are paid by the Borrower.
As outlined in the Product Disclosure Statement (‘PDS’) under item 2.8 our main loan assessment criteria are:-
- The Borrower’s proposed arrangements to service and repay the loan;
- For all registered first mortgages provided to Borrowers, the Manager will maintain the following LVRs:
– Where the loan relates to property development – 70% on the basis of the latest ‘as if complete’ valuation (incl. GST); and
– In all other cases, 80% on the basis of the latest market valuations (incl. GST);
- Where the property is secured by a registered second mortgage, the relevant LVRs may be higher than that set out above, however, these loans will only be offered to Investors under an Investment Proposal which contains full disclosure of the risks associated with registered second mortgages;
- The loan secured by the mortgage will generally be no more than 66.6% of the value (incl. GST) of the Security Property as assessed by an approved valuer. We will clearly advise potential Investors in the Investment Proposal if it is proposed to exceed a LVR of 66.6%;
- The Borrower must give us a registered mortgage over the Security Property;
- The mortgage must be held over real property;
- The mortgage must be in our name;
- Valuations must not be dated earlier than three months prior to loan approval; and
- The Security Property must be insured against usual risks to its replacement value.
We insist on a Project Cashflow for each development and same is monitored / audited closely by the Quantity Surveyor engaged by the Fund and reported on (‘substantiated’) within each Progressive Claim Report they issue to us, prior to the release of any funds for each claim payment. These reports are completed each time the Builder / Contractor makes a claim for works completed which is generally monthly, but it can be as often as weekly.
Unlike consumer Home Loan lending that has comparison rates for fee inclusive amounts, there is only a gross interest rate for Borrowers (i.e. Interest rate payable by the Borrower) and for Investors (i.e. Distribution rate payable to Investors) unless they elect to have Assurance applied to their investments.
Should an Investor elect to have the ‘Assurance’ option applied (please see items 1.9, 1.10, 5.2, Glossary & Appendix 1 of the PDS for further information) the cost of Assurance is an amount equal to (on an annualised basis) 1% of the capital invested by an Investor in a particular Mortgage Investment.
For example, if the Distribution rate on a Mortgage Investment is 9% p.a. for the term of the Mortgage Investment, an Investor with Assurance would receive 8% p.a. (i.e. 1% less) in accordance with the terms and conditions set out in the Assurance agreement.
Each Loan has its own individual interest rate that has been negotiated between the Borrower and Directors prior to issuing a Letter of Offer (of Finance). Please see Lending Principals Benchmark (7) of the PDS for further information.
Please contact us to receive current available investment opportunities and likely returns on each investment.
While the PDS (item 4.5) notes the Distributions rate of 2.75% p.a. whilst your investment monies are held in the investment scheme account and not invested on a loan, this has since been updated to 4.0% p.a. These distributions will be paid at the end of each month.
This rate is updated quarterly and as required on our website at Statements and Policies.
Please refer to items 2.4 & 2.13 of the PDS for further details on the progress payments and funds being released on a ‘cost-to-complete’ basis as certified by the engaged Quantity Surveyor’s reporting.
Yes, please see items 1.14 & 1.15 of the PDS regarding the General Authority or Select Mortgage Investment types.
Call our experienced team to discuss your investment or borrower enquiries.
Established in 1999 Ingwersen & Lansdown’s Securities have a proven track record with over $2 Billion in mortgage loans settled.
