Last week the City of Subiaco added to its property investment portfolio as part of its continuing efforts to minimise the rates implications on residents.
Council approved the purchase of the $6.4 million commercial property in Midland at its meeting on 21 May 2019, and settlement was completed late last week.
Mayor Penny Taylor said the City was investing in properties which provided a good financial return, as a way to achieve income to the City other than rates.
“All investments are carefully considered to ensure we are securing the best financial return, so that it makes the biggest difference to the long term financial sustainability of the City," Mayor Taylor said.
“Rather than money sitting in banks at a low rate of return, we’re purchasing property which gives us an income stream to fund capital improvements, the asset renewal and replacement program, and community based projects.
“This purchase will provide a steady and sustainable income for the City,” she said.
Purchasing income generating property assets is one of the ways the Local Government Act provides for local governments to invest capital funds, with the alternative being investing in banks.
“The property investments we’ve made on behalf of the community are serving our finances well, so we’re continuing to look for good opportunities,” said Mayor Taylor.
For more information about the City's budgeted property investments and capital works for the upcoming financial year, download the 2019-20 budget brochure.