The document discusses TapHomes' business model of purchasing single-family homes and renting them to tenants with an option to purchase. It highlights the favorable market opportunities in Jakarta's growing housing market and infrastructure investments. It outlines TapHomes' target customers, property selection process, proposed investment structure offering recurring income and capital appreciation, and financial simulations showing attractive returns. The document also discusses TapHomes' platform and success factors around deal sourcing, economies of scale, and local market expertise to capture property discounts and ensure resident satisfaction.
The document discusses TapHomes' business model of purchasing single-family homes and renting them to tenants with an option to purchase. It highlights the favorable market opportunities in Jakarta's growing housing market and infrastructure investments. It outlines TapHomes' target customers, property selection process, proposed investment structure offering recurring income and capital appreciation, and financial simulations showing attractive returns. The document also discusses TapHomes' platform and success factors around deal sourcing, economies of scale, and local market expertise to capture property discounts and ensure resident satisfaction.
The document discusses TapHomes' business model of purchasing single-family homes and renting them to tenants with an option to purchase. It highlights the favorable market opportunities in Jakarta's growing housing market and infrastructure investments. It outlines TapHomes' target customers, property selection process, proposed investment structure offering recurring income and capital appreciation, and financial simulations showing attractive returns. The document also discusses TapHomes' platform and success factors around deal sourcing, economies of scale, and local market expertise to capture property discounts and ensure resident satisfaction.
The document discusses TapHomes' business model of purchasing single-family homes and renting them to tenants with an option to purchase. It highlights the favorable market opportunities in Jakarta's growing housing market and infrastructure investments. It outlines TapHomes' target customers, property selection process, proposed investment structure offering recurring income and capital appreciation, and financial simulations showing attractive returns. The document also discusses TapHomes' platform and success factors around deal sourcing, economies of scale, and local market expertise to capture property discounts and ensure resident satisfaction.
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1
TapHomes Business Model
1. NEW HOME
3. TAPHOMES TENANT INVESTOR BUSINESS
General Listing
2. RESCUE
2 Highly Favourable Market Fundamentals: Single Family Home Rental Industry
Jakarta metropolis is forecasted to be the biggest
Jabodetabek metropolis in the world by 2030 (Euromonitor) Population Single Family Home Rental industry represents a $4OO Billion Dollar opportunity* 32 M People Industry is fragmented with no dominant player People Without Homes Single Family Rentals 16 M People
4M Homes
*Assumes average home price of $100,000
3 Highly Favourable Market Fundamentals: After a Downturn Housing Prices Usually Rally
4 Matching Prospective Customers and Properties Understanding our Customer Demographic
- Usia 30th up - Menikah - Penghasilan bulanan gabungan ~20jt - Cicilan 39% dari penghasilan bulanan gabungan - Rumah 2 lantai - Area: Depok, Tangerang, Bekasi - Rumah sebelum: Kontrak - Rumah baru sama dengan area rumah kontrak/ rumah keluarga
5 Matching Prospective Customers and Properties Property Selection Process
2. Assign Grades to Each
1. Break Jabodetabek into Zones 3. Inspect the Home Development
Each Development is given Our In House Appraiser
a A, B, C, D grade based on visits each house to check factors including: on its condition ● # of Developments ● Proximity to Main Roads and Toll Roads ● Distance to Public Transport, Toll Roads ● Facilities Proposed Structure: Convertible Bond
Structure Convertible Bond
Security List of Single Family Homes
Target IRR 20%
Target Net Yield 12%
Rent Payments 90% to Investor
10% to TapHomes
Capital Gain 80% to Investor
20% to TapHomes
7 Financial Simulation:
Scenario Description IRR
Baseline Tenant Rents for 36 Months 20%
Tenant Exercises Option
Worst Case Tenant Rents for 18 Months 9% to 12%
Property is vacant 18 Months Property sells at 55-60% of Market Price
Best Case Tenant Rents for 35 Months 25% to 29%
Property is vacant 1 Month Property sells at 70-80% of Market Price
8 Homes Purchased
9 Appendix
10 TapHomes: Membidik Kesempatan & Peluang
Highly Favorable Market Attractive Financial
Fundamentals Returns
● Peluang pasar yang cukup ● Recurring income for 3-5 years
besar - $200B - $400B ● IRR 15-20% annually ● Kurangnya pasokan hunian ● Turnkey Investment dengan harga terjangkau
Unique Platform Geared
Desirable Assets For Growth
● Homes chosen carefully ● Long-term rent to own contracts
based on several factors ● Tech based with eyes on the including proximity to public ground transport
11 1. Highly Favourable Market Fundamentals: Infrastructure Boom creates once in a lifetime opportunity
Jakarta has a plan to spend $40bn
over 10 years in an attempt to make the Indonesian capital a more liveable and efficient city
Property prices near the MRT
and LRT stops are forecasted to increase up to 20%
12 1. Highly Favourable Market Fundamentals Reasons to be Bullish
Housing Unaffordability Millennials remain out of the ownership markets due to unaffordability
Significant Undersupply Demographic Tailwinds
Affordable housing supply remains far The typical age range of residents is below historical equilibrium levels, 25 - 35 years old particularly in the single family category. This demographic will grow significantly providing a substantial demand tailwind
13 3. Desirable Assets: Locations are selected in Area Primed for Growth
Public Transportation Toll Roads
Limited Supply of Affordable
Housing
Established Neighborhood Reputable Schools
14 3. Desirable Assets Procuring Good Assets at Discounted Prices
PRIMARY Up to 50% cheaper than their primary
homes
Exist in established neighborhoods and
more likely to retain their value Achieve discounts with cash purchases Able to move right away
Agreements in place with developers
to capture quantity discounts
SECONDARY 15 4. Platform Built for Growth: Key Success Factors
Deal Sourcing Economies of Scale Eyes in Market
● Proprietary database of ● Focus on purchasing multiple ● 2 in-house investment deals from various channels homes in selected professionals in markets developments ● Pricing determined using ● 5 operations personnel across algorithm and in team ● Density drives service 10 local home pods appraiser efficiency and revenue management intel ● Local, in-house control of the resident experience
16 Financial Structure: Three Wall Defense
TapHomes Investments are defensive
instruments that preserve capital while providing good returns
First Wall: Investments are secured
by the rent collected during the 3-5 year rental period
Second Wall: In the event of a
customer default, TapHomes holds the customers equity
