June 1, 2009

“It’s money for jam” – deregulation opens up profitable ATM market to individuals & companies

The Reserve Bank’s March 2009 deregulation of the ATM market has opened the door in Australia for individuals and companies to enter the previously bank-dominated sector, earning 20% ROI annually and higher.

The legislative changes open the door to earn transaction fees like the banks each time your machine is used. Independent ATM owners now receive all the transaction income, previously shared with the card issuer.

The Australian Government’s Economic Stimulus Package, announced in its May 12 Budget, offers small businesses an additional incremental 50% tax allowance bonus, with 150% tax allowances with 70% in the first year alone (Australian residents only).

·         Minimum GUARANTEED 20% ROI p.a. and often much higher

·         150% tax benefit - over 70% in first year alone (not available to foreign buyers)

·         100% finance option (available from multiple major finance institutions, (subject to conditions and credit approval).

·         Low entry costs from AUS $6,600 (10% deposit) - paid back if taking 100% finance option

·         Hassle-free, complete turn-key solution, safe and secure

 Owning ATMs is a highly attractive opportunity for investors looking for a secure investment and ongoing revenue stream in a down economy. 

In his 10 May Daily Telegraph story covering the deregulation: ‘Why ATM operators love the charges you hate’, journalist John Rolfe wrote thatATMs in pubs and convenience stores will make so much money under the RBA's controversial new direct charging system that they will have paid themselves off and be pure profit machines in less than a year.

Senior Wilson HTM Investment research analyst Jacqueline Fernley concurs, saying "It's money for jam. The payback on an ATM machine at $2 per transaction when all else is equal is less than 12 months."

To request information materials, or for early June dates for a series of presentations around Australia, click here: http://tinyurl.com/Aust-ATM-Investment .  With the sector growing at 11% annually in the last decade, professional intermediaries including property managers, accountants, financial planners, taxation agents are recommending this opportunity to clients.  

Up to 3-5,000 ‘lobby model’ ATM machines are available, sold on a first-come, first-served basis in a completely passive investment opportunity - the ATM suppliers handle management, servicing, insurance, security, payment processing on your behalf.

Buyers are primarily purchasing existing machines in busy public locations, but the opportunity includes setting up new ATM locations, eg. hotel or retail precincts.  Foreigners can also buy into the investment, with New Zealand the next country market with high growth upside to come on-stream.

Tax allowances just announced in Australia’s May 12th Budget

 “Mr Speaker, small businesses are the backbone of the Australian economy, employing around half of all private sector workers.  That is why the Government will also provide immediate additional assistance by increasing the Small Business and General Business Tax Break to 50 per cent for eligible assets ordered between December 2008 and December 2009, in addition to assistance for small businesses to take advantage of e-business opportunities.” (http://www.budget.gov.au/2009-10/content/speech/html/speech.htm)

For information materials or presentation dates this week and next: http://tinyurl.com/Aust-ATM-Investment. 


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