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ALTON EDITION II 164 GOVERNMENT ROAD RICHLANDS QLD

NYKO PROJECT INFORMATION REPORT Important Information This report may incorporate information and research from third party sources. While every care has been taken to gather this information from sources Nyko Property deems reliable, Nyko Property makes no statements, representations or warranties and cannot guarantee its accuracy or completeness. The information in this report is given in summary form and does not purport to be complete. Interested persons should rely on their own enquiries with respect to all information in this report. Nyko Property cannot accept responsibility for any errors, including those caused by the negligence of third parties in the material. This report may contain assumptions and forward-looking statements including but not limited to statements regarding Nyko Property’s beliefs, current expectations with respect to the real property market conditions, demand for property and rental projections as at the date of this report. Readers are cautioned not to place undue reliance on these forward-looking statements. Forecasts and hypothetical examples are based on input values and assumptions contained in the example. These hypothetical examples are subject to uncertainty and contingencies outside Nyko Property’s control. Nyko Property does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. Before making any decision, Nyko Property recommends that you consult your own financial, investment and legal advice. To the fullest extent possible under the law, Nyko Property disclaims all liability for any loss or damage arising in connection with all of the information contained in this publication. February 2018


NYKO PROPERTY PROJECT INFORMATION REPORTS Nyko Property is a leading real property research advisory firm with a focus on quality investment properties. Our approach to our research methodology is that we identify key growth areas through in-depth research of the planning policies of state and local authorities together with market trends. In our opinion, our depth of research and independent reports should provide confidence that all recommendations are in the client’s best interests. All properties we source are brand new and include significant depreciation benefits and stamp duty savings that materially enhance the investment return. Nyko Property has enjoyed great success pairing quality property with educated purchasers. All research presented to our clients is supported by independent reports from leading valuers. The extensive research and referenced data produced in the Nyko Project Information Report is complimented by the 3 independent reports which confirm the most important factors when investing in property. 1) Fair Market value – with valuer general comparable sales 2) Rental Return Estimation – a current rental appraisal from an experienced local agent 3) Tax Benefits – with an accompanying indicative tax depreciation schedule


ALTON EDITION II NYKO PROJECT INFORMATION REPORT

SECTION 1. 2.

PROJECT SUMMARY CORELOGIC RP DATA SUBURB STATISTICS REPORT

THIRD PARTY VALIDATION Nyko Property’s Third

3.

FLOOR PLANS

Party Validation is made up of independent

4.

SPECIFICATIONS LIST

5.

INDICATIVE TAX DEPRECIATION SCHEDULE *

6.

RENTAL APPRAISALS *

reports from the experts in their fields to qualify the project for the three main investment factors:

7.

ASSOCIATED FEES

1. Value 2. Yield

8.

LOOKING AHEAD

9.

PROPERTY INVESTMENT CASH FLOW ANALYSIS

10.

VALUATION*

* THIRD PARTY VALIDATION REPORTS

3. Tax


PROJECT SUMMARY THE DEVELOPMENT Address

164 Government Road, Richlands QLD 4077

Type

Townhouses

Number of properties

58

Number for sale

3 (rolling availability)

Number of levels

2

Level access

Stairs

THE TOWNHOUSE Townhouse mix

4 bedrooms

FURTHER INFORMATION Local council

Brisbane City Council

Zoning (reference)

3 LMR3 Low-medium density residential (Up to 3 storeys)

Title (reference)

Strata Title (Owners Corp. Approx.

Heritage status

N/A

Deposit

10% payable by EFT or Cheque

Compound Annual Growth Rate (Units)

1.98%

Proposed rental yield

4.96% - 5.13%

Vacancy Rate

2.3%


PROXIMITIES * Distance from CBD

15.6km

Direction from CBD

South West

Neighbouring suburbs

Inala, Wacol, Forest Lake, Carole Park

TRANSPORT * Bus

500m to Bus Stop for Route 101 Forest Lake Shops – Oxley Station 2.3km to Richlands Train Station

SHOPS * Supermarkets & Shopping Centre

1.6km to Woolworths 6.7km to Forest Lake Village Shopping Centre (Coles and ALDI)

SCHOOLS * Childcare

750m to Jelly Bean Child Care Centre . 1.8km to Goodstart Early Learning Richlands 2.8km to Amani Family Day Care

Primary & Secondary

3.7km to Carole Park Primary School 3.8km to Glenala State High School 4.1km to Forest Lake State High School 5.5km to Our Lady of The Sacred Heart Catholic Primary School 7.0km to Oxley State School 9.8km to St Joseph's Catholic Primary School

Tertiary

13.5km to Griffith University, Nathan Campus 17.4km to The University of Queensland

MEDICAL * General Practitioners & Hospitals

*Referenced from Google Maps & DaftLogic.com

1.1km to Richlands Medical Centre 2.8km to Inala Medical Centre 3.6km to Durack Medical Centre 14.4km to Sunnybank Private Hospital 17.0km to Princess Alexandra Hospital 17.5km to Greenslopes Private Hospital


Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(03)98043343 Fax: +61(03)80805943 Email: catherinen@nykoproperty.com.au

Suburb Statistics Report

Prepared on 06 Mar 2018 Bill Nikolouzakis Mob: 0421731783 Email: info@nykoproperty.com.au

Š Copyright 2018 RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic), Local, State, and Commonwealth Governments. All rights reserved.

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(03)98043343 Fax: +61(03)80805943 Email: catherinen@nykoproperty.com.au

Area Profile The size of Richlands is approximately 5 square kilometres. It has 1 park covering nearly 1% of total area. The population of Richlands in 2006 was 828 people. By 2011 the population was 2,079 showing a population growth of 151.1% in the area during that time. The predominant age group in Richlands is 0-14 years. Households in Richlands are primarily couples with children and are likely to be repaying $1800 - $2400 per month on mortgage repayments. In general, people in Richlands work in a other occupation. In 2006, 65.3% of the homes in Richlands were owner-occupied compared with 43.8% in 2011. Currently the median sales price of houses in the area is $470,000.

Median Sales Price

Period January February March April May June July August September October November December

Year 2013 Median Price $338,500 $347,000 $347,000 $369,000 $369,000 $380,000 $384,500 $380,000 $380,000 $384,500 $389,625 $390,250

Year 2014 Median Price $390,250 $400,125 $400,125 $422,000 $390,000 $404,000 $408,000 $410,000 $413,000 $413,000 $408,000 $408,000

Year 2015 Median Price $405,500 $403,000 $403,000 $403,000 $410,000 $410,000 $411,500 $411,500 $415,000 $415,000 $431,000 $435,000

Year 2016 Median Price $435,000 $455,000 $455,000 $450,000 $460,500 $467,500 $470,000 $477,000 $467,500 $466,000 $455,000 $460,000

Year 2017 Median Price $469,000 $469,000 $469,500 $470,000 $469,500 $470,000 $470,000 $467,500 $470,000 $470,000 $470,000 n/a

Statistics are calculated over a rolling 12 month period

Š Copyright 2018 RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic), Local, State, and Commonwealth Governments. All rights reserved.

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(03)98043343 Fax: +61(03)80805943 Email: catherinen@nykoproperty.com.au

Median Sales Price

Median Sales Price vs Number Sold

© Copyright 2018 RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic), Local, State, and Commonwealth Governments. All rights reserved.

Page 3


Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(03)98043343 Fax: +61(03)80805943 Email: catherinen@nykoproperty.com.au

Recent Median Sale Prices Recent Median Sale Prices (House) Richlands Median Price

Period

Brisbane Median Price

November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017

$470,000 $470,000 $470,000 $467,500 $470,000 $470,000 $469,500

$670,000 $670,000 $670,000 $668,000 $666,000 $665,000 $663,000

April 2017 March 2017 February 2017 January 2017 December 2016

$470,000 $469,500 $469,000 $469,000 $460,000

$660,000 $660,000 $657,000 $655,000 $652,000 Statistics are calculated over a rolling 12 month period

Recent Median Sale Prices (House)

Š Copyright 2018 RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic), Local, State, and Commonwealth Governments. All rights reserved.

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(03)98043343 Fax: +61(03)80805943 Email: catherinen@nykoproperty.com.au

Recent Median Sale Prices (Unit) Richlands Median Price

Period

Brisbane Median Price

November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017

$362,900 $362,900 $363,900 $364,900 $364,900 $364,000 $364,000 $363,775 $363,650

$441,000 $442,000 $444,500 $445,000 $445,000 $445,600 $447,500 $449,000 $450,000

February 2017 January 2017 December 2016

$362,900 $363,525 $363,650

$450,000 $450,000 $450,000 Statistics are calculated over a rolling 12 month period

Recent Median Sale Prices (Unit)

Š Copyright 2018 RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic), Local, State, and Commonwealth Governments. All rights reserved.

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(03)98043343 Fax: +61(03)80805943 Email: catherinen@nykoproperty.com.au

Change in Median Price Change in Median Price (House) Richlands % Change

Period

Brisbane % Change

Nov 2017 Nov 2016 Nov 2015 Nov 2014 Nov 2013 Nov 2012 Nov 2011

3.3% 5.57% 5.64% 4.72% 0% 0% -0.74%

3.08% 5.01% 6.72% 7.41% 4.85% -0.48% -4.17%

Nov 2010 Nov 2009 Nov 2008

-4.45% 1.3% 1.32%

10.2% 0% 9.13% Statistics are calculated over a rolling 12 month period

Change in Median Price (House)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(03)98043343 Fax: +61(03)80805943 Email: catherinen@nykoproperty.com.au

Change in Median Price (Unit) Richlands % Change

Period

Brisbane % Change

Nov 2017 Nov 2016 Nov 2015 Nov 2014 Nov 2013 Nov 2012 Nov 2011 Nov 2010 Nov 2009

0% 4.01% -0.29% 3.83% 0.33% -0.77% -1.88% 6.48% 6.4%

-2.65% -1.52% 3.84% 5.48% 2.82% 0.73% -2.28% 6.55% -0.13%

Nov 2008

3.22%

8.33% Statistics are calculated over a rolling 12 month period

Change in Median Price (Unit)

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Page 7


Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(03)98043343 Fax: +61(03)80805943 Email: catherinen@nykoproperty.com.au

Change in Median Price (Land) Richlands % Change

Period

Brisbane % Change

Jul 2015 Jul 2014 Jul 2013 Jul 2012 Jul 2011 Jul 2010 Jul 2009 Jul 2008 Jul 2007

-0.78% 0% 0% 0% 0% -12.12% 0% 0% 0%

12.85% 8.02% 3.21% 7.05% -9.64% 11.27% -1.43% 11.6% 0%

Jul 2006

0%

0% Statistics are calculated over a rolling 12 month period

Change in Median Price (Land)

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Page 8


Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(03)98043343 Fax: +61(03)80805943 Email: catherinen@nykoproperty.com.au

Household Household Structure

Type Couples with Children Childless Couples Single Parents Other Lone Households Group Households

Percent 47.3 18.6 13.7 9.2 5.9 5.2 Statistics are provided by the Australian Bureau of Statistics (ABS)

Household Structure

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Page 9


Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(03)98043343 Fax: +61(03)80805943 Email: catherinen@nykoproperty.com.au

Household Occupancy

Type Renting Purchaser Owns Outright Other

Percent 53.7 26.8 17.0 2.4 Statistics are provided by the Australian Bureau of Statistics (ABS)

Household Occupancy

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Page 10


Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(03)98043343 Fax: +61(03)80805943 Email: catherinen@nykoproperty.com.au

Age Sex Ratio Age Sex Ratio Richlands Age Group

Male %

Brisbane Female %

Male %

Female %

0-14 15-24 25-34 35-44 45-54 55-64 65-74

11.7 8.1 8.7 6.8 6.2 3.8 1.8

11.3 10.4 9.4 7.4 7.0 3.1 2.0

9.2 7.7 8.5 7.5 6.4 5.0 2.9

8.7 7.6 8.3 7.7 6.6 5.2 3.1

75-84 85+

1.0 0.3

1.0 0.0

1.6 0.6

2.2 1.2

Statistics are provided by the Australian Bureau of Statistics (ABS)

Age Sex Ratio

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(03)98043343 Fax: +61(03)80805943 Email: catherinen@nykoproperty.com.au

Household Income Household Income

Income Range 0-15K 15-31K 31-52K 52-78K 78-130K 130-180K 180K+

Richlands % 4.0 10.0 16.6 21.6 24.2 7.6 3.8

Brisbane % 3.3 11.8 13.4 14.4 21.3 16.7 7.9

Statistics are provided by the Australian Bureau of Statistics (ABS)

Household Income

Š Copyright 2018 RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic), Local, State, and Commonwealth Governments. All rights reserved.

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(03)98043343 Fax: +61(03)80805943 Email: catherinen@nykoproperty.com.au

Disclaimer Whilst all reasonable effort is made to ensure the information in this publication is current, CoreLogic does not warrant the accuracy or completeness of the data and information contained in this publication and to the full extent not prohibited by law excludes all for any loss or damage arising in connection with the data and information contained in this publication. Based on or contains data provided by the State of Queensland (Department of Natural Resources and Mines) 2018. In consideration of the State permitting use of this data you acknowledge and agree that the State gives no warranty in relation to the data (including accuracy, reliability, completeness, currency or suitability) and accepts no liability (including without limitation, liability in negligence) for any loss, damage or costs (including consequential damage) relating to any use of the data. Data must not be used for direct marketing or be used in breach of the privacy laws.

Š Copyright 2018 RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic), Local, State, and Commonwealth Governments. All rights reserved.

Page 13


Master plan

66-A6

65-A7

118-A7 67-A5

68-A8

73-A7

74-A8

75-A7

76-A8

77-A7

78-A8

89-A7

90-A8

91-A7

92-A8

93-A7

94-A8

103-A7

104-A8

105-A7

106-A6

64-A8

116-A7

GOVERNMENT ROAD

63-A7

69-A1 62-A8

61-A7

60-A8

117-A8

70-A3

71-A4

115-A8

79-A1

88-A2

80-C3

87-C4

95-A1

102-A5

107-A1

114-A7

81-A7

86-A8

96-A7

101-A8

108-A7

113-A8

82-A8

85-A7

97-A8

100-A7

109-A8

112-A7

83-C2

84-C1

98-A5

99-A6

110-A5

72-A3

59 MANAGERS OFFICE

111-C1

N


GROUND FLOOR

LEVEL 1

BED 3

BED 2

DOUBLE GARAGE

WIR

BATH

HALLWAY

LIN /BR

PWDR

LDRY

ENSUITE

LIVING

KITCHEN

DINING

MASTER BED

BED 4

PERGOLA

Type A.1 Terrace - 69, 79, 95, 107 Ground Floor Area Terrace 69 Terrace 79 Terrace 95 Terrace 107

0

1m

83m² 83m² 83m² 83m²

First Floor Area 70m² 70m² 70m² 70m²

5m

Exclusive Use Area 25m² 26m² 21m² 36m²

Total Area 178m² 179m² 174m² 189m²

All dimensions and areas are preliminary only and are subject to change without notice. In addition, locations of utilities may vary during construction and all fittings and fixtures on these plans are for illustrative purposes only. All areas are generally measured in accordance with the Property Council of Australia method of measurement. Stair voids to the first floor are excluded from first floor areas. Extent of floor finishes may vary. Even though all reasonable care has been taken in the preparation of these floor plans, prospective purchasers must rely on their own enquiries and should refer to the Contract of Sale and its schedules to clarify all matters which are included in the purchase price.


GROUND FLOOR

LEVEL 1

BED 3

BED 4

DOUBLE GARAGE

WIR

LIN /BR

PWDR

LDRY

BATH

HALLWAY

ENSUITE

LIVING

KITCHEN

DINING

BED 2

MASTER BED

PERGOLA

Type A.2 Terrace - 88 Ground Floor Area Terrace 88

0

1m

83m²

First Floor Area 70m²

5m

Exclusive Use Area 27m²

Total Area 180m²

All dimensions and areas are preliminary only and are subject to change without notice. In addition, locations of utilities may vary during construction and all fittings and fixtures on these plans are for illustrative purposes only. All areas are generally measured in accordance with the Property Council of Australia method of measurement. Stair voids to the first floor are excluded from first floor areas. Extent of floor finishes may vary. Even though all reasonable care has been taken in the preparation of these floor plans, prospective purchasers must rely on their own enquiries and should refer to the Contract of Sale and its schedules to clarify all matters which are included in the purchase price.


GROUND FLOOR

LEVEL 1

BED 3

BED 4

DOUBLE GARAGE

WIR

LIN /BR

PWDR

LDRY

BATH

HALLWAY

ENSUITE

LIVING

KITCHEN

DINING

BED 2

MASTER BED

PERGOLA

Type A.3 Terrace - 70, 72 Ground Floor Area Terrace 70 Terrace 72

0

1m

83m² 83m²

First Floor Area 70m² 70m²

5m

Exclusive Use Area 35m² 25m²

Total Area 188m² 178m²

All dimensions and areas are preliminary only and are subject to change without notice. In addition, locations of utilities may vary during construction and all fittings and fixtures on these plans are for illustrative purposes only. All areas are generally measured in accordance with the Property Council of Australia method of measurement. Stair voids to the first floor are excluded from first floor areas. Extent of floor finishes may vary. Even though all reasonable care has been taken in the preparation of these floor plans, prospective purchasers must rely on their own enquiries and should refer to the Contract of Sale and its schedules to clarify all matters which are included in the purchase price.


GROUND FLOOR

LEVEL 1

BED 3

BED 2

DOUBLE GARAGE

WIR

BATH

HALLWAY

LIN /BR

PWDR

LDRY

ENSUITE

LIVING

KITCHEN

DINING

MASTER BED

BED 4

PERGOLA

Type A.4 Terrace - 71 Ground Floor Area Terrace 71

0

1m

83m²

First Floor Area 70m²

5m

Exclusive Use Area 35m²

Total Area 188m²

All dimensions and areas are preliminary only and are subject to change without notice. In addition, locations of utilities may vary during construction and all fittings and fixtures on these plans are for illustrative purposes only. All areas are generally measured in accordance with the Property Council of Australia method of measurement. Stair voids to the first floor are excluded from first floor areas. Extent of floor finishes may vary. Even though all reasonable care has been taken in the preparation of these floor plans, prospective purchasers must rely on their own enquiries and should refer to the Contract of Sale and its schedules to clarify all matters which are included in the purchase price.


GROUND FLOOR

LEVEL 1

BED 3

BED 4

DOUBLE GARAGE

WIR

LIN /BR

PWDR

LDRY

BATH

HALLWAY

ENSUITE

LIVING

KITCHEN

DINING

BED 2

MASTER BED

PERGOLA

Type A.5 Terrace - 67, 98, 102, 110 Ground Floor Area Terrace 67 Terrace 98 Terrace 102 Terrace 110

0

1m

83m² 83m² 83m² 83m²

First Floor Area 70m² 70m² 70m² 70m²

5m

Exclusive Use Area 26m² 31m² 30m² 32m²

Total Area 179m² 184m² 183m² 185m²

All dimensions and areas are preliminary only and are subject to change without notice. In addition, locations of utilities may vary during construction and all fittings and fixtures on these plans are for illustrative purposes only. All areas are generally measured in accordance with the Property Council of Australia method of measurement. Stair voids to the first floor are excluded from first floor areas. Extent of floor finishes may vary. Even though all reasonable care has been taken in the preparation of these floor plans, prospective purchasers must rely on their own enquiries and should refer to the Contract of Sale and its schedules to clarify all matters which are included in the purchase price.


GROUND FLOOR

LEVEL 1

BED 3

BED 2

DOUBLE GARAGE

WIR

BATH

HALLWAY

LIN /BR

PWDR

LDRY

ENSUITE

LIVING

KITCHEN

DINING

MASTER BED

BED 4

PERGOLA

Type A.6 Terrace - 66, 99, 106 Ground Floor Area

Terrace 66 Terrace 99 Terrace 106

0

1m

83m² 83m² 83m²

First Floor Area

70m² 70m² 70m²

5m

Exclusive Use Area

24m² 30m² 32m²

Total Area

177m² 183m² 185m²

All dimensions and areas are preliminary only and are subject to change without notice. In addition, locations of utilities may vary during construction and all fittings and fixtures on these plans are for illustrative purposes only. All areas are generally measured in accordance with the Property Council of Australia method of measurement. Stair voids to the first floor are excluded from first floor areas. Extent of floor finishes may vary. Even though all reasonable care has been taken in the preparation of these floor plans, prospective purchasers must rely on their own enquiries and should refer to the Contract of Sale and its schedules to clarify all matters which are included in the purchase price.


GROUND FLOOR

LEVEL 1

BED 3

BED 4

DOUBLE GARAGE

WIR

LIN /BR

PWDR

LDRY

BATH

HALLWAY

ENSUITE

LIVING

KITCHEN

DINING

MASTER BED

BED 2

PERGOLA

Type A.7 Terrace - 61, 63, 65, 73, 75, 77, 81, 85, 89, 91, 93, 96, 100, 103, 105, 108, 112, 114, 116, 118

Terrace 61 Terrace 63 Terrace 65 Terrace 73 Terrace 75 Terrace 77 Terrace 81

0

1m

Ground Floor First Floor Area Area 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m²

Exclusive Use Area 23m² 21m² 21m² 28m² 28m² 28m² 41m²

5m

Total Area 176m² 174m² 174m² 181m² 181m² 181m² 194m²

Ground Floor First Floor Area Area Terrace 85 83m² 70m² Terrace 89 83m² 70m² Terrace 91 83m² 70m² Terrace 93 83m² 70m² Terrace 96 83m² 70m² Terrace 100 83m² 70m² Terrace 103 83m² 70m²

Exclusive Use Area 28m² 28m² 28m² 28m² 28m² 28m² 28m²

Total Area 181m² 181m² 181m² 181m² 181m² 181m² 181m²

Terrace 105 Terrace 108 Terrace 112 Terrace 114 Terrace 116 Terrace 118

Ground Floor First Floor Area Area 83m² 70m² 83m² 70m² 83m² 70m² 70m² 83m² 70m² 83m² 70m² 83m²

Exclusive Use Area 28m² 28m² 36m² 37m² 38m² 47m²

Total Area 181m² 181m² 189m² 190m² 191m² 200m²

All dimensions and areas are preliminary only and are subject to change without notice. In addition, locations of utilities may vary during construction and all fittings and fixtures on these plans are for illustrative purposes only. All areas are generally measured in accordance with the Property Council of Australia method of measurement. Stair voids to the first floor are excluded from first floor areas. Extent of floor finishes may vary. Even though all reasonable care has been taken in the preparation of these floor plans, prospective purchasers must rely on their own enquiries and should refer to the Contract of Sale and its schedules to clarify all matters which are included in the purchase price.


GROUND FLOOR

LEVEL 1

BED 3

BED 2

DOUBLE GARAGE

WIR

BATH

HALLWAY

LIN /BR

PWDR

LDRY

ENSUITE

LIVING

KITCHEN

DINING

MASTER BED

BED 4

PERGOLA

Type A.8 Terrace - 60, 62, 64, 68, 74, 76, 78, 82, 86, 90, 92, 94, 97, 101, 104, 109, 113, 115, 117

Terrace 60 Terrace 62 Terrace 64 Terrace 68 Terrace 74 Terrace 76 Terrace 78

0

1m

Ground Floor First Floor Area Area 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m²

Exclusive Use Area 23m² 23m² 22m² 28m² 28m² 28m² 28m²

5m

Total Area 176m² 176m² 175m² 181m² 181m² 181m² 181m²

Terrace 82 Terrace 86 Terrace 90 Terrace 92 Terrace 94 Terrace 97

Ground Floor First Floor Area Area 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m²

Exclusive Use Area 31m² 28m² 28m² 28m² 28m² 28m²

Total Area 184m² 181m² 181m² 181m² 181m² 181m²

Terrace101 Terrace 104 Terrace 109 Terrace 113 Terrace 115 Terrace 117

Ground Floor First Floor Area Area 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m² 83m² 70m²

Exclusive Use Area 28m² 28m² 29m² 36m² 38m² 39m²

Total Area 181m² 181m² 182m² 189m² 191m² 192m²

All dimensions and areas are preliminary only and are subject to change without notice. In addition, locations of utilities may vary during construction and all fittings and fixtures on these plans are for illustrative purposes only. All areas are generally measured in accordance with the Property Council of Australia method of measurement. Stair voids to the first floor are excluded from first floor areas. Extent of floor finishes may vary. Even though all reasonable care has been taken in the preparation of these floor plans, prospective purchasers must rely on their own enquiries and should refer to the Contract of Sale and its schedules to clarify all matters which are included in the purchase price.


GROUND FLOOR

LEVEL 1

BED 3

BED 2

CARPORT

GARAGE

WIR

BATH

HALLWAY

LIN /BR

PWDR

LDRY

ENSUITE

LIVING

KITCHEN

DINING

MASTER BED

BED 4

PERGOLA

Type C.1 Terrace - 84, 111 Ground Floor Area Terrace 84 Terrace 111

0

1m

First Floor Area

84m² 84m²

71m² 71m²

5m

Exclusive Use Area 31m² 34m²

Total Area 186m² 189m²

All dimensions and areas are preliminary only and are subject to change without notice. In addition, locations of utilities may vary during construction and all fittings and fixtures on these plans are for illustrative purposes only. All areas are generally measured in accordance with the Property Council of Australia method of measurement. Stair voids to the first floor are excluded from first floor areas. Extent of floor finishes may vary. Even though all reasonable care has been taken in the preparation of these floor plans, prospective purchasers must rely on their own enquiries and should refer to the Contract of Sale and its schedules to clarify all matters which are included in the purchase price.


GROUND FLOOR

LEVEL 1

BED 3

BED 4

CARPORT

GARAGE

WIR

LIN /BR

PWDR

LDRY

BATH

HALLWAY

ENSUITE

LIVING

KITCHEN

DINING

BED 2

MASTER BED

PERGOLA

Type C.2 Terrace - 83 Ground Floor Area Terrace 83

0

1m

First Floor Area

84m²

71m²

5m

Exclusive Use Area 34m²

Total Area 189m²

All dimensions and areas are preliminary only and are subject to change without notice. In addition, locations of utilities may vary during construction and all fittings and fixtures on these plans are for illustrative purposes only. All areas are generally measured in accordance with the Property Council of Australia method of measurement. Stair voids to the first floor are excluded from first floor areas. Extent of floor finishes may vary. Even though all reasonable care has been taken in the preparation of these floor plans, prospective purchasers must rely on their own enquiries and should refer to the Contract of Sale and its schedules to clarify all matters which are included in the purchase price.


GROUND FLOOR

LEVEL 1

BED 3

BED 2

GARAGE

CARPORT

WIR

BATH

HALLWAY

LIN /BR

PWDR

LDRY

ENSUITE

LIVING

KITCHEN

DINING

MASTER BED

BED 4

PERGOLA

Type C.3 Terrace - 80 Ground Floor Area Terrace 80

0

1m

First Floor Area

85m²

72m²

5m

Exclusive Use Area 33m²

Total Area 190m²

All dimensions and areas are preliminary only and are subject to change without notice. In addition, locations of utilities may vary during construction and all fittings and fixtures on these plans are for illustrative purposes only. All areas are generally measured in accordance with the Property Council of Australia method of measurement. Stair voids to the first floor are excluded from first floor areas. Extent of floor finishes may vary. Even though all reasonable care has been taken in the preparation of these floor plans, prospective purchasers must rely on their own enquiries and should refer to the Contract of Sale and its schedules to clarify all matters which are included in the purchase price.


GROUND FLOOR

LEVEL 1

BED 3

BED 4

CARPORT

GARAGE

WIR

LIN /BR

PWDR

LDRY

BATH

HALLWAY

ENSUITE

LIVING

KITCHEN

DINING

BED 2

MASTER BED

PERGOLA

Type C.4 Terrace - 87 Ground Floor Area Terrace 87

0

1m

First Floor Area

85m²

72m²

5m

Exclusive Use Area 27m²

Total Area 184m²

All dimensions and areas are preliminary only and are subject to change without notice. In addition, locations of utilities may vary during construction and all fittings and fixtures on these plans are for illustrative purposes only. All areas are generally measured in accordance with the Property Council of Australia method of measurement. Stair voids to the first floor are excluded from first floor areas. Extent of floor finishes may vary. Even though all reasonable care has been taken in the preparation of these floor plans, prospective purchasers must rely on their own enquiries and should refer to the Contract of Sale and its schedules to clarify all matters which are included in the purchase price.


Alton II Edition FIXTURES & FINISHES SCHEDULE KITCHEN NOBLE SCHEME  Bench top: Smartstone ‘Gris Roca’ (or equal to)  Splashback: 100x 300 rectified white satin subway tile (or equal to)  Cabinetry: Combination of Laminex Impressions ‘Fossil’ Nuance finish (overhead cupboards only) and Laminex ‘Stone Grey’ matte (or equal to).  Floor: Engineered timber plank flooring OAK SCHEME  Bench top: Smartstone ‘Ceniza’ (or equal to)  Splashback: 100x 300 rectified white satin tile (or equal to)  Cabinetry: Combination of Laminex Impressions ‘Baye’ nuance finish (overhead cupboards only) and Laminex ‘Alabaster’ matte (or equal to).  Floor: Engineered timber plank flooring KITCHEN FITTINGS        

Sink: Undermount stainless 1 ¾ bowl sink Tapware: Chrome sink mixer Under bench oven: 60cm electric oven Cooktop: 60cm electric cooktop Range Hood: Recirculating range hood Dishwasher: Stainless steel Handles: Designer polished chrome from the Azure range Spatial provision for microwave

BATHROOM & ENSUITE NOBLE SCHEME    

Vanity basin: White polymarble recessed in white cabinet unit Splashback: Satin white subway tile 100x300 (or equal to) Floor tile: TF Roca Graphite 300x300 (or equal to) Wall tile: Satin white subway tile 100x300 (or equal to)

OAK SCHEME    

Vanity basin: White polymarble recessed in white cabinet unit Splashback: Satin white subway tile 100x300 (or equal to) Floor tile: TF Roca Grigio 300x300 (or equal to) Wall tile: Satin white subway tile 100x300 (or equal to)

BATHROOM & ENSUITE FITTINGS    

Shower screen: Aluminium framed with clear glass Toilet suite: White Vitreous China dual flush Tapware: Chrome mixer Accessories: Polished chrome towel rail, hand towel rail, toilet roll holder


LAUNDRY     

Walls: Low sheen acrylic paint Ceiling: Painted plasterboard ceiling with bulkheads as required for services Tapware: Chrome mixer Laundry Sink: Stainless steel tub and cabinet unit Splashback: 100 x 300mm ceramic subway tile as required

BEDROOMS & WARDROBES        

Floor (Noble): Frontline Esperance ‘Pine Grove’ premium carpet (or equal to) Floor (Oak): Frontline Esperance ‘Sand bank’ premium carpet (or equal to) Walls: Washable low sheen acrylic paint Ceilings & Cornice: Painted plasterboard lining Skirting: Paint-grade splayed timber skirting 67mm x 11mm Architraves: Paint-grade splayed timber architraves 42mm x 11mm Walk in robes: Full width shelf, hanging rail and bank of 4 shelves with mirror sliding door Built in robes: Full width shelf, hanging rail and bank of 4 shelves

ENTRY, LOUNGE, LIVING & DINING      

Open plan living Floor: Engineered timber plank flooring Walls: Washable low sheen acrylic paint Ceilings: Painted plasterboard lining. Skirting: Paint-grade splayed timber skirting 67mm x 11mm Architraves: Paint-grade splayed timber architraves 42mm x 11mm

STORAGE  Linen cupboard  Broom cupboard  Under-stairs storage

GENERAL CONSTRUCTION                

External walls: Predominantly painted render and painted composite wall cladding (2 colours) Walls between units: Fire and sound rated walls lined both sides with painted plasterboard Internal walls: Stud walls lined with plasterboard and paint finish Roof: Colourbond metal deck roof with insulation to Australian standards Glazed doors and windows: Black powder coated aluminium frames with glazing Entry door: Timber and glass where specified, or equivalent Internal doors: Painted flush panel doors Door hardware – entry door: Designer chrome lever handle and lockset Door hardware – internal doors: Designer chrome levers with privacy set to bathroom, ensuite and powder room where applicable Glazing: Glass to required energy rating Lighting: Selected surface mounted and / or recessed light fittings. Sun / privacy screening: Powder coated aluminium screens (as required) Fencing and balustrades: A mixture of aluminium and timber Hot water system: Electric hot water unit Bulkheads: Flat acrylic paint on plasterboard Visitor car parking: On-site visitor car parking provided


RECREATION  Large communal lawn space  Subtropical landscaping to communal area ELECTRICAL      

Free to air television points to Living and Bedroom 1 Telephone points to Living and Bedroom 1 1 phone line to each residence Foxtel-ready wiring Ceiling fans to bedrooms and living areas Smoke detectors as required

AIR-CONDITIONING  Split system air conditioning to Living / Dining and Bedroom 1

COMMUNICATIONS  All terraces pre-wired for fibre optic network connection


164 Government Road RICHLANDS, QLD 4077


BMT Tax Depreciation QUANTITY SURVEYORS

Level 7, 320 Adelaide Street Brisbane QLD 4000 GPO Box 3229 Brisbane QLD 4001 t 07 3221 9922 e info@bmtqs.com.au f 07 3221 9933 w www.bmtqs.com.au Australia Wide Service

ABN 44 115 282 392

4 October, 2016 Azure 622 Wickham Street FORTITUDE VALLEY, QLD 4006 164 Government Road, RICHLANDS, QLD 4077 - 479163 Dear Sir/Madam, Please find attached the BMT Tax Depreciation Estimates for the above property detailing the depreciation and associated tax allowances that may be available to the owner under the Income Tax Assessment Act 1997 (ITAA97). This document is intended to provide a guide to the potential depreciation and building allowances available from the purchase of the above residential property, facilitating the estimation of the after tax return on the investment over the first 10 full years of ownership. 1.0 Information The following information was used in the preparation of the schedules:

§

Written and verbal information provided by Azure.

2.0 Depreciation Potential – Plant and Capital Allowance The purchaser of the property, intending to use it for income producing purposes, is entitled to depreciation including:

§ §

Division 40, Depreciation of Plant and Equipment; and Division 43, Capital Works Allowance (2.5 % pa).

The depreciation of plant and equipment items is based on the diminishing value effective life rates as published by the commissioner of taxation (2015/2). In the scenario where plant and equipment items are not sold at an agreed value these items will be depreciated on the basis of a just attribution of the total expenditure (42-65 ITAA97). 3.0 Capital Work Allowance The special building write off allowance is based on the industry specific eligible dates. If the property qualifies for the special building write off, the applicable depreciation rate will be used. Where properties do not qualify for the special building write off allowance, no capital works allowance will be used. The allowance for capital works will be based on the historical cost of construction less nondepreciable items.

Maximising Property Tax Depreciation Deductions 479163


BMTTax Depreciation QUANTITY SURVEYORS

4.0 Estimate Calculation This report is based on a just attribution of the total expenditure to estimate the allowances for plant. The estimates provided are based on the sale price as indicated, as the final purchase price at this time is not known. This estimate has been provided for the purpose of informing the investor of the depreciation potential. Different depreciation returns are available and are influenced by the purchase price of the property. Please note that the first year calculations are based on ownership over a full financial year. 5.0 Disclaimer This report has been based on very preliminary documentation, and the figures provided should be treated as a guide only. As documentation improves, BMT Tax Depreciation will be able to provide more accurate estimates of depreciation. 6.0 Conclusion As can be extracted from the attached tables, the units will obtain maximum depreciation potential within the first 5 years of ownership. BMT Tax Depreciation would be pleased to provide a complete detailed tax depreciation report on any of the units in the above property upon request. Our results suggest employing a specialist to maximise the various tax allowances has a significant effect on improving the after tax return. Should you or the purchaser wish to discuss the contents of this report in more detail, please do not hesitate to contact Bradley Beer at the office. Yours Sincerely,

BMT Tax Depreciation Pty Ltd Quantity Surveyors

Maximising Property Tax Depreciation Deductions 479163


BMTTax Depreciation QUANTITY SURVEYORS

Appendix One BMT Tax Depreciation Estimate 164 Government Road RICHLANDS, QLD 4077

Maximising Property Tax Depreciation Deductions 479163


BMT Tax Depreciation

Level 7, 320 Adelaide Street Brisbane QLD 4000 GPO Box 3229 Brisbane QLD 4001

QUANTITY SURVEYORS

t 07 3221 9922 e info@bmtqs.com.au f 07 3221 9933 w www.bmtqs.com.au Australia Wide Service

ABN 44 115 282 392

Estimate of Depreciation Claimable Typical 4 Bedroom Dwelling 164 Government Road, RICHLANDS, QLD 4077 Comparison Yr 1-10 (Max & Min)

Maximum Year

Plant & Equipment

Division 43

Total

1 2 3 4 5 6 7 8 9 10 11 +

5,403 5,442 3,903 3,021 2,593 2,143 1,404 930 784 490 813

5,762 5,762 5,762 5,762 5,762 5,762 5,762 5,762 5,762 5,762 172,858

11,165 11,204 9,665 8,783 8,355 7,905 7,166 6,692 6,546 6,252 173,671

Total

$26,926

$230,478

$257,404

$12,000 $10,800

Minimum

$9,600 $8,400 $7,200 $6,000 $4,800 $3,600 $2,400 $1,200 $0

1

2

3

4

5 6 7 8 Years Maximum                        Minimum

9

10

Cumulative Yr 1-10 (Min & Max)

Year

Plant & Equipment

Division 43

Total

1 2 3 4 5 6 7 8 9 10 11 +

4,421 4,452 3,193 2,471 2,121 1,753 1,148 761 642 401 665

4,714 4,714 4,714 4,714 4,714 4,714 4,714 4,714 4,714 4,714 141,430

9,135 9,166 7,907 7,185 6,835 6,467 5,862 5,475 5,356 5,115 142,095

Total

$22,028

$188,570

$210,598

$84,000 $75,600 $67,200 $58,800 $50,400 $42,000 $33,600 $25,200 $16,800 $8,400 $0

1

2

3

4

5 6 7 8 Years Maximum                        Minimum

9

10

* assumes settlement on 1 July in any given year.

This is an estimate only and should not be applied or acted upon. Depreciation of plant is based on the Diminishing Value method of depreciation applying Low-Value Pooling. The Division 43 Write Off Allowance is calculated using 2.5% depending on the property type and date of construction. This estimate is based upon legislation in force at the date of report production.

This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 07 3221 9922

Maximising Property Tax Depreciation Deductions 479163


BMT Tax Depreciation

Level 7, 320 Adelaide Street Brisbane QLD 4000 GPO Box 3229 Brisbane QLD 4001

QUANTITY SURVEYORS

t 07 3221 9922 e info@bmtqs.com.au f 07 3221 9933 w www.bmtqs.com.au Australia Wide Service

ABN 44 115 282 392

Estimate of Depreciation Claimable Typical 3 Bedroom Dwelling 164 Government Road, RICHLANDS, QLD 4077 Comparison Yr 1-10 (Max & Min)

Maximum Year

Plant & Equipment

Division 43

Total

1 2 3 4 5 6 7 8 9 10 11 +

5,124 5,118 3,678 2,863 2,478 2,061 1,344 1,060 661 414 686

4,990 4,990 4,990 4,990 4,990 4,990 4,990 4,990 4,990 4,990 149,675

10,114 10,108 8,668 7,853 7,468 7,051 6,334 6,050 5,651 5,404 150,361

Total

$25,487

$199,575

$225,062

$11,000 $9,900

Minimum

$8,800 $7,700 $6,600 $5,500 $4,400 $3,300 $2,200 $1,100 $0

1

2

3

4

5 6 7 8 Years Maximum                        Minimum

9

10

Cumulative Yr 1-10 (Min & Max)

Year

Plant & Equipment

Division 43

Total

1 2 3 4 5 6 7 8 9 10 11 +

4,192 4,188 3,010 2,343 2,028 1,687 1,100 868 541 338 562

4,082 4,082 4,082 4,082 4,082 4,082 4,082 4,082 4,082 4,082 122,461

8,274 8,270 7,092 6,425 6,110 5,769 5,182 4,950 4,623 4,420 123,023

Total

$20,857

$163,281

$184,138

$75,000 $67,500 $60,000 $52,500 $45,000 $37,500 $30,000 $22,500 $15,000 $7,500 $0

1

2

3

4

5 6 7 8 Years Maximum                        Minimum

9

10

* assumes settlement on 1 July in any given year.

This is an estimate only and should not be applied or acted upon. Depreciation of plant is based on the Diminishing Value method of depreciation applying Low-Value Pooling. The Division 43 Write Off Allowance is calculated using 2.5% depending on the property type and date of construction. This estimate is based upon legislation in force at the date of report production.

This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 07 3221 9922

Maximising Property Tax Depreciation Deductions 479163


March 2018

To whom it may concern,

Rental Appraisal for Floor plan “Type A� AZURE 164 Government Road Richlands, QLD, 4077. BRAND NEW FOUR BEDROOM, TWO BATHROOM, DOUBLE GARAGE TOWNHOUSE The current market analysis is below, providing you with a range of rental value. I trust that the following information will be of assistance when considering the rental range provided. When assessing the rental value of a Property, we take into account factors that assist in leasing your property promptly. This includes comparison of similar properties, current vacancies and market trends. Obtaining a realistic rental value ensures that your property is let as quickly as possible for a better financial return on your investment.

We estimate your property will attract rental income of between: $400.00 and $420.00 per week if the property is unfurnished $450.00 and $470.00 per week if the property was to be leased fully furnished It may depend on your personal situation as to the rent asked. If you require a tenant urgently it may be better to consider starting at the lower figure appraised. You may choose to test the market to see if the higher figure can be achieved and see what feedback tenants inspecting provide.

Our feedback to you is important so that we can both make practical and informed rental assessments and vary the rental amount as needed. Lessors using our management services are provided with a regular appraisal at the end of each lease or annually, whichever comes first. If possible, we aim at achieving a higher rent for Lessors although this depends on many factors such as the condition of property and the market activity.


Please note the price range takes into consideration variance for the differing aspects of the building which may be attributes of individual apartments, if seeking individual lot appraisals these will be conducted on request once the property is complete.

The prices I have included are reflective of the current rental market. These estimates are based upon the floor plans supplied and like properties currently available in surrounding areas.

Our team would be delighted to manage your investment with your individual needs in mind. I will be in contact in the near future however, if in the meantime, I can answer any questions, please contact me.

Kind regards

Christian Baron

Principal & Managing Director


March 2018

To whom it may concern,

Rental Appraisal for Floor plan “Type C� AZURE 164 Government Road Richlands, QLD, 4077. BRAND NEW FOUR BEDROOM, TWO BATHROOM, SINGLE GARAGE + CAR PORT TOWNHOUSE The current market analysis is below, providing you with a range of rental value. I trust that the following information will be of assistance when considering the rental range provided. When assessing the rental value of a Property, we take into account factors that assist in leasing your property promptly. This includes comparison of similar properties, current vacancies and market trends. Obtaining a realistic rental value ensures that your property is let as quickly as possible for a better financial return on your investment.

We estimate your property will attract rental income of between: $385.00 and $405.00 per week if the property is unfurnished $440.00 and $460.00 per week if the property was to be leased fully furnished It may depend on your personal situation as to the rent asked. If you require a tenant urgently it may be better to consider starting at the lower figure appraised. You may choose to test the market to see if the higher figure can be achieved and see what feedback tenants inspecting provide.

Our feedback to you is important so that we can both make practical and informed rental assessments and vary the rental amount as needed. Lessors using our management services are provided with a regular appraisal at the end of each lease or annually, whichever comes first. If possible, we aim at achieving a higher rent for Lessors although this depends on many factors such as the condition of property and the market activity.


Please note the price range takes into consideration variance for the differing aspects of the building which may be attributes of individual apartments, if seeking individual lot appraisals these will be conducted on request once the property is complete.

The prices I have included are reflective of the current rental market. These estimates are based upon the floor plans supplied and like properties currently available in surrounding areas.

Our team would be delighted to manage your investment with your individual needs in mind. I will be in contact in the near future however, if in the meantime, I can answer any questions, please contact me.

Kind regards

Christian Baron

Principal & Managing Director


30th October, 2016 622 Wickham Street, Fortitude Valley QLD 4006

Alton Edition Pty Ltd PO Box 1616 New Farm QLD 4006

T +61 7 3227 1571 F +61 7 3252 7277 azliving.com.au

To whom it may concern, Rental Appraisal, ‘Alton Edition’, Government Road, Richlands QLD - TYPE A

BED 2

GE

BED 4

BED 2

BED 4

DOUBLE GARAGE

ENSUITE BATH

LDRY WIR STORE PDR LIN

DINING

DINING

MASTER BEDROOM BED 3 LIVING

PROPERTY FEATURES: ENSUITE - 4 Bedrooms LDRY - 2.5 BathroomsWIR - Open plan LIN living/dining/kitchen - Covered outdoor entertainment area - 2 Car lock-up garage - 181 sqm - 215 sqm. MASTER

BATH

BEDROOM BED 3

LIVING KITCHEN ENTRY

COVERED PATIO PATIO ROOF

PATIO ROOF

After conducting further research, we are of the opinion that in the current market this property wth the abovementioned features is capable of achieving a weekly rent in the range of $410 - $430. The rent achieved by these properties will be influenced by the following factors: - Lease specifics, such as start date and term; - The month of the year in which the property is available for rent; and - How motivated you are to reduce the vacancy period.

All areas are preliminary only, subject to detail construction documents and finalisation ofAllBuilding Format Plans only, subject to detail construction documents and finalisation of Building Format Plans areas are preliminary All floor areas measured to the outside face of external walls and centreline of party walls, garages, patios, balconies stairs. Allincluding floor areas measured to the outsideand face of external walls and centreline of party walls, including garages, patios, balconies and stairs. Stair voids to the first floor are excluded from first floor area. Stair voids to the first floor are excluded from first floor area. All reasonable care has been taken in the preparation of these floor plans. All reasonable care has been taken in the preparation of these floor plans. To the best of our knowledge, no relevant information has been omitted. To the best of our knowledge, no relevant information has been omitted. Azure Development Group Proprietary Limited and its appointed agents disclaim all liability should any information matter contained Azure Development Group or Proprietary Limited and its appointed agents disclaim all liability should any information or matter contained herein differ from the contract of sale or the actual constructed development. herein differ from the contract of sale or the actual constructed development. All information is correct at the time of printing. All information is correct at the time of printing.

It is recommended to review the properties available at, or close to, completion date in order to achieve the maximum possible return for each property. Yours Sincerely,

TRENT KEIRNAN | DIRECTOR AZURE LIVING PTY LTD RENTAL APPRAISAL - ALTON EDITION, RICHLANDS

AZURE LIVING


14th October, 2016 622 Wickham Street, Fortitude Valley QLD 4006

Alton Edition Pty Ltd PO Box 1616 New Farm QLD 4006

T +61 7 3227 1571 F +61 7 3252 7277 azliving.com.au

To whom it may concern, Rental Appraisal, ‘Alton Edition’, Government Road, Richlands QLD - TYPE B

LDRY BATH

GARAGE

BED 3

BATH

BED 3

GARAGE PDR

STORE

BED 2

LIN.

TCHEN

KITCHEN

ENSUITE

DINING

DINING

MASTER BED

PROPERTY FEATURES: - 3 BedroomsBED 2 - 2.5 Bathrooms LIN. - Open plan living/dining/kitchen - Covered outdoor entertainment area ENSUITE - 1 Car + 1 car allocation - 154 sqm - 167 sqm. MASTER BED

LIVING ENTRY

ED PATIO

ENTRY

COVERED PATIO PATIO ROOF

PATIO ROOF

After conducting further research, we are of the opinion that in the current market this property wth the abovementioned features is capable of achieving a weekly rent in the range of $375 - $395. The rent achieved by these properties will be influenced by the following factors: - Lease specifics, such as start date and term; - The month of the year in which the property is available for rent; and - How motivated you are to reduce the vacancy period.

All areas are preliminary only, subject to detail construction documents and finalisation ofAllBuilding Format Plans only, subject to detail construction documents and finalisation of Building Format Plans areas are preliminary All floor areas measured to the outside face of external walls and centreline of party walls, garages, patios, balconies stairs. Allincluding floor areas measured to the outsideand face of external walls and centreline of party walls, including garages, patios, balconies and stairs. Stair voids to the first floor are excluded from first floor area. Stair voids to the first floor are excluded from first floor area. All reasonable care has been taken in the preparation of these floor plans. All reasonable care has been taken in the preparation of these floor plans. To the best of our knowledge, no relevant information has been omitted. To the best of our knowledge, no relevant information has been omitted. Azure Development Group Proprietary Limited and its appointed agents disclaim all liability should any information matter contained Azure Development Group or Proprietary Limited and its appointed agents disclaim all liability should any information or matter contained herein differ from the contract of sale or the actual constructed development. herein differ from the contract of sale or the actual constructed development. All information is correct at the time of printing. All information is correct at the time of printing.

It is recommended to review the properties available at, or close to, completion date in order to achieve the maximum possible return for each property. Yours Sincerely,

TRENT KEIRNAN | DIRECTOR AZURE LIVING PTY LTD RENTAL APPRAISAL - ALTON EDITION, RICHLANDS

AZURE LIVING


14th October, 2016 622 Wickham Street, Fortitude Valley QLD 4006

Alton Edition Pty Ltd PO Box 1616 New Farm QLD 4006

T +61 7 3227 1571 F +61 7 3252 7277 azliving.com.au

To whom it may concern, Rental Appraisal, ‘Alton Edition’, Government Road, Richlands QLD - TYPE C

BED 2

BED 4

GARAGE

CARPORT

BATH

LDRY WIR

STORE

BED 2

GARAGE

ENSUITE

STORE

ENTRY

DR

BED 4

PDR LIN

DINING

MASTER BEDROOM

PROPERTY FEATURES: -ENSUITE 4 Bedrooms BATH - 2.5 Bathrooms LDRY -WIROpen plan living/dining/kitchen LIN - Covered outdoor entertainment area - 1 Car lock-up garage + 1 carport - 188 sqm - 209 sqm. MASTER BEDROOM

BED 3

BED 3

LIVING KITCHEN

KITCHEN

COVERED PATIO PATIO ROOF

PATIO ROOF

After conducting further research, we are of the opinion that in the current market this property wth the abovementioned features is capable of achieving a weekly rent in the range of $400 - $420. The rent achieved by these properties will be influenced by the following factors: - Lease specifics, such as start date and term; - The month of the year in which the property is available for rent; and - How motivated you are to reduce the vacancy period.

All areas are preliminary only, subject to detail construction documents and finalisation ofAllBuilding Format Plans only, subject to detail construction documents and finalisation of Building Format Plans areas are preliminary All floor areas measured to the outside face of external walls and centreline of party walls, garages, patios, balconies stairs. Allincluding floor areas measured to the outsideand face of external walls and centreline of party walls, including garages, patios, balconies and stairs. Stair voids to the first floor are excluded from first floor area. Stair voids to the first floor are excluded from first floor area. All reasonable care has been taken in the preparation of these floor plans. All reasonable care has been taken in the preparation of these floor plans. To the best of our knowledge, no relevant information has been omitted. To the best of our knowledge, no relevant information has been omitted. Azure Development Group Proprietary Limited and its appointed agents disclaim all liability should any information matter contained Azure Development Group or Proprietary Limited and its appointed agents disclaim all liability should any information or matter contained herein differ from the contract of sale or the actual constructed development. herein differ from the contract of sale or the actual constructed development. All information is correct at the time of printing. All information is correct at the time of printing.

It is recommended to review the properties available at, or close to, completion date in order to achieve the maximum possible return for each property. Yours Sincerely,

TRENT KEIRNAN | DIRECTOR AZURE LIVING PTY LTD RENTAL APPRAISAL - ALTON EDITION, RICHLANDS

AZURE LIVING


164 GOVERNMENT ROAD, RICHLANDS

12 OCTOBER 2016 PREPARED FOR AZURE


URBIS STAFF RESPONSIBLE FOR THIS REPORT WERE: Director

Malcolm Aikman

Associate Director

Paul Riga

Consultant

Hailey Rivera

Research Analyst

Meredith Knox

Project Code

EMR0900

Report Number

1

© Urbis Pty Ltd ABN 50 105 256 228 All Rights Reserved. No material may be reproduced without prior permission. You must read the important disclaimer appearing within the body of this report. urbis.com.au


TABLE OF CONTENTS 1. Introduction ........................................................................................................................................... 1 2. Alton Edition - Richlands ....................................................................................................................... 2 2.1. Project Overview ................................................................................................................................... 2 3. Research Methodology and Assumptions ............................................................................................ 3 3.1. Market Position and Benchmarks ......................................................................................................... 3 4. Rental Summary ................................................................................................................................... 4 4.1. Residential Tenancies Authority Data................................................................................................... 4 4.2. On-the-Market Rental Assessment....................................................................................................... 5 5. Rental Appraisal .................................................................................................................................... 6 Disclaimer .......................................................................................................................................................... 7


Urbis was commissioned by Azure to conduct an independent rental assessment of the Alton Edition, Richlands project located at 164 Government Road, Richlands. The assessment will be achieved through application of the following; 

A review of the provided plans and product mix for the 164 Government Road, Richlands development will be conducted to identify comparable attributes and set product benchmarks.



An analysis of comparable new and near-new townhouse projects will be conducted to estimate the weekly rent for townhouses. The analysis will also estimate the premium associated with townhouse and complex attributes, which includes location within the complex and individual floorplans.

In order to best conduct the rental range assessment, Urbis requested key project information from Azure be provided including project mix, product types (number of bedrooms, bathrooms and car parks), sizing and floorplans. Urbis will take into account this information as well as other active projects based on geographic proximity and product offerings. As a result, on-the-market rental data and Residential Tenancies Authority (RTA) median rental figures have been analysed throughout the rental assessment. The aforementioned research methodology and rationales have been established for the rental appraisal of townhouses within Richlands and the assumptions and premiums have been identified using Urbis qualitative and quantitative research of the rental market.

URBIS REP_101016_ALTON EDITION - RICHLANDS - RENTAL ASSESSMENT

INTRODUCTION

1


The Alton Edition, Richlands development is located at 164 Government Road, Richlands. The site is positioned 17kms west of the Brisbane central business district (CBD) and is well-serviced by bus and train networks (400m). Within walking distance to the site is a wide range of lifestyle offerings including Richlands Plaza (Woolworths), Progress Corner Shopping Centre (McDonalds), Queensland Lions football club and tavern and local green space. The Ipswich and Centenary motorways and the Forest Lake shopping precinct are within a 5-minute drive away. Within a 10-minute drive is Springfield City, featuring Mater Hospital, Orion Shopping Centre, Brookwater Golf Course and Country Club and a waterpark. Our preliminary data for the 164 Government Road, Richlands development indicates the following features:

Product Breakdown Alton Edition, Richlands

Product Type Product Details Type A Type B Type C TOTAL

Table 2.1

Total Yield

4 Bed, 2.5 Bath, 2 Car 3 Bed, 2.5 Bath, 1 Car 4 Bed, 2.5 Bath, 2 Car

39 11 8 58

Townhouse Size (Sq.m) Internal Gross Min Max Min Max 153 155 181 215 134 134 154 167 155 158 188 228 134 158 154 228

P repared by Urbis; So urce: A zure

Essentially, the Alton Edition, Richlands development located at 164 Government Road, Richlands will include 58 two-storey, three and four bedroom townhouses, including: 

11 x 3 bedroom, 2.5 bathroom townhouses and,

47 x 4 bedroom, 2.5 bathroom townhouses.

Each townhouse will contain a covered patio.

All three bedroom townhouses will contain one enclosed car park and one additional car park allocation.

Four bedroom townhouses with Type A floorplans will each contain two enclosed car parks, while Type C floorplans will contain one enclosed car park and one carport.

Communal facilities include shared open space.

2 ALTON EDITION - RICHLANDS

URBIS REP_101016_ALTON EDITION - RICHLANDS - RENTAL ASSESSMENT


In order to conduct the rental range assessment, Urbis was provided with a brief project summary from Azure for the Alton Edition, Richlands project including: 

Project mix and floorplans

Product type and size (bedrooms, bathrooms and car parks)

Schedule of finishes

Project master plan

In establishing the rental range assessment for the Alton Edition, Richlands development, Urbis has taken into account the market position of the project as well as other active projects based on geographic proximity and product offerings.

In establishing the rental assessment for the Alton Edition, Richlands project, we have taken into account the following: Alton Edition, Richlands Considerations 

The developments immediate proximity to major arterial roads and public transport connections (including Ipswich and Centenary motorway and Richlands train/bus station) which provide direct access links to the Brisbane CBD and surroundings.

Location within immediate proximity to the benefits of local amenity including entertainment and dining, retail, education, recreational facilities and green space.

With a large manufacturing industry present within Richlands, employment is highly supported locally and with its high connectivity to other major employment nodes, Richlands is set for future employment growth.

URBIS REP_101016_ALTON EDITION - RICHLANDS - RENTAL ASSESSMENT

RESEARCH METHODOLOGY AND ASSUMPTIONS

3


The Residential Tenancies Authority (RTA) is a state government statutory body that provides tenancy information, education and dispute resolution for the Queensland residential rental sector. The RTA provides median weekly rental data on typical rents for recently rented townhouses and houses. The data is based on an analysis of information gathered from new rental bond lodgements each quarter. There are a number of limitations with the RTA data including; 

It must be noted, that the data does not gather information on the state or age of the premises or any inclusions provided or available.

The large sample size of the RTA data means that a broad mix of new and older product is included in the data sample.

As the RTA data is collected on a postcode basis the sample is skewed when included suburbs display differing product types to the subject.

The RTA median weekly rental data table below displays rental data for three bedroom townhouses and three and four bedroom houses for the June quarter 2016. As RTA data is collected on a postcode basis, Richlands Catchment data for the 4077 postcode includes the suburbs of Richlands, Inala, Durack, and Doolandella. The Richlands Catchment has been compared with the greater benchmark of the Brisbane Local Government Area (LGA).

RTA Median Weekly Rental Data Three Bedroom Townhouses and Three and Four Bedroom Houses

Jun-11

Table 4.1

Median Weekly Rent ($) Jun-12 Jun-13 Jun-14 Jun-15

Jun-16

Three Bedroom Townhouses Richlands Catchment Brisbane LGA

$345 $400

$345 $400

$355 $405

$355 $400

$360 $410

$355 $420

Three Bedroom Houses Richlands Catchment Brisbane LGA

$310 $390

$320 $400

$310 $410

$320 $410

$320 $420

$320 $420

Four Bedroom Houses Richlands Catchment Brisbane LGA

$380 $470

$395 $480

$415 $490

$420 $500

$425 $500

$430 $515

P repared by Urbis; So urce: RTA

The above summary table indicates the median weekly rent within the Richlands Catchment for three bedroom townhouses and houses has remained fairly stable over the past 12 months, whilst recording slight growth over the past five years to June 2016.

Four bedroom houses in the Richlands Catchment have continued to record steady growth over the past five years to June 2016 with a rate of 2.5 per cent per annum.

The Richlands Catchment continues to offer affordability over the Brisbane LGA median rental price.

Worth noting, where RTA data does not take into consideration the age or state of a product, in general the Richlands Catchment contains a large portion of new and near-new product, giving a good indication of the current median weekly rent for the area.

4 RENTAL SUMMARY

URBIS REP_101016_ALTON EDITION - RICHLANDS - RENTAL ASSESSMENT


New Bond Lodgements – Three Bedroom Townhouses Richlands Catchment – June 2011 to June 2016

Chart 4.1

With the introduction of new townhouse product to the Richlands Catchment, bond lodgements have increased by 35 per cent per annum over the five years to June 2016. This demonstrates the positive absorption and continued demand for new townhouse rentals within the catchment.

An on-the-market rental assessment includes an analysis of advertised and obtained rents for new and nearnew townhouse projects. This assists in identifying any rental price premiums paid for new product within a catchment. The on-the-market rental data catchment for the Alton Edition project in Richlands includes a focused analysis on Richlands, but also a review of the suburbs of Ellen Grove and Forest Lake. This data illustrates whether townhouse projects have been able to command a rental premium based on the following; 

Location: Whether the project is located within a suburb that is generating a rental premium.

Floorplan and position: If the townhouse is located in prime position within a site plan or has a superior floorplan.

Amenity/Finishes: If a project has generated a premium for additional amenity within the complex or premium fixtures and finishes.

The on-the-market townhouse rental data table below details the minimum, maximum and median rents that have been achieved within the Richlands rental catchment.

On-The-Market Rental Data Three and Four Bedroom Townhouses

Table 4.2

Bedrooms Bathrooms Car Space Richlands Catchment Richlands Catchment

3 4

2 2

2 2

Weekly Rent ($) Min Max Median $350 $385 $370 $390 $410 $400

P repared by Urbis; So urce: Realestate.co m.au, P rimary Research

The median weekly rent for new and near-new three bedroom townhouses in the Richlands Catchment is $370, ranging between $350 and $385 per week. New and near-new four bedroom townhouses recorded a median of $400, with a tight range of $390 to $410 per week.

While the Richlands Catchment does incorporate a large proportion of near-new townhouse product, there is limited supply of brand new townhouse product available to the rental market. Townhouses achieving $385 per week were brand new townhouses in a complex containing a pool.

URBIS REP_101016_ALTON EDITION - RICHLANDS - RENTAL ASSESSMENT

RENTAL SUMMARY

5


The assumptions below have been taken into account in the rental assessment. In addition, the following premiums were identified and should be adopted within the provided rental ranges with regards to townhouses in Richlands. These premiums are based on qualitative and quantitative research:

We have taken into account the internal/gross size of all townhouses within the subject development in direct comparison to similar products within surrounding areas. Townhouses which have notably larger gross floor area will obtain a premium.

All townhouses have significant external amenity (retail, employment and public transport) and this has been taken into account in the rental assessment.

All townhouses have considerable internal amenity and this has been taken into account in the rental assessment.

Townhouses surrounded by or adjoining park amenity will obtain a premium.

Townhouses with two enclosed car spaces will achieve a slight premium.

The following research methodology and rationales were established for the rental appraisal of townhouses in Richlands:

Median rental data was gathered from the Residential Tenancies Authority (RTA) and compared to onthe-market rents. This process helped to identify the premium that new products are currently able to attain in the Richlands market.

Only townhouses comparable to the subject site have been used for the on-the-market rental comparison, identified based on their location, size, fixtures and fittings and advertised weekly rents. Primary comparisons provide a good indication of what the Alton Edition, Richlands development may be capable of achieving if it was in today’s market.

On-the-market rents were calculated based on advertised rents (at the time of writing) attained from realestate.com.au, domain.com.au and through primary research including building and property management surveys. It should be noted that these figures are advertised rents and do not necessarily represent what the market has paid for the properties.

Alton Edition, Richlands Estimated Unfurnished Weekly Rent Product Type

Product Details

Type A Type B Type C TOTAL

4 Bed, 2.5 Bath, 2 Car 3 Bed, 2.5 Bath, 1 Car 4 Bed, 2.5 Bath, 2 Car

Table 5.1 Total Yield 39 11 8 58

Townhouse Size (Sq.m) Internal Gross Min Max Min Max 153 155 181 215 134 134 154 167 155 158 188 228

Unfurnished Weekly Rent ($) Min Max $400 $420 $375 $385 $395 $405

P repared by Urbis; So urce: Internal

6 RENTAL APPRAISAL

URBIS REP_101016_ALTON EDITION - RICHLANDS - RENTAL ASSESSMENT


This report is dated 10 October 2016 and incorporates information and events up to that date only and excludes any information arising, or event occurring, after that date which may affect the validity of Urbis Pty Ltd’s (Urbis) opinion in this report. Urbis prepared this report on the instructions, and for the benefit only, of Azure (Instructing Party) for the purpose of Rental Assessment (Purpose) and not for any other purpose or use. To the extent permitted by applicable law, Urbis expressly disclaims all liability, whether direct or indirect, to the Instructing Party which relies or purports to rely on this report for any purpose other than the Purpose, and to any other person which relies or purports to rely on this report for any purpose whatsoever (including the Purpose). In preparing this report, Urbis was required to make judgements which may be affected by unforeseen future events, the likelihood and effects of which are not capable of precise assessment. All surveys, forecasts, projections and recommendations contained in or associated with this report are made in good faith and on the basis of information supplied to Urbis at the date of this report, and upon which Urbis relied. Achievement of the projections and budgets set out in this report will depend, among other things, on the actions of others over which Urbis has no control. In preparing this report, Urbis may rely on or refer to documents in a language other than English, which Urbis may arrange to be translated. Urbis is not responsible for the accuracy or completeness of such translations and disclaims any liability for any statement or opinion made in this report being inaccurate or incomplete arising from such translations. Whilst Urbis has made all reasonable inquiries it believes necessary in preparing this report, it is not responsible for determining the completeness or accuracy of information provided to it. Urbis (including its officers and personnel) is not liable for any errors or omissions, including in information provided by the Instructing Party or another person or upon which Urbis relies, provided that such errors or omissions are not made by Urbis recklessly or in bad faith. This report has been prepared with due care and diligence by Urbis and the statements and opinions given by Urbis in this report are given in good faith and in the reasonable belief that they are correct and not misleading, subject to the limitations above.

URBIS REP_101016_ALTON EDITION - RICHLANDS - RENTAL ASSESSMENT

DISCLAIMER

7


ESTIMATES OF ASSOCIATED FEES 'Alton Edition II' Richlands QLD

Lot

Estimated Stamp Estimated Stamp Estimated Stamp Duty Payable - Local Duty Payable Duty Payable - FOH Investor Overseas Investor

Body Corporate (p/a)

Council Rates Estimate (p/a)

Water Rates Estimate (p/a)

59

$14,265

$14,265

$26,835

$2,596

$1,700 - $2,000

$1,200

60

$14,265

$14,265

$26,835

$2,596

$1,700 - $2,000

$1,200

61

$14,265

$14,265

$26,835

$2,596

$1,700 - $2,000

$1,200

62

$14,265

$14,265

$26,835

$2,596

$1,700 - $2,000

$1,200

63

$14,265

$14,265

$26,835

$2,596

$1,700 - $2,000

$1,200

64

$14,265

$14,265

$26,835

$2,596

$1,700 - $2,000

$1,200

65

$14,265

$14,265

$26,835

$2,596

$1,700 - $2,000

$1,200

66

$14,265

$14,265

$26,835

$2,596

$1,700 - $2,000

$1,200

67

$14,226

$14,226

$26,766

$2,594

$1,700 - $2,000

$1,200

68

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

69

$14,341

$14,341

$26,971

$2,596

$1,700 - $2,000

$1,200

70

$14,341

$14,341

$26,971

$2,596

$1,700 - $2,000

$1,200

71

$14,341

$14,341

$26,971

$2,596

$1,700 - $2,000

$1,200

72

$14,341

$14,341

$26,971

$2,596

$1,700 - $2,000

$1,200

73

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

74

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

75

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

76

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

77

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

78

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

79

$14,226

$14,226

$26,766

$2,594

$1,700 - $2,000

$1,200

80

$13,957

$13,957

$26,287

$2,592

$1,700 - $2,000

$1,200

81

$14,111

$14,111

$26,561

$2,594

$1,700 - $2,000

$1,200

82

$14,341

$14,341

$26,971

$2,596

$1,700 - $2,000

$1,200

83

$14,111

$14,111

$26,561

$2,594

$1,700 - $2,000

$1,200

84

$13,957

$13,957

$26,287

$2,592

$1,700 - $2,000

$1,200

85

$14,034

$14,034

$26,424

$2,592

$1,700 - $2,000

$1,200

86

$14,034

$14,034

$26,424

$2,592

$1,700 - $2,000

$1,200

87

$13,957

$13,957

$26,287

$2,592

$1,700 - $2,000

$1,200

88

$14,226

$14,226

$26,766

$2,594

$1,700 - $2,000

$1,200

89

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

90

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

91

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

92

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

93

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

94

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

95

$14,226

$14,226

$26,766

$2,594

$1,700 - $2,000

$1,200

96

$14,111

$14,111

$26,561

$2,594

$1,700 - $2,000

$1,200

97

$14,111

$14,111

$26,561

$2,594

$1,700 - $2,000

$1,200

Body Corporate (p/a)

Council Rates Estimate (p/a)

Water Rates Estimate (p/a)

Lot

Estimated Stamp Estimated Stamp Estimated Stamp Duty Payable - Local Duty Payable Duty Payable - FOH Investor Overseas Investor

98

$14,111

$14,111

$26,561

$2,594

$1,700 - $2,000

$1,200

99

$14,111

$14,111

$26,561

$2,594

$1,700 - $2,000

$1,200

100

$14,111

$14,111

$26,561

$2,594

$1,700 - $2,000

$1,200

101

$14,111

$14,111

$26,561

$2,594

$1,700 - $2,000

$1,200

102

$14,226

$14,226

$26,766

$2,594

$1,700 - $2,000

$1,200


103

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

104

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

105

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

106

$14,226

$14,226

$26,766

$2,594

$1,700 - $2,000

$1,200

107

$14,226

$14,226

$26,766

$2,594

$1,700 - $2,000

$1,200

108

$14,226

$14,226

$26,766

$2,594

$1,700 - $2,000

$1,200

109

$14,111

$14,111

$26,561

$2,594

$1,700 - $2,000

$1,200

110

$14,111

$14,111

$26,561

$2,594

$1,700 - $2,000

$1,200

111

$13,957

$13,957

$26,287

$2,592

$1,700 - $2,000

$1,200

112

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

113

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

114

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

115

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

116

$14,149

$14,149

$26,629

$2,594

$1,700 - $2,000

$1,200

117

$14,149

$14,149

$26,629

$2,596

$1,700 - $2,000

$1,200

118

$14,226

$14,226

$26,766

$2,596

$1,700 - $2,000

$1,200

Disclaimer: Please note that the above, and enclosed information is subject to change at any time. At the time of preparation every care was taken to ensure this information was correct. This document does not form part of a Contract of Sale and should be used for informative purposes only. You should always peruse a Contract of Sale thoroughly before signing, to verify all pertinent facts prior to entering into a Contract of Sale.

1

Stamp Duty estimate derived from http://stampduty.calculatorsaustralia.com.au/stamp-duty-qld


MARKET OUTLOOK RICHLANDS With direct access to arterial road and public transport networks, Richlands’ connectivity has positioned it asa major growth precinct moving forward.

01 Walkability & Accessibility 02 Infrastructure & Population 03 Employment Growth 04 Residential Analysis 05 Rental Analysis Prepared exclusively for Azure September 2017

Top: Forest Lake; Left: Richlands train station; Right: St John's Anglican College


01 WALKABILITY & ACCESSIBILITY Richlands' premium transport networks have spurred large scale investment in the precinct. New residential development, commercial offices, industrial parks and community uses, are all within easy access. Located just 16 kilometres from the Brisbane CBD, Richlands has benefited significantly from the addition of recent infrastructure investment. This includes the Richlands Railway Station (completed in 2011), which has represented a driver for both population and employment in the precinct. Additional transport infrastructure includes access to the Centenary Highway and Ipswich and Logan Motorways, providing high connectivity in all directions and a convenient commute to the Brisbane CBD, Ipswich, Springfield, and the Gold Coast. Richlands’ recent development is likely attributed to key transport infrastructure connections, paired with local industrial and employment nodes, and a range of retail and leisure amenities. In addition to its employment and retail amenity, Richlands also is well-serviced by education infrastructure, with the Bremer Institute of TAFE and University of Southern Queensland (Springfield Campus) offering tertiary facilities, and Richlands East State School and Durack State School providing primary school facilities.

2

Market Outlook Richlands

19 18

05

11

12

03

Richlands

07

P ROG R

AD E S S RO

G OV

E

EN R NM

AD T RO


Entertainment, retail & dining

01 Richlands Plaza Shopping Centre

02 Inala Plaza

Brisbane CBD

Shopping Centre

03 Progress Corner Shopping Centre

04 Richlands Hotel 13 10

5 mins

09

08

05 Queensland Lions Club and Tavern Green space & recreation

06 AMF Bowling Centre 07 Queensland Lions Sports Complex

08 West Brisbane Tennis

06

01 Richlands Plaza

4 mins

16

5 mins

14

6 mins

15

9 mins

17

Woolworths Medical centre Business centre 24/7 gym

Centre

09 CJ Greenfield Sports Complex

10 Kev Hooper Memorial Park Infrastructure

11 Richlands train station 12 Richlands bus station 13 Archerfield airport Education

14 Richlands East 5 mins Inala Plaza

04

02

Woolworths Coles Target Aldi 74 specialty stores

State School

15 Durack State School 16 St Mark’s Catholic Primary School

17 Serviceton South State School Employment

18 Coca Cola Factory 19 Myer Supply Centre

Prepared exclusively for Azure

3


02 INFRASTRUCTURE & POPULATION Over recent years Richlands and its surrounds have experienced growth in the amount of infrastructure investment for both commercial and private sectors. Given the proximity of Richlands to the Brisbane CBD, major transport connections and logistic routes, along with the presence of significant industrial precincts, it is suggested that sustained infrastructure investment in the area is both likely, and necessary, for future growth.

RICHLANDS POPULATION GROWTH Between 2006 and 2016, Richlands recorded an average annual population growth of 399 residents per annum. The majority of this growth occurred with the announcement and development of the Richlands Railway Station in 2011. The new railway station increased accessibility to the Brisbane CBD and acted as a key driver in the residential development that has now occurred within the region. Based on the Office of Economic and Statistical Research (OESR) 2015 population projections, the most significant population growth for Richlands is predicted to occur between 2016 and 2026. Population growth over this period is expected to increase by 4.4 per cent, or approximately 994 new residents per annum. Furthermore, by 2036, Richlands population is expected to increase more than double to reach a total of 38,825 residents. This demonstrates an average annual growth of 3.8 per cent or 1,021 new residents per annum between 2016 and 2036. Richlands population estimates and projections 2006–2036 45,000 38,825

35,000 30,000 25,000 18,402

20,000 15,000 14,413 10,000

Forecast 1,021 new residents per annum

5,000 0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

Estimated & projected population

40,000

Period (annual)

Prepared by Urbis; Source: ABS Estimated Residential Population, OESR Population Projection 2015 Note: population data includes the suburbs of Richlands and Inala.

4

Market Outlook Richlands

Recent transport infrastructure investment has linked Richlands to Brisbane’s key employment nodes.

INFRASTRUCTURE INVESTMENT 01 Progress Road Shopping Centre $5.5 million – Approved A development application has been approved for a shopping centre containing approximately 3,500sq.m of retail space, showrooms, offices, restaurants and a medical centre at 225 Progress Road, Richlands. 02 Darra to Springfield Transport Corridor $1.27 billion – Complete Delivered in two stages, the Darra to Springfield Transport Corridor was a major transport upgrade for the Western Corridor region and has provided a major link between Richlands, the Western Corridor and Inner Brisbane, nurturing heightened development and accessibility for the region. The first stage involved Darra to Richlands road and rail upgrades and was completed in 2011 at a cost of $800 million. The second stage, which opened in December 2013 and cost $475 million, included a 9.5 kilometre rail line with new stations at Springfield and Springfield Central and an upgrade of the Centenary Highway between the Logan Motorway, Forest Lake and Springfield. 03 TransApex Road Network $10 billion – Complete TransApex was Brisbane City Council’s long-term plan to improve travel across Brisbane. The final infrastructure project, Legacy Way, was completed in June 2015. This system includes the Inner City Bypass, the Clem7 Tunnel, the Go Between Bridge, Legacy Way and Airportlink M7, which upon completion were connected, creating a highly sophisticated road system. The Clem7 Tunnel, AirportlinkM7 and Legacy Way connections provide the greatest benefit to Richlands and the greater western corridor region by creating fast tracks and links to key employment nodes, including the Brisbane CBD and Australia TradeCoast.


03 EMPLOYMENT NODES With a variety of industries, Richlands has experienced steady employment growth and positioned itself as a major employment node for the future. The top industries for the Richlands Catchment (comprising the suburbs of Richlands, Durack, Darra, Forest Lake and Wacol) include Manufacturing (15.3%), Health Care and

The Richlands Catchment is projected to generate more than 6,000 new jobs by 2031.

Social Assistance (11.4%) and Retail Trade (10.8%). The catchment has succeeded in attracting multinational firms including Coca-Cola Amatil, who were drawn to Richlands commercial infrastructure and logistical significance.

KEY EMPLOYMENT NODES Brisbane CBD, Spring Hill & Fortitude Valley 225,170 – 2016 277,548 – 2031 forecast

03 TransApex Road Network

52,378

New jobs 2016–2031 South Brisbane & West End 39,202 – 2016 58,941 – 2031 forecast

19,739

New jobs 2016–2031 Indooroopilly, Toowong & St Lucia 39,575 – 2016 49,546 – 2031 forecast

9,971

New jobs 2016–2031 Prepared by Urbis; Source: NIEIR Note: Richlands Catchment includes Richlands; Durack; Darra; Forest Lake & Wacol.

Richlands Catchment* Darra to Springfield Transport Corridor

02

30,863 – 2016 37,113 – 2031 forecast

Progress Road Shopping Centre

01

New jobs 2016–2031

6,250

Springfield 9,150 – 2016 17,000 – 2031 forecast

7,850

New jobs 2016–2031 Total employment growth 343,960 – 2016 440,148 – 2031 forecast

96,188

New jobs 2016–2031

Prepared exclusively for Azure

5


04 RESIDENTIAL ANALYSIS

The Richlands Catchment has recorded higher growth in comparison to the Brisbane LGA over the past 12 months.

RICHLANDS HOUSING MARKET

BRISBANE LGA HOUSING MARKET

Based on 125 transactions, the median house sale price within the Richlands Catchment (comprising the suburbs of Richlands, Forest Lake, Ellen Grove and Carole Park) registered $440,000 for the quarter ending June 2017. The suburb of Richlands recorded a median house sale price of $470,000 over the same period.

The Brisbane LGA median sale price for houses experienced a significant boom period between 2001 and 2008.

The median house sale price in the Richlands Catchment for quarterly period 12 months prior was $421,000, demonstrating a significant increase of 4.5 per cent over the past year. This growth is higher than that recorded for the wider Brisbane LGA which registered a growth of 4.1 per cent over the same period. This demonstrates strong demand for dwellings within the catchment. Similar to the Greater-Brisbane property market at the time, the Richlands Catchment registered its most significant growth between 2002 and 2007. Increases in house price and the number of transactions in the 2003/04 period is linked to the settlement of new projects in the area. This also was shown between the 2007/08 period. This pattern generally highlights a demand for new housing product. With the rising cost of housing within the Richlands Catchment and the Greater-Brisbane market, townhouses continue to emerge as a new yet affordable alternative to houses for both owner-occupiers and investors who are looking to enter into a suburb offering proximity to employment and lifestyle needs, along with key local amenities.

$300,000

150

$200,000

100

$100,000

50 0

$0

Period (quarterly) Prepared by Urbis; Source: APM PriceFinder

6

Market Outlook Richlands

number of sales

median sale price

$800,000 $700,000 $669,500 $600,000

6,000 5,000

$500,000

4,000

$400,000

3,000

$300,000

2,000

$200,000

1,000

$100,000

0

$0

Period (quarterly)

Prepared by Urbis; Source: APM PriceFinder

Median sale price ($)

200

7,000

Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17

250

Market activity within the Richlands Catchment is expected to gain momentum as it is situated within the growing western precinct. Demand for housing product within the Richlands Catchment will continue to increase as it remains a more affordable housing option compared to the increasing median house price of the Brisbane LGA. This demand will be supported by continued infrastructure investment in transport connectivity and lifestyle amenity.

Number of transactions

300

$500,000 $440,000 $400,000

Median sale price ($)

median sale price

Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17

Number of transactions

number of sales

The Brisbane LGA median sale price for houses in the June 2017 quarter was recorded at $669,500. This was based on 3,694 settled transactions. This shows growth of 4.1 per cent over the previous 12 months and long-term price growth of 5.0 per cent per annum for the 10-year period ending June 2017.

Brisbane LGA house sales cycle June 1997 – June 2017

Richlands Catchment house sales cycle June 1997 –June 2017 350

This was followed by a decline during the Global Financial Crisis from 2008. House prices have since recovered and are now well above the 2007/08 peak as purchasers return to the market, supported by growing confidence and employment security, coupled with a low interest rate environment.


05 RENTAL ANALYSIS

New townhouses within the Richlands Catchment demonstrate a rental premium of 5.7 per cent per week over existing stock.

Richlands’ increasing accessibility to significant infrastructure, amenity, and both local and major employment nodes positions it as a key residential growth area within Brisbane’s western suburbs. On-the-market rental data, which records advertised and achieved rents for new and near-new residential product, indicates three-bedroom townhouses in the Richlands Catchment are attracting a premium over existing stock. This indicates a demand for new residential dwellings within the catchment. With a focus on semi-detached and townhouse product in the Richlands Catchment (comprising the suburbs of Richlands, Forest Lake, Ellen Grove and Carole Park), new and near-new three-bedroom townhouses registered a median weekly rent of $370. This demonstrates a premium of 5.7 per cent per week over existing townhouse stock. This premium highlights the value potential tenants attach to new product with modern facilities, low maintenance and surrounding amenities.

Recently settled four-bedroom townhouses are achieving significant premiums of up to 14.3 per cent, over the established townhouse market. Furthermore, over the past five years to June 2017, the Richlands Catchment has experienced steady rental growth, with an average annual growth rate of 0.3 per cent for threebedroom townhouses. Additional analysis of the Richlands Catchment rental market shows three-bedroom townhouses have recorded a 19 per cent increase in bond lodgements over the past 12 months to June 2017, based on the half-year period. The catchment has also experience a substantial increase of 54 per cent over the past three years. This illustrates a growing demand for rentals within the Richlands Catchment as the western corridor expands and develops. Looking forward, potential capital growth offered by strong connectivity, continuing infrastructure investment, paired with the suburb’s increasing demand, is likely to drive potential investment opportunity in Richlands.

New rental product vs existing rental product Richlands Catchment June 2017

New & near-new product – Richlands Catchment1

$370

5.7% premium Established product – Richlands Catchment2

$350

LIMITED SUPPLY OF NEW FOUR-BEDROOM TOWNHOUSES WITHIN THE CATCHMENT, RESULTING IN INCREASED DEMAND AND HIGH RENTAL RETURNS Total bond lodgement growth Richlands Catchment June half-year 2017

19% growth

54% growth

1-year

3-year

Includes suburbs of Richlands, Forest Lake, Ellen Grove and Carole Park 2 Includes suburbs of Richlands, Doolandella, Durack and Inala. Prepared by Urbis; Source: Residential Tenancies Authority (RTA), Realestate.com.au 1

3-bedroom townhouses Prepared by Urbis; Source: Residential Tenancies Authority (RTA)

Prepared exclusively for Azure

7


BRISBANE GOLD COAST MELBOURNE PERTH SYDNEY CISTRI — SINGAPORE cistri.com

BRISBANE GOLD COAST MELBOURNE PERTH SYDNEY This publication is prepared on the instruction of Azure and is not suitable for use other than by the party to whom it is addressed. As the publication involves projections and assumptions it can be affected a number of unforeseen variables. The forecasts and assumptions are a prediction and whilst Urbis has made every effort to ensure that the forecasts and assumptions CISTRI —bySINGAPORE are based on reasonable information, they may be affected by assumptions that do not necessarily eventuate or by known, or unknown, risks and uncertainties. It should be noted that past performance is not necessarily a reliable indication of future performance. The information in the publication does not represent financial advice and should not be regarded as such. It has been prepared without taking into account your financial situation or investment objectives. You should consider the appropriateness of the information in regards to your current financial situation or needs. Urbis accepts no responsibility for the accuracy or completeness of any such material. The information is subject to change without notice and Urbis is under no obligation to update the information or correct any assumptions which may change over time. This study has been prepared for the sole use of Azure and is not to be relied upon by any third party without specific approval from Urbis. This publication is subject to copyright. Except as permitted under the Copyright Act 1968, no part of it may, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) be reproduced, stored in a retrievals system or transmitted without prior written permission. Enquires should be addressed to the publishers.

EMR0900/B

cistri.com


Nyko Property - Melbourne Alton Edition II, Richlands QLD 4 Bed, 2.5 Bath, 2 Car Townhouse

07-Mar-2018

Prepared for: Consultant: Property: Alton Edition II, Richlands QLD Description: 4 Bed, 2.5 Bath, 2 Car Townhouse SUMMARY Assumptions Property value Investment Gross yield Net yield Growth rate Inflation rate Interest rate Taxable income

$419,000 $0 4.99% 3.22% 4.00% 3.00% 4.75% $80,000

Projected results over Property value Equity After-tax return /yr Net present value IF SOLD Selling costs & CGT Equity After-tax return /yr

10 yrs $620,222 $185,457 80.70% $149,311 $70,361 $115,097 73.72%

COMPUTER PROJECTIONS Investment Analysis End of year Property value Purchase costs Investments Loan amount Equity Capital growth rate Inflation rate (CPI) Gross rent /week Cash deductions Interest (I/O) Rental expenses Pre-tax cash flow Non-cash deductions Deprec.of building Deprec.of fittings Loan costs Total deductions Tax credit (single) After-tax cash flow Rate of return (IRR) Pre-tax equivalent

2018 $419,000 $15,265 $0 $434,765 $-15,765 4.00% 3.00% $410

1yr 435,760

Projections over 10 years 2yr 3yr 5yr 453,190 471,318 509,778

10yr 620,222

434,765 995 4.00% 3.00% 20,894

434,765 18,425 4.00% 3.00% 21,938

434,765 36,553 4.00% 3.00% 23,035

434,765 75,013 4.00% 3.00% 25,396

434,765 185,457 4.00% 3.00% 32,413

4.75% 34.78% $0

20,651 7,415 -7,172

20,651 7,637 -6,350

20,651 7,866 -5,482

20,651 8,345 -3,600

20,651 9,675 2,087

2.50% $0 $500

5,762 5,403 100 39,331 6,437 -735

5,762 5,762 5,762 5,442 3,903 2,593 100 100 100 39,592 38,283 37,452 6,120 5,261 4,296 -230 -221 696 Your income /(cost) per week (4) (4) 13

5,762 490

$80,000 $0 80.70% 123.20%

(14)

36,578 1,624 3,711 71

Disclaimer: Note that the computer projections listed above simply illustrate the outcome calculated from the input values and the assumptions contained in the model. Hence the figures can be varied as required and are in no way intended to be a guarantee of future performance. Although the information is provided in good faith, it is also given on the basis that no person using the information, in whole or in part, shall have any claim against Nyko Property - Melbourne, its servants, employees or consultants. This information is intended as general advice only and does not take account of individual needs or financial circumstances. Intending purchasers should do their own assessment or consult a licensed investment adviser. .


Page 2 Detailed Notes on Spreadsheet Items PROPERTY VALUE The property (or market) value refers to how much the property is worth (i.e. how much you could sell it for). Its book value, on the other hand, refers to how much you have paid for it plus the cost of any immediate renovations. Property price: Renovation costs: Total book value: Property market value:

419,000 0 419,000 $419,000

PURCHASE COSTS These include your solicitor's conveyancing fees and, where applicable, State Government stamp duty and transfer of title fees. In Australia, stamp duty and transfer of title fees vary from State to State and are a function of purchase price whereas, in New Zealand, stamp duty has been abolished on all property transfers since May 1999. Conveyancing costs may also be dependent on purchase price and may be negotiable. In some States of Australia (e.g. A.C.T.), purchase costs are tax deductible in the first year of the investment, though normally they will only be taken into account in Capital Gains Tax calculations in the year of sale.

Conveyancing costs: Stamp duty: Total Purchase costs:

1,000 14,265 $15,265

INVESTMENT & LOAN Your initial investment is usually just the total of all monies outlayed at the time of purchase. These may include contributions toward any, or all, of the costs listed below. The remainder will largely determine the size of the loan. If you have sufficient equity in other property, it is possible to outlay nothing, and actually borrow the lot (i.e. the purchase price, purchase costs, loan costs, any renovation costs, and even additional monies to cover such things as fittings). If you are modelling an investment from some point in time after purchase (e.g. to assess the return on major renovations), your investment might also include the equity you already have built up in the property.

Property costs: Renovation costs: Purchase costs: Furniture costs: Loan costs: Totals:

Investments 0 0 0 0 0 $0

Loan 419,000 0 15,265 0 500 $434,765

Total Cost 419,000 0 15,265 0 500 $434,765

CAPITAL GROWTH & INFLATION RATES Rate of capital growth is your anticipated annual compound rate of increase of the property value. It will undoubtedly vary substantially over the short term, but over the longer term (10 years or more), it has generally been about 2 to 3% above the rate of inflation. Average rate of inflation (%): Average rate of capital growth (%):

3.00 4.00


Page 3 EQUITY The equity is the difference between the property value and the loan. The equity increases in line with the increasing property value in the case of an interest-only loan. For a principal & interest loan, it also increases with the decrease in the debt. Projected values over Property value Loan EQUITY

5 yrs 509,778 434,765 $75,013

10 yrs 620,222 434,765 $185,457

15 yrs 754,595 434,765 $319,830

20 yrs 918,081 434,765 $483,316

Approximate costs if sold...... Capital Gains Tax Solicitor's fees Sales commission EQUITY (after sale)

21,082 2,549 11,941 $39,440

52,889 3,101 14,371 $115,097

92,346 3,773 17,327 $206,384

138,812 4,590 20,924 $318,990

INTEREST COSTS & TYPE OF LOAN The type of loan can be either interest-only and/or principal & interest. Repayments for interest-only loans, as the title suggests, consist of interest only. Repayments for principal & interest loans include a component of the principal. Interest-only loans are usually of a shorter term (e.g. 3 to 5 years) at which time they are usually rolled-over.

Loan type: Interest rate (yr 1) (%) Loan: Loan costs (written off over 5 yrs): Monthly payment: Annual payment:

I/O Yrs 1-40 4.75 $434,765 $500 $1,721 $20,651

RENT The potential annual rent is simply the rent per week times 52. The actual annual rent must account for any period that the property is vacant. Annual rents are assumed to increase in line with inflation.

Rent per week: Potential annual rent: Vacancy rate (%): Actual annual rent:

410 21,320 2.00 $20,894

ANNUAL RENTAL EXPENSES These are all the real operating costs associated with the investment property with the exception of loan interest payments. The first cell of the spreadsheet represents the expenses expressed as a percentage of the potential annual rent. As a guide, expenses could vary anywhere from 13% to 30%, depending on the maintenance and whether a professional property management agent is used. For holiday letting, with higher vacancies, the percentage can be more than 50%.

Normal Expenses: Agent's commission (7.70%): Letting fees: Rates: Insurance: Body corporate: Special expenses: Total expenses: Normal expenses as % of annual rent (%): Net yield or Capitalisation rate (%):

1,609 410 2,200 600 2,596 0 $7,415 34.78 3.22


Page 4 PRE-TAX CASH FLOW These are all of the monies that flow out of your pocket before tax is taken into account. Normally, it would represent the gross annual rent less interest and rental expenses. This will vary if interest or expenses are capitalised or rents used directly to reduce the loan. Year Rent Cash invested Principal payments Interest Expenses Pre-tax cash flow

0

$0

1yr 20,894 0 0 20,651 7,415 $-7,172

2yr 21,938 0 0 20,651 7,637 $-6,350

3yr 23,035 0 0 20,651 7,866 $-5,482

5yr 25,396 0 0 20,651 8,345 $-3,600

10yr 32,413 0 0 20,651 9,675 $2,087

DEPRECIATION ON THE BUILDING This represents the capital allowance on the construction costs. Property value: Construction costs: Depreciation allowance rate (%): Depreciation allowance:

$419,000 $230,478 2.50 $5,762

DEPRECIATION OF FITTINGS (annual claim) Total value of fittings: Total depreciation in first year:

$0 $5,403

LOAN COSTS In Australia, the loan costs are written off over the term of the loan (or five years, whichever is the lesser). Other loan costs: Total loan costs:

500 $500

TOTAL TAX DEDUCTIONS (Cash & Non-Cash Deductions) These include both "cash" (e.g. interest, rental expenses) and "non-cash" (e.g. depreciation) deductions. Year Interest Expenses Deprec.-building Deprec.-fittings Loan costs Total deductions

1yr 20,651 7,415 5,762 5,403 100 $39,331

2yr 20,651 7,637 5,762 5,442 100 $39,592

3yr 20,651 7,866 5,762 3,903 100 $38,283

5yr 20,651 8,345 5,762 2,593 100 $37,452

10yr 20,651 9,675 5,762 490 0 $36,578

TAX CREDITS & AFTER-TAX CASH FLOW The after-tax cash flows are all of the monies that flow in or out of your pocket AFTER tax is taken into account. They represent the PRE-tax cash flow LESS any tax credits (or tax refunds). In this analysis, it is assumed that the investor has obtained a tax variation from the Taxation Office and thus the tax refunds are credited for the same year in which they are based.

Year Pre-tax cash flow Tax credits After-tax cash Income /(cost) per week

2018 0 0

1yr -7,172 6,437 -735 (14)

2yr -6,350 6,120 -230 (4)

3yr -5,482 5,261 -221 (4)

5yr -3,600 4,296 696 13

10yr 2,087 1,624 3,711 71


Page 5 INTERNAL RATE OF RETURN The internal rate of return (IRR) is the method of calculating the return on a series of cash flows where the time factor is taken into account. To understand it, think of the money you are outlaying on your investment property as being deposited in a bank account, with interest added each year. In this case the "deposits" are represented by the after-tax cash flows

Year After-tax cash flow Equity

2018 $0

1yr $-735

2yr $-230

3yr $-221

5yr $696

10yr $3,711 $185,457

The total amount in your "account" (including interest) at the end of the period is the equity ($185,457) in the investment property. The IRR (80.70%) represents the effective "interest rate" that you have received, but with one important difference - because the interest remains in the property, it is not taxed. To receive an equivalent return from bank interest, you need to get 123.20% before tax. If the property were to be sold at the end of the period, the after-sale equity would be reduced to $115,097 after taking account of selling costs and capital gains tax and the IRR after the sale would be 73.72%. TAX BENEFITS These are shown below for the given taxable incomes and are based on the specified tax scale.

Number of properties: 1

Current taxable income: Rental income: Total income: Rental deductions: New taxable income:

Investor 80,000 20,894 100,894 39,331 61,563

Current tax (on 80,000): New tax (on 61,563): Tax saving:

19,147 12,710 6,437

Total tax credits:

$6,437


Page 6

4 Bed, 2.5 Bath, 2 Car Townhouse Who pays the cost (1st year)?

74% Tenant 3% You

23% Taxman

Projections over 25 years Year

1yr 2yr 3yr 4yr 5yr 6yr 7yr 8yr 9yr 10yr 11yr 12yr 13yr 14yr 15yr 16yr 17yr 18yr 19yr 20yr 21yr 22yr 23yr 24yr 25yr

Principal payments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Interest costs

Rental expenses

Total cost

Rent (tenant)

Tax credit (taxman)

$20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651 $20,651

$7,415 $7,637 $7,866 $8,102 $8,345 $8,596 $8,854 $9,119 $9,393 $9,675 $9,965 $10,264 $10,572 $10,889 $11,215 $11,552 $11,898 $12,255 $12,623 $13,002 $13,392 $13,794 $14,207 $14,634 $15,073

$28,066 $28,289 $28,518 $28,754 $28,997 $29,247 $29,505 $29,771 $30,044 $30,326 $30,616 $30,915 $31,223 $31,540 $31,867 $32,203 $32,550 $32,907 $33,274 $33,653 $34,043 $34,445 $34,859 $35,285 $35,724

$20,894 $21,938 $23,035 $24,187 $25,396 $26,666 $27,999 $29,399 $30,869 $32,413 $34,033 $35,735 $37,522 $39,398 $41,368 $43,436 $45,608 $47,889 $50,283 $52,797 $55,437 $58,209 $61,119 $64,175 $67,384

$6,437 $6,120 $5,261 $4,659 $4,296 $3,876 $3,375 $2,755 $2,231 $1,624 $914 $367 $-209 $-818 $-1,458 $-2,133 $-2,845 $-3,596 $-4,386 $-5,219 $-6,096 $-7,021 $-7,995 $-9,101 $-10,782

Cash (you) $735 $230 $221 $-92 $-696 $-1,295 $-1,870 $-2,384 $-3,056 $-3,711 $-4,331 $-5,187 $-6,090 $-7,040 $-8,043 $-9,100 $-10,213 $-11,386 $-12,623 $-13,925 $-15,298 $-16,743 $-18,265 $-19,789 $-20,878


Page 7

4 Bed, 2.5 Bath, 2 Car Townhouse

(%)

Who pays the costs (10 years)

100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 0

1

2

3

4

5

6

7

8

Year from purchase Tenant (87%) Taxman (13%) You (0%)

Average contribution (10 years)

87% Tenant

13% Taxman

9

10


Page 8

4 Bed, 2.5 Bath, 2 Car Townhouse ($) 2.000m

Investment Property Value & Debt

1.500m

1.000m

500,000

0 0

5

10

15

20

25

Year from purchase Value

Debt

Property value & debt projections over 25 years Year

Growth rate

1yr 2yr 3yr 4yr 5yr 6yr 7yr 8yr 9yr 10yr 11yr 12yr 13yr 14yr 15yr 16yr 17yr 18yr 19yr 20yr 21yr 22yr 23yr 24yr 25yr

4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%

Property value $419,000 $435,760 $453,190 $471,318 $490,171 $509,778 $530,169 $551,375 $573,430 $596,368 $620,222 $645,031 $670,832 $697,666 $725,572 $754,595 $784,779 $816,170 $848,817 $882,770 $918,081 $954,804 $992,996 $1.033m $1.074m $1.117m

Amount owing $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765 $434,765

Equity $-15,765 $995 $18,425 $36,553 $55,406 $75,013 $95,404 $116,610 $138,665 $161,603 $185,457 $210,266 $236,067 $262,901 $290,807 $319,830 $350,014 $381,405 $414,052 $448,005 $483,316 $520,039 $558,231 $597,951 $639,259 $682,220


Page 9

4 Bed, 2.5 Bath, 2 Car Townhouse $/week 600

Average Projected Weekly Cash Flow & Equity Growth

400 200 0 -200 -400 -600 Cash in

Cash out

Cash net

Investment Cash Flow

Property

Loan

Equity

Investment Growth

Comparison of projected weekly investment cash flows and growth rates (10 years) In simple terms, this report compares what you put in to the investment with what you might expect to get out. The net after-tax cash flow represents your cash contribution to the investment while the growth in equity represents your increase in net wealth as a result of that investment. For ease of understanding, these figures are presented as weekly averages over the projected period specified (10 years), but will therefore be dependent on the assumptions made in relation to capital growth, inflation and interest rates over that period..

The net after-tax cash flow is the difference between the cash you receive (or save) as a result of the investment (rental income and tax credits) and the cash you pay out (any lump sum cash outlay, principal loan payments, loan interest payments and rental expenses). If any of these items are internalised in the investment loan, they will not appear in the cash flow but will instead impact on the amount owing in the loan. The growth in equity over the projected period will reflect the changes in property value and the loan over the same time frame. In the simple case of an interest-only loan, the loan amount will stay constant and the growth in equity will be the same as the growth in property value. In the current example, the average net after-tax cash flow is $23 per week while the average equity growth is $387 per week. INVESTMENT CASH FLOW Cash In Rental income Tax credits Total Cash Out Cash outlays Principal payments Interest payments Rental expenses Total Net After-Tax Cash Flow

Total (10 years) 262,797 40,634 303,431

Average (per week)

584

0 0 206,513 85,002 291,515

561

11,916

23


Page 10 INVESTMENT GROWTH

Property value Loan amount Equity

Initial

10 yrs

Change

419,000 434,765 -15,765

620,222 434,765 185,457

201,222 0 201,222

Average (per week) 387 0 387


Alton Edition II Richlands QLD - Nyko Project Information Report  
Alton Edition II Richlands QLD - Nyko Project Information Report