Maddison Gardens - Cranbourne by Bill Nikolouzakis

MADDISON GARDENS 980 CRANBOURNE-FRANKSTON ROAD CRANBOURNE VIC

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 Propertyâ&#x20AC;&#x2122;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 Propertyâ&#x20AC;&#x2122;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. June 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

MADDISON GARDENS NYKO PROJECT INFORMATION REPORT

SECTION 1.

PROJECT SUMMARY CORELOGIC RP DATA SUBURB STATISTICS REPORT

THIRD PARTY VALIDATION Nyko Propertyâ&#x20AC;&#x2122;s Third

LOOKING AHEAD

Party Validation is made up of independent

FLOOR PLANS

SPECIFICATIONS

ASSOCIATED FEES

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

PROPERTY INVESTMENT CASH FLOW ANALYSIS

1. Value 2. Yield

*3RD PARTY VALIDATION 8.

RENTAL APPRAISALS*

INDICATIVE TAX DEPRECIATION SCHEDULE *

10.

VALUATION*

3. Tax

PROJECT SUMMARY THE DEVELOPMENT Address

980 Cranbourne-Frankston Road, Cranbourne, Victoria

Type

Townhouses

Number for sale

Stage 3 – 16 Blocks

Number of levels

2 Levels

Level access

Stairs

THE APARTMENTS Townhouse mix

3 Bedroom, 2 Bathroom, 2 Car

FURTHER INFORMATION Local council

City of Casey

Zoning (reference)

Residential

Title (reference)

Freehold

Heritage status

N/A

Deposit

10% payable by EFT

Estimated Owners Corporation Fee

$1,080.00⁺ (p/a)

Compound Annual Growth Rate (House)

6.00%

Proposed rental yield

4.7%

Medium Rent

$450.00

Vacancy Rate

0.96%*

Estimated Build Start Date

May 2019⁺

Estimated Build Completion Date:

December 2019⁺

* as at 31/01/2019

⁺Please note these dates and/or figures are subject to change

PROXIMITIES * Distance from CBD

45 Minutes to Melbourne CBD

Direction from CBD

South East

Neighbouring suburbs

Cranbourne West, Cranbourne North, Lyndhurst, Clyde North, Cranbourne East, Cranbourne South, Skye

Distance from Airport

60 minutes to Tullamarine Airport

Recreational

1.8km to Ranfurlie Golf Club 3.4km to Cranbourne Racecourse & Recreation Reserve 12km to Seaford Beach 15km to Frankston Pier and Beach

TRANSPORT * Public Transport

Train – 3.2km to Cranbourne Train Station *Train Upgrades: Planned upgrades and extending the train line from Cranbourne to Clyde, creating two new stations at Cranbourne East and Clyde. Bus – 55m to St Peters College Bus Stop

SHOPS * Supermarkets & Shopping Centre

1.5km to Coles Cranbourne West 2.6km to Cranbourne Park Shopping Centre 9.4km to Casey Central Shopping Centre

SCHOOLS * Childcare

450m to Pebble Patch Early Learning Centre 3.3km to Cranbourne Day Care & Kindergarten Centre 5.7km to One Early Education Group 6.3km to Bluebird Early Education Cranbourne

Primary & Secondary

55m to St Peters College 2.0km to Barton Primary School 3.3km to Cranbourne Park Primary School 3.7km to Cranbourne Primary School 6.0km to Cranbourne East Secondary College

Tertiary

13.0km to Monash University Peninsula Campus

MEDICAL * General Practitioners & Hospitals

220m to Supreme Dental Cranbourne 3.1km to Casey Medical Centre Cranbourne 4.6km to Cranbourne East Medical Centre 6.3km to Broad Oak Medical Dental 14.0km to Frankston Hospital

*Referenced from Google Maps & DaftLogic.com

BUILDER PROFILE

COMPLETED PROJECTS Since 2006, we have acquired, repositioned and developed over $300 million in properties nationwide spanning approximately 240,000 square meters of building. Our portfolio is diverse, comprising of luxury owner occupied homes, investment townhouse stock, industrial, office, and mixed use properties.

CURRENT PROJECTS Residential

Our major projects completed over the past 3 years are listed below. Bennett Williams project brochures are available on request.

• 80 Devon Road Oak Park: 16 Townhouses now complete. 82 Apartments about to commence construction

• 980 Cranbourne Road Cranbourne: 80 now complete. 82 townhouses to be constructed 2019 – 2020 • 120 Cardinia Road Officer: 77 Townhouses. 55 built and handed over. 22 to be constructed 2019 • 179 Pound Road Hampton Park: 56 townhouses to be built 2019 – 2020 • 1 Quail Place Langwarrin: 5 lot boutique sub division. • 2 Kingsley Grove Mount Waverley: 4 Large Luxury Homes • 6 Seventh Avenue Chelsea Heights: 4 Villa homes • 24A & 24B Bass Street Flinders: 2 High End $3,000,000+ luxury homes • 13 King Street Flinders: 2 High End Luxury homes • Tara Drive Frankston South: High end villa development • 74 – 76 Hall Road Carrum Downs: 10 Townhouses near completion

Barkly Street Mornington: 48 Luxury townhouses Maddison Gardens Cranbourne: 80 townhouses Bonnie View Road Croydon: 5 Luxury townhouses Carrum Downs: 29 houses Skye: 14 houses Parkview Estate Officer: 55 townhouses Clyde 370 lot sub division Clyde 780 lot subdivision

â&#x20AC;&#x153;To create spaces that inspire and fulfil peoples livesâ&#x20AC;?

Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Suburb Statistics Report

Prepared on 08 Jan 2019 Bill Nikolouzakis Mob: 0421731783 Email: info@nykoproperty.com.au

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Area Profile The size of Cranbourne is approximately 16.5 square kilometres. It has 34 parks covering nearly 25.6% of total area. The population of Cranbourne in 2011 was 18,621 people. By 2016 the population was 20,090 showing a population growth of 7.9% in the area during that time. The predominant age group in Cranbourne is 0-9 years. Households in Cranbourne are primarily couples with children and are likely to be repaying $1400 - $1799 per month on mortgage repayments. In general, people in Cranbourne work in a trades occupation. In 2011, 69.2% of the homes in Cranbourne were owner-occupied compared with 66.2% in 2016. Currently the median sales price of houses in the area is $545,000.

Median Sales Price Year 2014 Period January February March April May June July August September October November December

Median Price $317,500 $317,250 $320,000 $320,000 $320,000 $320,000 $325,000 $325,000 $330,000 $330,000 $330,000 $330,250

Year 2015 Median Price $330,550 $335,000 $335,000 $337,050 $340,000 $340,000 $340,000 $342,650 $345,000 $345,500 $350,000 $355,000

Year 2016 Median Price $360,000 $363,500 $365,000 $366,857 $370,200 $377,000 $380,000 $385,000 $386,750 $393,478 $400,000 $405,000

Year 2017 Median Price $410,000 $418,000 $421,000 $429,950 $435,000 $445,000 $455,100 $470,000 $480,000 $490,000 $500,650 $511,000

Year 2018 Median Price $520,000 $525,000 $530,000 $535,250 $540,000 $540,000 $545,000 $542,500 $545,000 n/a n/a n/a

Statistics are calculated over a rolling 12 month period

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Median Sales Price

Median Sales Price vs Number Sold

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Recent Median Sale Prices Recent Median Sale Prices (House)

Period September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017

Cranbourne

Casey

Median Price

$545,000 $542,500 $545,000 $540,000 $540,000 $535,250 $530,000 $525,000 $520,000 $511,000 $500,650 $490,000

$605,000 $602,000 $600,000 $600,000 $599,000 $593,000 $586,000 $580,000 $570,000 $561,500 $551,375 $545,000 Statistics are calculated over a rolling 12 month period

Recent Median Sale Prices (House)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Recent Median Sale Prices (Unit)

Period September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017

Cranbourne

Casey

Median Price

$386,500 $385,000 $381,000 $380,500 $380,000 $370,500 $370,000 $365,000 $360,000 $356,500 $350,500 $341,000

$430,000 $430,000 $431,000 $430,000 $429,000 $421,750 $420,000 $415,000 $410,111 $409,000 $402,250 $400,000 Statistics are calculated over a rolling 12 month period

Recent Median Sale Prices (Unit)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Recent Median Sale Prices (Land)

Period September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017

Cranbourne

Casey

Median Price

$557,500 $565,000 $557,500 $590,000 $590,000 $485,050 $370,000 $389,900 $379,400 $370,000 $336,500 $317,500

$350,000 $347,500 $345,000 $340,000 $335,000 $326,000 $320,000 $310,000 $303,000 $299,000 $295,000 $288,000 Statistics are calculated over a rolling 12 month period

Recent Median Sale Prices (Land)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Sales Per Annum Sales Per Annum (House) Cranbourne Period Ending Sep 2018 Sep 2017 Sep 2016 Sep 2015 Sep 2014 Sep 2013 Sep 2012 Sep 2011 Sep 2010 Sep 2009

Number 346 411 384 387 340 267 276 340 344 365 Statistics are calculated over a rolling 12 month period

Sales Per Annum (House)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Sales Per Annum (Unit) Cranbourne Period Ending Sep 2018 Sep 2017 Sep 2016 Sep 2015 Sep 2014 Sep 2013 Sep 2012 Sep 2011 Sep 2010 Sep 2009

Number 82 84 106 78 62 79 65 40 63 84 Statistics are calculated over a rolling 12 month period

Sales Per Annum (Unit)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Sales Per Annum (Land) Cranbourne Period Ending Sep 2018 Sep 2017 Sep 2016 Sep 2015 Sep 2014 Sep 2013 Sep 2012 Sep 2011 Sep 2010 Sep 2009

Number 14 46 68 25 22 29 74 80 39 56 Statistics are calculated over a rolling 12 month period

Sales Per Annum (Land)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Sales By Price Sales By Price - 12 months (House) Cranbourne Price $200K-$400K $400K-$600K $600K-$800K $800K-$1M

Number 4 249 82 10 Statistics are calculated over a rolling 12 month period

Sales By Price - 12 months (House)

Sales By Price - 12 months (Unit) Cranbourne Price $200K-$400K $400K-$600K $600K-$800K

Number 48 33 1 Statistics are calculated over a rolling 12 month period

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Sales By Price - 12 months (Unit)

Sales By Price - 12 months (Land) Cranbourne Price $200K-$400K $400K-$600K $600K-$800K $800K-$1M >$2M

Number 2 7 1 2 2 Statistics are calculated over a rolling 12 month period

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Sales By Price - 12 months (Land)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Change in Median Price Change in Median Price (House)

Period Sep 2018 Sep 2017 Sep 2016 Sep 2015 Sep 2014 Sep 2013 Sep 2012 Sep 2011 Sep 2010 Sep 2009

Cranbourne

Casey

% Change

13.54% 24.11% 12.1% 4.55% 3.94% 1.03% -4.77% 3.12% 16.36% 3.11%

12.94% 16.45% 10.31% 5.57% 3.67% 2.42% -2.11% 3.26% 13.23% 8.33% 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: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Change in Median Price (Unit)

Period Sep 2018 Sep 2017 Sep 2016 Sep 2015 Sep 2014 Sep 2013 Sep 2012 Sep 2011 Sep 2010 Sep 2009

Cranbourne

Casey

% Change

15.37% 19.64% -0.44% 10.29% -1.92% 8.33% -5.33% 4.75% 9.5% 7.2%

9.69% 10.42% 3.8% 10.32% 3.33% 1.69% -4.84% 3.33% 13.21% 10.42% Statistics are calculated over a rolling 12 month period

Change in Median Price (Unit)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Change in Median Price (Land)

Period Sep 2018 Sep 2017 Sep 2016 Sep 2015 Sep 2014 Sep 2013 Sep 2012 Sep 2011 Sep 2010 Sep 2009

Cranbourne

Casey

% Change

120.79% 17.44% -36.11% 81.84% 5.14% -4.61% -4.9% 2.11% 23.78% 5.86%

24.11% 17.5% 6.67% 4.7% 4.47% -3.2% -3.41% 12.82% 10.48% 5.69% Statistics are calculated over a rolling 12 month period

Change in Median Price (Land)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Household Household Structure

Type Couples with Children Childless Couples Single Parents Other

Percent 46.6 29.4 21.8 2.1 Statistics are provided by the Australian Bureau of Statistics (ABS)

Household Structure

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Household Occupancy

Type Purchaser Renting Owns Outright Not Stated Other

Percent 42.8 30.1 23.4 3.3 0.5 Statistics are provided by the Australian Bureau of Statistics (ABS)

Household Occupancy

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Age Sex Ratio Age Sex Ratio Cranbourne Age Group 0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-99 100+

Male % 7.8 6.5 7.5 7.4 6.9 6.0 4.6 2.3 0.9 0.1 n/a

Casey Female %

7.4 6.1 7.1 7.5 6.6 6.3 5.0 2.6 1.2 0.3 n/a

Male % 8.1 7.2 6.9 7.7 7.1 5.9 3.9 2.1 0.8 0.1 0.0

Female % 7.6 6.8 6.8 8.0 7.2 6.0 4.1 2.2 1.1 0.3 0.0

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: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@nykoproperty.com.au

Household Income Household Income

Income Range 0-15.6K 15.6-33.8K 33.8-52K 52-78K 78-130K 130-182K 182K+

Cranbourne % 4.1 14.0 16.0 20.3 23.8 7.5 3.4

Casey % 3.2 9.8 13.0 17.3 27.6 12.0 7.0

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

Household Income

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: 611300720315 Fax: +61 (3) 8080 5943 Email: bill@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. The State of Victoria owns the copyright in the Property Sales Data and reproduction of that data in any way without the consent of the State of Victoria will constitute a breach of the Copyright Act 1968 (Cth). The State of Victoria does not warrant the accuracy or completeness of the Property Sales Data and any person using or relying upon such information does so on the basis that the State of Victoria accepts no responsibility or liability whatsoever for any errors, faults, defects or omissions in the information supplied.

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Maddison Gardens 980 Cranbourne-Frankston Road, Cranbourne VIC 3977 â&#x20AC;&#x201C; Stage 3 39 double storey, 3 bedroom residences Over an acre of public park in Stage 3 with beautiful retained established trees Modern architecturally designed homes with stone kitchen benchtops Six star energy efficiency Well designed floor plans to maximise space and liveability Lock up garage with remote Family friendly spaces with childrenâ&#x20AC;&#x2122;s play equipment

Fantastic Location 43km South-East of Melbourneâ&#x20AC;&#x2122;s CBD. Located in one of Victoriaâ&#x20AC;&#x2122;s fastest growing areas, City Of Casey, with considerable upgrades scheduled for local infrastructure. 12km North-East and 12kms SouthEast of major employment hubs of Frankston and Dandenong South. Centrally located to many shopping centres, golf courses, recreational facilities and the Royal Botanic Gardens, as well as being surrounded by countless schools. At the gateway to the Peninsula wine region, hot springs and beaches.

Maddison Gardens

Facilities Around Maddison Gardens EDUCATION

COMMUNITY AND RECREATION

• St Peter’s College • Casey Grammar School • St Therese Primary School • Cranbourne West Primary School • Cranbourne Secondary College • Cranbourne East Secondary College • Chisholm TAFE Cranbourne • St Margaret’s College • Haileybury College (Berwick Campus) • Monash University (Berwick Campus)

• Minutes drive to local medical centre • Ranfurlie Golf Course - 1km • Settlers Run Golf Course – 2km • Cranbourne Race Course – 3km • Casey RACE Recreation and Aquatic Centre – 3km • Cranbourne Botanical Gardens – 3.5km • Casey Fields Precinct – 5.5km • Casey Hospital – 10km

TRANSPORT • 500 meters to all major bus routes • Recently upgraded Cranbourne Train Station less than 5 minutes away

• 44 minutes by train to the CBD • Quick and easy access to both the Monash Freeway and Eastlink

SHOPPING AND DINING • Minutes from local bakeries and fresh produce stores • Only 2km from the recently renovated Cranbourne Park Shopping Centre

INDIVIDUAL PROPERTY RISK REPORT Address: Cranbourne VIC, Australia 3977

iBuyNew 0478846584

IN THIS REPORT YOU WILL FIND Your Property Risk Summary Property Details Suburb Information Suburb Metrics Market Overview Risk Analytics Equity Risk Factors Cash Flow Risk Rating Risk Definitions Other Definitions Terms and Conditions Disclaimer

Cranbourne VIC, Australia 3977

Individual Property Risk Report, 2019

YOUR PROPERTY RISK SUMMARY Thank you for purchasing an Individual Property Risk Report from RiskWise. A summary of this report can be found below. If you have any questions about the report, please contact us via our website.

EQUITY RISK OVERVIEW * The overall risk rating for this property based on its location, features and planned holding period is: LOW SUBURB FACTORS: The overall score for houses in Cranbourne is LOW.

Equity Risk Your Investment Term

PROPERTY FACTORS: Off-the-plan value may be higher than the settlement valuation. High risk of noise disturbance - main road.

LOW

High risk of noise disturbance - next door to school. The property enjoys a good location.

HOLDING PERIOD: Your Investment term in Years is 11+. A holding period of 11 years decreases the risk associated with this investment.

SHORT TERM EQUITY RISK * The market outlook for short term is: LOW-MEDIUM

Short Term Equity Risk LOW-MEDIUM

YOUR PROPERTY RISK SUMMARY (CONT.) CASH FLOW RISK OVERVIEW * The cash flow rating for this property is: MEDIUM High quarterly strata payments. Off-the-plan property rental return may not meet expectations. High risk of noise disturbance - main road. The number of new residential buildings may increase vacancy rate.

Cash Flow Risk MEDIUM

High risk of noise disturbance - next door to school. Above average or new property condition. * for this report purpose Townhouse has been classified as a small house.

Cranbourne VIC, Australia 3977

Individual Property Risk Report, 2019

PROPERTY DETAILS ENTERED BY YOU PROPERTY ADDRESS: Cranbourne VIC, Australia 3977

Property Type:

Town House *

Existing Property / Off-The-Plan:

Off The Plan

Number of Bedrooms, Bathrooms, Parking Spaces: Property Condition:

3, 2, 2 Modern and Fully Renovated

Property Price:

$495,000

Expected Weekly Rent:

$450

Expected Quarterly Strata:

$1,080

Investment Term in Years:

11 Years

In the Property Bought off the Plan?:

Yes, rental guarantee 0 (years)

Close Proximity to Pub / Bar?:

On a Railway?:

On a Major Road:

Yes

Next Door to School:

Yes

Ocean / Special View:

Walking Distance to the Train Line?:

Is the property located in a Top Public School Catchment?:

Yes

* for this report purpose Townhouse has been classified as a small house.

Cranbourne VIC, Australia 3977

Individual Property Risk Report, 2019

SUBURB METRICS CRANBOURNE, 3977 Preferred Property Configuration: For Houses

Strong Historic Capital Growth

1-2

BEDROOMS

BATHROOMS

CARPARKS

Moderate Short Term Equity Risk

Reasonable Rental Return

Median House Value $544,309

Strong Projected Demand

KEY PROPERTY INDICATORS Data Type

Investment Indicators Median sales price last 12 months for Houses

Sales Price & Median Growth

12 Month Rental Return

Projects in the Pipeline Demand

Unit $544,309

3 month change in median sales price (12 months)

-2.4%

12 month change in median sales price (12 months)

1.2%

36 month change in median sales price (12 months)

45.4%

60 month change in median sales price (12 months)

75.0%

Median advertised rent last 12 months

$360

Estimated 12 months gross rental return (%)

3.6%

12 Months Surplus / (Shortfall) Ratio*

0.0%

New properties in the pipeline next 24 months

175

New properties next 24 months as % of current stock

3.0%

Vacancy Rate

3.8%

Source: CoreLogic, RiskWise Property Research, ABS

* The % surplus or shortfall of the actual rental return versus the required rental return to service an 80% LVR mortgage. Based on discounted standard variable interest rate. For more details refer to the Data Dictionary.

Cranbourne VIC, Australia 3977

Individual Property Risk Report, 2019

MARKET ANALYSIS / OVERVIEW * Houses in Cranbourne produced solid capital growth of 75% in the past five years. However, the past 12 months saw them deliver negative returns. With a median price of $544,309, Houses in Cranbourne are significantly below the median price of Houses in the greater city area. The equity risk for Houses in Cranbourne is Low. This means that it is likely that Houses will deliver solid growth, unless there is a significant slowdown in the property market. In terms of cash flow, the risk of poor returns in Cranbourne is low-medium. In addition, with 175 Houses in the pipeline in Cranbourne over the next 24 months, the risk of oversupply is low. The impact of the variable cost components on your investment financials can be calculated using our Cash Flow Calculator. CURRENT STATE FOR HOUSES IN CRANBOURNE Houses in Cranbourne produced solid capital growth of 75% over the past five years and 45.4% over the past three years. However, the past 12 months delivered only 1.2%. The median days on the market of 28.5 is very low which means that

Historic Capital Growth

there is strong demand for Houses against the current supply. STRONG

MARKET OUTLOOK FOR HOUSES IN CRANBOURNE The future-view equity risk for Houses in Cranbourne is low. Unless there is a significant slowdown in the property market, it is highly likely they will deliver solid capital growth in the medium and long term. The relative affordability of houses to units in Cranbourne make houses a preferable dwelling option. With the median price of units more than 50% of the median price of houses, it is likely that home buyers and investors will have a preference towards houses. Therefore, houses are projected to deliver higher price growth than units. With only 175 Houses planned

Market Outlook Short Term

over the next two years (representing 3% of existing stock) in Cranbourne, it is unlikely that the additional supply will impact capital growth and

LOW-MEDIUM

rental returns over the short to medium-term. Off-the-plan Houses in Cranbourne carries low-medium settlement risk. Settlement risk is the risk that the value of the property prior to the settlement will be lower than the 'formal' property value in the contract. According to recent research, the valuations of around 30% of Units in some areas is lower than the contract value. This results in a shortfall between the valuation and the property price, which needs to be covered by the buyer. Houses in Cranbourne are likely to deliver moderate capital growth in the short term, however, our analysis indicates that this level of growth is likely to increase over the long term (10+ years).

* for this report purpose Townhouse has been classified as a small house.

Market Outlook Long Term LOW

Cranbourne VIC, Australia 3977

Individual Property Risk Report, 2019

MARKET ANALYSIS / OVERVIEW (CONT.) * CASH FLOW FOR HOUSES IN CRANBOURNE In terms of cash flow, the risk of poor returns for Houses in Cranbourne is low-medium due to the following factors: The current gross rental return of 3.6% is considered relatively low for Houses. With potential land tax, mortgage repayments and other costs,

Cash Flow

investors might be required, on a regular basis, to cover a shortfall between the actual rental return and the ongoing costs associated with the property. Therefore, investors may have to rely on negative gearing, as applicable to them. With a moderate vacancy rate of 3.8%, it is likely that there will be good demand for Houses in Cranbourne. Those with popular property configurations (i.e. 3+ bedrooms) are likely to experience greater demand than other smaller Houses. Also, with 175 projects in the pipeline over the next 24 months, this supply increase is unlikely to have any notable impact on the rental market. The impact of the variable cost components on your investment financials can be calculated using our Cash Flow Calculator.

12 Month Growth

Vacancy Rate

1.2 PERCENT

3.8 PERCENT

Owner Occupier Ratio

Median Time on Market

70.5 PERCENT

28.5 DAYS

* for this report purpose Townhouse has been classified as a small house.

LOW-MEDIUM

Cranbourne VIC, Australia 3977

Individual Property Risk Report, 2019

EQUITY RISK FACTORS Risk Factors

The key equity risk factors associated with this property in Cranbourne are: OFF-THE-PLAN VALUE MAY BE HIGHER THAN THE SETTLEMENT VALUATION: The value of an off-the-plan property in Cranbourne may decrease between the original contract date and settlement. This will result in a capital loss, as the equity in the home could be reduced. The risk is further increased if a pre-settlement valuation for a mortgage loan is less than the original value, as there could be a shortfall in funds to complete the sale.

HIGH RISK OF NOISE DISTURBANCE - MAIN ROAD: This property is on a main road. Properties that are on main roads are not a popular choice with many tenants, who often seek properties in quieter areas in Cranbourne.

HIGH RISK OF NOISE DISTURBANCE - NEXT DOOR TO SCHOOL: This property is next door to school. Properties that are in potentially noisy locations are not a popular choice with many tenants, who often seek properties in quieter areas in Cranbourne.

Risk Mitigations

The above risks are mitigated by the following positive attributes which make this property more attractive to home buyers and investors: THE PROPERTY ENJOYS A GOOD LOCATION: The property enjoys a good location with the benefits of 'good proximity to a train line' / 'in a catchment of a good public school' / 'an ocean / special view'. This reduces the risk of low demand, as the property will appeal to a greater number of investors and buyers.

Cranbourne VIC, Australia 3977

Individual Property Risk Report, 2019

YOUR PROPERTY CASH FLOW RISK RATING:

Cash Flow Risk MEDIUM

Risk Factors HIGH QUARTERLY STRATA PAYMENTS: The quarterly strata payments of 1,080 and/or annual land tax are considered high. There is an increased risk that the landlord might be required to cover a shortfall between the rental income and ongoing property costs, creating a possible loss.

OFF-THE-PLAN PROPERTY RENTAL RETURN MAY NOT MEET EXPECTATIONS: Actual rental returns in Cranbourne may be lower than expected. There are various factors that can impact this. The most common is the release of new residential developments which creates an increased supply in a short period. This often results in many leases becoming available at the same time, impacting rental return.

THE NUMBER OF NEW RESIDENTIAL BUILDINGS MAY INCREASE VACANCY RATE: There are several new residential building developments in Cranbourne which are due to be completed in the near future. This will increase property stock on the market and the risk of higher vacancy rates, as more landlords compete for a smaller number of tenants. This may result in a longer vacancy period and / or a discounted rent.

Cranbourne VIC, Australia 3977

Individual Property Risk Report, 2019

CASH FLOW RISK RATING (CONT.) Risk Mitigation ABOVE AVERAGE OR NEW PROPERTY CONDITION: This propertyâ&#x20AC;&#x2122;s condition is Modern and Fully Renovated. There is high demand for properties in such condition in Cranbourne. This will increase the likelihood that a larger number of tenants will be interested in this property, resulting in shorter vacancy periods, possible higher rental income and more positive cashflow.

RISK DEFINITIONS The advanced algorithm that generates this report measures two types of risks: Property Equity Risk: the risk of purchasing a property that will decrease in value or will deliver a lower return compared to the long-term capital growth projections; and Cash Flow Risk: the risk of receiving less cash than expected, or higher than expected costs associated with letting the property. This could result in insufďŹ cient net rental income to meet the ďŹ nancial obligations associated with the property.

In addition, the algorithm provides a risk-return analysis that shows the current risk against the actual return in the last 12 months. It also assesses the range of expected return from this property in the next few years.

PROPERTY EQUITY RISK DESCRIPTION Risk Rating

Equity Risk Description

Low

1. There is only a low risk that this property will not return an increase, on average, of at least 3% a year. 2. There is high demand for this property in any market condition. It is likely to be easy to sell and achieve the property market value, even in a weaker market, providing a good return against a low risk.

LowMedium

1. There is a risk that the value of this property will not return an increase, on average, by 3% a year in the next two years. 2. It is unlikely that the property price will be reduced against its current price. Any price reduction might only take place over the short term and will probably not be more than 3% below the original purchase price. 3. Overall, there is relatively high demand for this property. However, in a weaker market, the property may take longer to sell and a small discount, around 5%, from the asking price, might be required.

Medium

1. It is possible the value of this property will not increase by an average of 3% a year, creating a risk of a poor return with very low or potentially negative capital growth. This would be particularly the case in a weaker market. 2. It is possible, that the price of the property will reduce by up to 5%, particularly if sold in a weaker market. 3. Demand for this property could be relatively low and unless the market is 'strong', it is possible that this property will take longer to sell and may require a price discount of 5-10%.

MediumHigh

1. It is possible there will be no or negative capital growth on this property, creating risk of poor or negative return. 2. There is a risk that this property's value will decrease by 5-10% against the current price. 3. There could be low demand for this property and it is possible that it will be difficult to sell at the market value, even after a prolonged period of time.

High

1. It is possible that the value of the property will decrease by 10% or more, creating significant risk of major capital loss and materially lower equity. 2. It is possible that there will be little demand for this property and it will be very difficult to sell it without absorbing a loss.

Extreme

1. Unless there is sudden and unexpected outstanding demand for similar properties in the area, it is unlikely that there will be any capital growth in the foreseeable future. The property price is likely to remain unchanged or decrease by up to 20%. This creates significant risk of negative capital growth on this property. 2. It is likely that it will be very difficult to sell this property due to the following: There will be a very limited number of serious buyers; Buyers will be struggling to get the needed loan from a lender. 3. A significant discount (of 10-20% or more) from the 'market value' might be required during the negotiation.

RISK DEFINITIONS CASH FLOW RISK DESCRIPTION Risk Rating

Low

LowMedium

Cash Flow Risk Description 1. It is likely that the rental return (after deducting the strata and land tax) will be around 4% of the value of the property. 2. It is very unlikely that the landlord will be required, on a regular basis, to cover a significant shortfall (i.e. of 40% or more) between the rental income and the ongoing costs associated with this property.

1. It is likely that the rental return (after deducting the strata and the land tax) will be around 3.5% of the value of the property. 2. It is unlikely that the landlord will be required, on a regular basis, to cover a significant shortfall (i.e. of 40% or more) between the rental income and the ongoing costs associated with this property. 3. While there is good demand for this property, the demand can change, and the property could be vacant for two-four weeks a year on average. 4. It is possible that a discount of 4%-8% from the fair weekly market value will be required to let out this property, during weaker demand period.

1. It is possible that the rental return (after deducting the strata and the land tax) will not exceed 3% of the value of the property. This means that the landlord may be required, to cover the shortfall between rental income and ongoing costs on a regular basis.

Medium

MediumHigh

High

Extreme

2. It is possible that the property will be vacant for a period of three-six weeks a year, on average. 3. It is possible that: A discount of 5%-10% from the fair weekly market value; and / or; Some minor work (e.g. carpets) might be required to let out this property.

1. It is possible that the rental return (after deducting the strata) will not exceed 2.5% of the value of the property. 2. It is very likely that the landlord will be required, on a regular basis, to cover a significant shortfall (i.e. of 40% or more) between the rental income and the ongoing costs associated with this property. 3. It is possible that the property will be vacant for a period of five-eight weeks a year, on average. 4. It is possible that: A discount of 10%-15% from the fair weekly market value; and / or; Some work (e.g. carpets) and new appliances might be required to let out this property.

1. It is possible that the rental return (after deducting the strata) will not exceed 2% of the value of the property. 2. It is likely that the landlord will be required on a regular basis, to cover a significant shortfall (i.e. of 40% or more) between the rental income and the ongoing costs associated with this property. 3. There is relatively low demand for this property, and it is very possible that the property will be vacant for a period of six to ten weeks a year, or even longer. 4. It is very possible that: A discount of 15%-25% from the fair weekly market value; and / or; A 'grace' period of 2 weeks; and / or renovations, new appliances, a modern air-conditioning system might be required to let out this property.

1. It is possible that the rental return (after deducting the strata) will be around 1.5% of the value of the property. 2. It is very likely that the landlord will be required, on a regular basis, to cover a significant shortfall (i.e. of 40% or more) between the rental income and the ongoing costs associated with this property. 3. It is very possible that the property will be vacant for a period of eight to sixteen weeks a year, or even longer. 4. It is possible that: A discount of 25%-35% from the fair weekly market value; and / or; A 'grace' period of 4 weeks; and / or; Renovations, new appliances, a modern air-conditioning system might be required to let out this property.

OTHER DEFINITIONS Field Name

Definition

Median sales price last 12 months

The median sale price of all transactions recorded during the last 12 month period

12 month change in median sales price (12 months)

The percentage change in the median sale prices in the same period compared to 12 months ago.

36 month change in median sales price (12 months)

The percentage change in the median sale prices in the same period compared to three years ago.

60 month change in median sales price (12 months)

The percentage change in the median sale prices in the same period compared to ďŹ ve years ago.

Median asking rent last 12 months

The median value of advertised weekly rents captured during the last 12 months.

Estimated 12 months gross rental return (%)

The median ratio between the weekly advertised rent multiplied by 52 weeks and the median sale price of each property that was sold in the last 12 month period. Rental surplus / shortfall Ratio: The % surplus or shortfall achieved over the last 12 months, between actual rental return and the required rental return to service an 80% LVR mortgage, based on a discounted standard variable interest rate.

12 Months Surplus / (Shortfall) Ratio*

Surplus â&#x20AC;&#x201C; the actual rental return was more than the required rental return, enabling the rent to service the mentioned mortgage. Shortfall â&#x20AC;&#x201C; the actual rental return was less than the required rental return, meaning the rent would not fully service the mentioned mortgage. The discounted standard variable rate in December 2016 was 4.5% RBA). The required rental return to service an 80% LVR mortgage is 3.6%

Units in the pipeline next 24 months

Number of units with expected end dates in the subsequent 24 hands months based on projects with an approved development application.

Units in the pipeline next 24 months as % of units

Number of units with expected end dates in the subsequent 24 months based on projects with an approved development application as a ratio to existing residential units

Average vacancy rate of rental properties last 12 months

Percentage of days the average listed property is vacant over the last 12 months.

3 month change in median sales price (12 months)

The percentage change in the median price in the same period compared to the last three months prior.

OTHER DEFINITIONS Field Name

Potential lending restrictions risk

Definition The risk that the RBA and / or the regulator, and / or a lender and / or any party who has to power to restrict lending for residential property purposes, may implement measures to restrict such lending. Lending restrictions include, but not limited to: A limited Loan to Value (LVR) ratio (e.g. 70% or 80%) in speciďŹ c areas A limited ratio of property investors in speciďŹ c areas

Settlement risk

The risk that the value of an OTP property, as assessed by a valuator prior to the settlement, may decrease between the original contract date and settlement. The higher the likelihood and the impact (i.e. the price reduction), the higher the risk.

Short term equity risk

The risk that the price of a property may reduce or the property may deliver poor capital growth in the next 2-3 years. The higher the likelihood and the impact (i.e. the price reduction), the higher the risk.

Medium term equity risk

The risk that the price of a property may reduce or the property may deliver poor capital growth in the next 5-7 years. The higher the likelihood and the impact (i.e. the price reduction), the higher the risk.

TERMS AND CONDITIONS Permitted Purpose â&#x20AC;&#x201C; Individuals, Sole Traders and Small Corporates 1. The Customer may only use this report if he is: An individual; or a sole trader; or a corporate with up to three total staff members 2. If the Customer does not meet the criteria set in sec 1.1(a) â&#x20AC;&#x201C; 1.1(c) above, then he must not use this report for commercial purposes without purchasing the Corporate Pack from RiskWise Property Research from our website (https://riskwiseproperty.com.au/ContactRequests/Create), based on the size of the Corporate. 3. The Customer may only use this report as the basis: for assisting himself in his personal (i.e. not commercial) property market research; for assisting in its internal property market research for commercial purposes; for reviewing data and / or information regarding the property market obtained from an independent source of information for quality purposes; 4. This report and any section of this report, must not be published or provided to any third party except with the prior written consent of RiskWise Property Research. 5. The customer must not provide any reference and / or attribute any conclusions drawn from this report in any way that may damage the reputation or goodwill of RiskWise Property Research, alter the meaning of the content of this report, or otherwise mislead any person who receives any information that is included in this report.

DISCLAIMER This Report has been created by MJP Property Risk Rating Pty Ltd, ACN 613 004 685 (brand name RiskWise Property Research). MJP Property Risk Rating (including any related entities, directors, officers and agents) gives no warranty nor accepts any liability or responsibility for any decision of the purchaser of this report (or any associates) which purports to be based wholly or in part on this report, such as any decision to invest in, to buy or not to buy the property described in the report. The data, statements, information, photographs, calculations, graphs, facts, statistics, analytics, results, property transactional information, ownership and occupancy information, and property attribute data (including any commentary) provided in this report (collectively referred to as Information) is of general nature and should not be construed as specific advice or relied upon in lieu of appropriate professional advice. While MJP Property Risk Rating uses reasonable endeavours to ensure the Information is current, MJP Property Risk Rating does not warrant the accuracy, currency or completeness of the Information and to the full extent permitted by law excludes all loss or damage howsoever arising (including through negligence) in connection with the Information. Further MJP Property Risk Rating gives no warranty in relation to the report and the contents of the report and expressly disclaims any liability for any loss or damage which may arise from any person acting or deciding not to act partly or wholly on the basis of the Information. The Risk Estimate must not be relied upon as a professional valuation or an accurate representation of the market value of the subject property as determined by a valuer. MJP Property Risk Rating expressly excludes any warranties and representations that the Risk Rating is an accurate representation as to the market value of the subject property. To the full extent permitted by law, MJP Property Risk Rating excludes all liability for any loss or damage howsoever arising suffered by the recipient, whether as a result of the recipient's reliance on the accuracy of the Risk Estimate or otherwise arising in connection with the Risk Estimate. Where Product Data has been compiled with data supplied by third parties, including, but not limited to: CoreLogic Australian Bureau of Statistics Reserve Bank of Australia MJP Property Risk Rating provides no warranty and excludes all liability and responsibility for any loss or damage howsoever arising from the third party data. The third-party disclaimers and Terms and Conditions as published by each of the above named third parties applies in conjunction with this Disclaimer applies.

Stage 3 / 980 Cranbourne-Frankston Rd, Cranbourne

D3A

Internal 186.9m2 External 3.2m2

Total 190.1m2

D3C

Internal 234m2 External 6.8m2

Total 240.8m2

D4A

Internal 160.9m2 External 2.7m2

Total 163.6m2

D4C

Internal 200.55m2 External 6.7m2

Total 207.25m2

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01763/D/ST3 JGK

980-1016 CRANBOURNE-FRANKSTON RD PROPOSED RESIDENTIAL DEVELOPMENT

TP-103

lorsds.local\projects\00000-04999\01763\acad\building design\general\amstel mdh development\01763_layouts_gf.dwg | A1 PART-SITE C_TP-103

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SCALE 1:250 @ A1

D2B

10 99

5500

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2250

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5910

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63 2250

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EXISTING TREES TO REMAIN

TH PA

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m 0m 150

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FL DG: 31 FL SG: 26

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Existing tree (TPZ - tree protection zone) as per relevant arboricultural report.

.........................................................................................................................

D4a

Existing trees to remain, refer to arboricultural report.

Vis. Car Spaces: 17

House Typology

pable Area: 2.027ha

DG: 25 SG: 0

Site Extents Stage Boundary Public Park areas AAV Heritage Register Item

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3.092ha 0.62ha 0.445ha

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LEGEND

Materials Metallica by Dulux Principle render colour to the roof forms, balconies and canopies render colour for entry signage and letterboxes Napkin White by Dulux Secondary render colour to external walls

Silver pearl colour window framing, glazed balustrading frame Charcoal grey or similar approved driveway coloured concrete Dulux Klavier or blackest brown entry doors (or as selected)

LED lighting 6 star energy efficiency Various floor designs Heating and cooling Stone benchtops to kitchen Lock up garage with remote

Specifications for stage 3 Maddison Gardens PRELIMINARY SITE WORKS AND FOUNDATIONS Site Cut – Scrape & remove vegetation & any excess spoil from site. Concrete Footing / Foundation - Concrete waffle slab on ground. All in ground works to be carried out in accordance with engineered structural design. Allowance as required as part of fixed site costs. Bored Piers – Allowance as required as part of fixed site costs. PROTECTION AGAINST SUBTERRANEAN TERMITES As per local council authority requirements. Part A – Under slab chemical treatment with penetration collars installed. Part B – Perimeter chemical treatment provided prior to external concrete works are laid. BRICKWORK, MASONRY & EXTERNAL CLADDINGS General Ground Floor Walling –As per plan. General First Floor Walling – As per plan Acrylic Render – 3 coat system to areas as indicated elevation plan set. Sills - Sloped down from window to shed water. Party Wall Construction – As per plan. Porch / Eaves Linings – 4.5mm compressed sheet, PVC joining strap, painted finish. ROOFING Roof – As per plan Metal Fascia - 180mm Colorbond. Eaves Gutters – 115mm quad slotted Colorbond. Box Gutters – Colorbond & zincalume combination. Downpipes - Colorbond 100 x 50 mm, amount as detailed on the plan. Flashings & Rain Heads - Colorbond & zincalume combination. FRAMING MATERIALS All timber framing supplied and erected as per the applicable Aust. Standards 1684.2 1999 NON CYCLONIC AREA, Roof trusses are to be designed and computated by an accredited manufacturer, and installed in accordance with the manufacturers specifications. WINDOWS Frames - Aluminium awning/sliding windows, residential grade, powder coated. Glazing - Standard single glazing & cathedral obscure as required. Double glazing subject to energy report requirements. Hardware – Lockable hardware throughout. Insect Screens - Fibreglass mesh screens to windows, excludes sliders & entry doors. Window Coverings / Blinds – Roller blinds to living and bedrooms, venetians to wet areas. THERMAL INSULATION Walls – Allowance made for R2.5 batts. Ceilings - Allowance made R6.0 batts.

Beachwood Homes Pty Ltd - ABN: 39 075 832 530 Office 1/33 Colemans Road, Carrum Downs www.beachwood.melbourne Contract Specification & Inclusions 120 Cardinia Rd Officer

Sisilation & Sarking Paper - Installed to external side of frame with joins lapped & taped. Note - R values are to be as per “Energy Rating Report” prepared by suitably qualified person. PLUMBING Mains Water Supply - 32mm UPVC underground supply from dry water tapping to dwelling. Allowance for & 1 x front tap to meter location & 1 x wall mounted rear garden tap. Hot & Cold Water - 20mm UPVC, pipe service used throughout, including brass fittings. Gas - Variable diameter, UPVC pipe service used throughout including, brass fittings. Sewer Drains – 100mm UPVC pipes bedded on quarry material & earth covered minimum 150mm. Storm Water Drains – 90mm UPVC pipes bedded on quarry material & earth covered as required. Agricultural Drains & Silt Pits – As applicable. ELECTRICAL Underground Supply - Single phase underground supply connected to dwelling. Meter box – Metal painted, RCD fitted as per Aust. Standards requirements. Smoke Detectors - As per Aust. Standards. Internal Lighting – As per plan. External Flood Lighting – As per plan. GPO’s – As per plan Ceiling Exhaust Fans – 300mm white round style (Quantities Master plan specific). TV Points – Allowance for 2 x points, connected to quality FTA antenna. Phone – Allowance for 2 points wired & ready for account connection by occupier. Fibre To The Home – Underground provision from boundary pit to dwelling ready for supply agreement & connection by occupier. Allowance for 2 x data adjacent to phone points & 2 x data adjacent to TV points. INTERNAL WALL AND CEILING LININGS Ceiling Height – As per plan. General Walling - 10 mm Plasterboard Wet Areas - 10mm W.R. Board to wet areas Cornice – 75mm cove throughout. DOORS Internal – “Redicoat” flush panel doors, 2040mm throughout. Robe Doors – “Redicoat” flush panel doors, 2040mm throughout. Cavity Slider – Standard door pocket, fitted with flush pull. Door Quantities - Refer to plan for width & location of. Internal Handles - Chrome lever. Door Stops – White PVC cushion style. External Entry – 2040mm x 820mm feature door. External Laundry – Tempered hardboard weatherproof door, no glazing allowance. External Garage Man Door – Tempered hardboard weatherproof door. GARAGE Walling – Cladding as per plan, painted plaster on timber frame internally. Floor - Concrete slab, plain machine finished floor. Ceiling – Plaster lined painted finish. Main Vehicle Access Door – Colorbond panel lift door fitted with, remote controlled lifter with 2 x hand control sets to main door only.

Beachwood Homes Pty Ltd - ABN: 39 075 832 530 Factory 1/33 Colemans Road, Carrum Downs www.beachwood.melbourne Contract Specification & Inclusions Stage 3 Maddison Gardens

FIXINGS Architraves – 67mm x 15mm Single bevel profile. Skirting - 67mm x 15mm Single bevel profile. Robe Shelving – Single shelve & hanging rail, to full width of robe. White melamine board 16mm thick. Linen – 4 x fixed shelves. White melamine board 16mm thick. Broom – 1 x tall shelve, no hanging. White melamine board 16mm thick. CABINETS Door Type - Laminate doors, 16.5mm colour board doors. Edging - Draws, seems & panels with 2mm PVC edging. Hinges - Radial hinges. Handles – brushed aluminium. Kitchen Bench Tops – 20mm thick engineered stone. Internal Surfaces – White melamine to all cupboards. Number of Drawers - 1 bank of 4 drawers & 2 x pot drawers. Soft close style. Overhead Cupboards - As indicated on plans excluding over the fridge space. Rubbish Bin – In cupboard, 30 litre low profile pull out twin bin. Kitchen Splash Backs – Ceramic tiles to full width of benches 600mm high to underside of the rangehood. Kickboards - Selected laminate to timber backing. Vanity Cupboards - Laminate doors with 32mm laminate bench tops, with post formed edges. Laundry – Metal cabinet white with stainless steel trough 45 litre capacity. FLOOR COVERINGS Carpet – “CAT 1” range. Carpet Underlay – Deluxe foam. Flooring Joins - Where unlike floors merge a metal chrome floor joint will be used. Location – As per floor plan. PAINTING & FINISHING INTERIOR FINISHES – Premium Specification Internal Timber Doors Pre Primed – 1 x Prep (tinted) & 2 x Dulux Doors & Trim Semi-Gloss. Painted Woodwork – 1 x prep (tinted) & 2 x Doors & Trim Semi-Gloss. Plasterboard Ceilings - 2 x Ceiling White. Plasterboards Walls – 1 x Prep (tinted) & 2 x Top Coat Matt (3 Coat System). EXTERIOR FINISHES – Premium Specification Front Entry Door & Other Gloss Enamel Substrates - 1 x Prep (tinted) & 2 x Dulux Ext Full Gloss. Timber Cladding & PVC Components - 2 x Ext Low Sheen Acrylic. External Eaves Lining - 2 x Ext Low Sheen Acrylic. WALL AND FLOOR TILING FLOOR TILING – “CAT 1” range. Method of Fixing - Flexible adhesive. Description - Lay standard bond. Extent – As per hatched areas detailed on plans. Tile Skirtings – 100mm high to all wet areas. Grout – To match tiles. WALL TILING – “CAT 1” range. Beachwood Homes Pty Ltd - ABN: 39 075 832 530 Factory 1/33 Colemans Road, Carrum Downs www.beachwood.melbourne Contract Specification & Inclusions Stage 3 Maddison Gardens

Method of Fixing - Flexible adhesive. Description - Lay standard Bond. Kitchen – 600mm above bench tops and to underside of rangehood. Bathroom & Ensuite - 300mm above benches, vanities, 600mm above bath, 2000mm high to showers. Laundry - 400 above trough. Grout – To match tiles. WATER PROOFING & CAULKING External Caulking – Expansion & articulation joints to be filled with colour match acrylic caulk. Internal Caulking – Silicon compound caulk applied to all internal corners of tiling, benches & toilet basins. Slab Water Proofing – None required. Wall Water Proofing – Villa board behind shower walls & bath surround to be waterproofed with rubberized compound. HEATING & COOLING Heating – Heating panels to bedrooms. Cooling – Wall hung split system to living area & master bedroom (2 per dwelling).

Beachwood Homes Pty Ltd - ABN: 39 075 832 530 Factory 1/33 Colemans Road, Carrum Downs www.beachwood.melbourne Contract Specification & Inclusions Stage 3 Maddison Gardens

SCHEDULE OF FITTINGS The following items shall be included in the contract sum and shall be supplied and installed by Beachwood Constructions. ITEMS FULL DESCRIPTION, NAME, COLOUR, AND SIZE COOKING APPLIANCES

Westinghouse 600mm Electric Under Bench Oven WVE613S Westinghouse 600mm Gas Hotplate WHG642S Westinghouse 600mm Retractor WRH605IS Westinghouse 600mm Dishlex DX103SK

SINK

Double main bowls with 90mm basket wastes.

HOT WATER SERVICE

Solar HWS with panels on roof – gas boosted.

TAPWARE

Kitchen & Laundry Sink – Sink Mixer Wall & Basin Taps - Mixer Shower Outlet - 45 deg arm & rose. Wall Mixer Bath Set. Washing Machine Tap Set.

BATH

1675x765x400mm Lucite Sanitary Grade Acrylic Bath or as applicable/possible.

BASINS

Square inset vanity basin

BATHROOM ACCESSORIES

To match tap ware range, Towel Rails Double 2 x 750mm – Toilet Roll Holders – Soap Dishes –

TOILET SUITE/S (complete)

Suite including dual flush china cistern. Beachwood Homes Pty Ltd - ABN: 39 075 832 530 Factory 1/33 Colemans Road, Carrum Downs www.beachwood.melbourne Contract Specification & Inclusions Stage 3 Maddison Gardens

SHOWER SCREEN AND/OR DOOR

Semi frameless, clear laminate, chrome surround & pivot doors 2000mm high.

SHOWER BASES

White polymarble pre-formed bases.

WALL MIRROR

Above full width of vanities to bathroom and ensuite, polished edge.

LAUNDRY TROUGH

Stainless steel 46 litre with bypass.

STORMWATER DRAINAGE Scope of Works - Connected to drainage system. Special Note – No special requirements. SEWER DRAINAGE Scope of Works - Sewer available, connected to legal point as directed by the Relevant Authority. Special Note – No special requirements. WATER TANKS Scope of Works – As per plan. CONCRETE PAVING Front Driveways & Paths - 100mm thick, stipple finish, charcoal coloured weather sealed. As per area indicated on site plan. Rear Paving – 100mm thick, stipple finish, charcoal coloured weather sealed. As per area indicated on site plan. Crossover – Protect & use existing crossover provided. FENCING Front Fencing – As per plan. Allotment Internal Divide Fence – 1800mm high timber slat horizontal man gate constructed the same. Boundary Fence – 1800mm high timber paling fence. LANDSCAPING Scope of Works – Generally consistent with the council endorsed design. Garden Beds – Timber edging, top soiled & dressed with pine wood mulch & pebble combination. Planting – Trees, shrubs & plants, species & quantities as per the council generally consistent endorsed landscape design. Lawn – Instant turf, laid over suitably prepared surface. Paths – Concrete stepping stones as per indications on landscape design. Rear Concrete Paving – 100mm thick pattern paving with 3 colour oxide finish. Letterbox – Supply & install to each individual dwelling a “Colorado” galvanized steel powder coat finish.

Beachwood Homes Pty Ltd - ABN: 39 075 832 530 Factory 1/33 Colemans Road, Carrum Downs www.beachwood.melbourne Contract Specification & Inclusions Stage 3 Maddison Gardens

ASSOCIATED FEES

ESTIMATES OF ASSOCIATED FEES ‘Maddison Gardens’ Townhouses Cranbourne, VIC Property Type

Stamp Duty Payable Stamp Duty Payable Stamp Duty Payable Body Corp Fee (FOH)* (Local Investor) * (Overseas Investor) * (p/a)

Council Rates + Estimate (p/a)

Water Rates + Estimate (p/a)

Floor Plan – D3A

$1,387.10

$26,997.10

$62,627.10

$1,0080.00

$1,300.00

$800.00

Floor Plan – D3C

$1,504.10

$30,114.10

$69,244.10

$1,080.00

$1,300.00

$800.00

Floor Plan – D4A

$1,354.10

$26,124.10

$60,774.10

$1,080.00

$1,300.00

$800.00

Floor Plans – D4C

$1,504.10

$30,114.10

$69,244.10

$1,080.00

$1,300.00

$800.00

*Stamp Duty estimates derived from https://stampduty.calculatorsaustralia.com.au/stamp-duty-victoria + Council Rates and Water Rates quoted are average across all lots.

PROPERTY INVESTMENT ANALYSIS 'Maddison Gardens' Cranbourne, VIC Floor Plan D4A â&#x20AC;&#x201C; 3 Bed, 2 Bath, 2 Car Townhouse Purchase Price $495,000

Income

Positive Cashflow Per Week (Year 1)

$80,000

$29.00

$100,000

$19.00

$120,000

$7.00

$150,000

$13.00

Floor Plan D3A - 3 Bed, 2 Bath, 2 Car Townhouse Purchase Price $509,000

Income

Positive Cashflow Per Week (Year 1)

$80,000

$32.00

$100,000

$23.00

$120,000

$10.00

$150,000

$16.00

Floor Plan D4C & D3C - 4 Bed, 2 Bath, 1 Study, 2 Car Townhouse Purchase Price $559,000 - $579,000

Income

Positive Cashflow Per Week (Year 1)

$80,000

$46 - $58

$100,000

$37 - $49

$120,000

$23 - $34

$150,000

$29 - $41

Disclaimer: Note that 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 the 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 this company its servants, employees or consultants.

Nyko Property - Melbourne Investment Property Analysis 'Maddison Gardens' Townhouses, 980 Cranbourne-Frankston Road, Cranbourne,31-Jan-2019 VIC Prepared for: Consultant: Property: 'Maddison Gardens' Townhouses, 980 Cranbourne-Frankston Road, Cranbourne, VIC Description: 3 Bed, 2 Bath, 2 Car SUMMARY Assumptions Property value Investment Gross yield Net yield Growth rate Inflation rate Interest rate Taxable income

$495,000 $0 4.43% 3.25% 6.00% 3.00% 5.00% $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 $886,470 $388,616 70.95% $298,853 $129,421 $259,194 63.96%

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

2019 $495,000 $2,354 $0 $497,854 $-2,854 6.00% 3.00% $430

1yr 524,700

Projections over 10 years 2yr 3yr 5yr 556,182 589,553 662,422

497,854 26,846 6.00% 3.00% 21,913

497,854 58,328 6.00% 3.00% 23,008

497,854 91,699 6.00% 3.00% 24,159

497,854 164,568 6.00% 3.00% 26,635

497,854 388,616 6.00% 3.00% 33,994

5.00% 26.02% $0

24,893 5,817 -8,797

24,893 5,992 -7,876

24,893 6,172 -6,905

24,893 6,547 -4,805

24,893 7,590 1,511

2.50% $25,432 $500

6,756 5,203 100 42,769 7,308 -1,489

6,756 6,756 6,756 4,762 3,500 2,128 100 100 100 42,502 41,420 40,424 6,782 5,955 4,759 -1,094 -950 -46 Your cost /(income) per week 21 18 1

6,756 472

$80,000 $0 70.95% 108.31%

10yr 886,470

39,711 2,316 3,827 (74)

Disclaimer: Note that the 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. .

Nyko Property

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:

495,000 0 495,000 $495,000

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 1,354 $2,354

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 495,000 0 2,354 0 500 $497,854

Total Cost 495,000 0 2,354 0 500 $497,854

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 6.00

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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 662,422 497,854 $164,568

10 yrs 886,470 497,854 $388,616

15 yrs 1.186m 497,854 $688,442

20 yrs 1.588m 497,854 $1.090m

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

38,007 3,312 18,712 $104,537

100,116 4,432 24,873 $259,194

177,867 5,931 33,118 $471,526

279,399 7,938 44,152 $758,189

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 5.00 $497,854 $500 $2,074 $24,893

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:

430 22,360 2.00 $21,913

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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:

1,687 430 2,100 600 1,000 0 $5,817

Normal expenses as % of annual rent (%): Net yield or Capitalisation rate (%):

26.02 3.25

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

1yr 21,913 0 0 24,893 5,817 $-8,797

2yr 23,008 0 0 24,893 5,992 $-7,876

3yr 24,159 0 0 24,893 6,172 $-6,905

5yr 26,635 0 0 24,893 6,547 $-4,805

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

$495,000 $270,233 2.50 $6,756

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

$25,432 $5,203

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

10yr 33,994 0 0 24,893 7,590 $1,511

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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 24,893 5,817 6,756 5,203 100 $42,769

2yr 24,893 5,992 6,756 4,762 100 $42,502

3yr 24,893 6,172 6,756 3,500 100 $41,420

5yr 24,893 6,547 6,756 2,128 100 $40,424

10yr 24,893 7,590 6,756 472 0 $39,711

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 Cost /(income) per week

2019 0

1yr -8,797 7,308 -1,489 29

2yr -7,876 6,782 -1,094 21

3yr -6,905 5,955 -950 18

5yr -4,805 4,759 -46 1

10yr 1,511 2,316 3,827 (74)

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

2019 $0

1yr $-1,489

2yr $-1,094

3yr $-950

5yr $-46

10yr $3,827 $388,616

The total amount in your "account" (including interest) at the end of the period is the equity ($388,616) in the investment property. The IRR (70.95%) 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 108.31% before tax.

If the property were to be sold at the end of the period, the after-sale equity would be reduced to $259,194 after taking account of selling costs and capital gains tax and the IRR after the sale would be 63.96%. 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 21,913 101,913 42,769 59,144

Current tax (on 80,000): New tax (on 59,144): Tax saving:

18,617 11,309 7,308

Total tax credits:

$7,308

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'Maddison Gardens' Townhouses, 980 Cranbourne-Frankston Road, Cranbourne, VIC Who pays the cost (1st year)?

71% Tenant 5% You

24% 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)

$24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893 $24,893

$5,817 $5,992 $6,172 $6,357 $6,547 $6,744 $6,946 $7,155 $7,369 $7,590 $7,818 $8,052 $8,294 $8,543 $8,799 $9,063 $9,335 $9,615 $9,904 $10,201 $10,507 $10,822 $11,147 $11,481 $11,825

$30,710 $30,885 $31,064 $31,249 $31,440 $31,637 $31,839 $32,047 $32,262 $32,483 $32,711 $32,945 $33,187 $33,436 $33,692 $33,956 $34,228 $34,508 $34,796 $35,093 $35,399 $35,715 $36,039 $36,374 $36,718

$21,913 $23,008 $24,159 $25,367 $26,635 $27,967 $29,365 $30,834 $32,375 $33,994 $35,694 $37,478 $39,352 $41,320 $43,386 $45,555 $47,833 $50,225 $52,736 $55,373 $58,141 $61,048 $64,101 $67,306 $70,671

$7,308 $6,782 $5,955 $5,411 $4,759 $4,482 $4,060 $3,670 $2,996 $2,316 $1,528 $900 $239 $-458 $-1,190 $-1,900 $-2,671 $-3,495 $-4,362 $-5,275 $-6,234 $-7,246 $-8,310 $-9,594 $-11,393

Cash (you) $1,489 $1,094 $950 $472 $46 $-812 $-1,586 $-2,456 $-3,109 $-3,827 $-4,511 $-5,433 $-6,404 $-7,426 $-8,504 $-9,699 $-10,934 $-12,222 $-13,578 $-15,004 $-16,508 $-18,088 $-19,751 $-21,338 $-22,560

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'Maddison Gardens' Townhouses, 980 Cranbourne-Frankston Road, Cranbourne, VIC

(%)

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

Year from purchase Tenant (85%) Taxman (15%) You (0%)

Average contribution (10 years)

85% Tenant

15% Taxman

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Page 8

'Maddison Gardens' Townhouses, 980 Cranbourne-Frankston Road, Cranbourne, VIC

($)

Investment Property Value & Debt

3.000m

2.000m

1.000m

0 0

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

6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%

Property value $495,000 $524,700 $556,182 $589,553 $624,926 $662,422 $702,167 $744,297 $788,955 $836,292 $886,470 $939,658 $996,037 $1.056m $1.119m $1.186m $1.257m $1.333m $1.413m $1.498m $1.588m $1.683m $1.784m $1.891m $2.004m $2.124m

Amount owing $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854 $497,854

Equity $-2,854 $26,846 $58,328 $91,699 $127,072 $164,568 $204,313 $246,443 $291,101 $338,438 $388,616 $441,804 $498,183 $557,945 $621,293 $688,442 $759,620 $835,068 $915,044 $999,818 $1.090m $1.185m $1.286m $1.393m $1.506m $1.627m

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Page 9

'Maddison Gardens' Townhouses, 980 Cranbourne-Frankston Road, Cranbourne, VIC

$/week

Average Projected Weekly Cash Flow & Equity Growth

800

480

160

-160

-480

-800 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 $15 per week while the average equity growth is $753 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) 275,617 47,739 323,356

Average (per week)

622

0 0 248,927 66,689 315,616

607

7,740

Nyko Property

Page 10

INVESTMENT GROWTH

Property value Loan amount Equity

Initial

10 yrs

Change

495,000 497,854 -2,854

886,470 497,854 388,616

391,470 0 391,470

Average (per week) 753 0 753

RD 3

PARTY VALIDATION

PHASE A TAX DEPRECIATION ESTIMATE REPORT

Y O U R

P R O P E R T Y

O U R

ww ww.mcgq qs.ccom m.au

PH: 1300 795 170 SYDNEY

MELBOURNE

BRISBANE

E X P E R T I S E

ADELAIDE

CANBERRA

NEWCASTLE

Tuesday, 15 January 2019 Anita Krzystyniak – Bennett Williams Pty Ltd PO Box 2126 Seaford, VIC 3198 RE: 980 Cranbourne-Frankston Road Cranbourne, VIC 3977 Dear Anita, Please find attached our tax depreciation estimates for the above property detailing the depreciation and associated tax allowances that may be available to the owner under the provisions of 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 property, in order to assist prospective purchasers in the estimation of the after tax return on the investment over the first 10 full years of ownership. The purchaser of the property, upon utilising the property for income producing purposes, is entitled to depreciation including; • •

Depreciation of Plant & Equipment Capital Works Allowance

The depreciation of plant and equipment items is based on the diminishing value effective life rates as prescribed by the commissioner of taxation. The current ruling as at the date of this report is (TR2018/4). It is assumed in the preparation of this estimate that the plant and equipment items are not sold at an agreed value. We are pleased to be able provide a complete detailed tax depreciation report on the property at a reduced fee, owing to our familiarity with the development. Should you wish to discuss the contents of this report in more detail, please do not hesitate to contact Mike Mortlock at the office. Regards,

Mike Mortlock B. Con. Mgmt. (Build) Managing Director MCG Quantity Surveyors

GUIDE TO TAX DEPRECIATION /

What is it?

A depreciation schedule is simply a report that shows you the deductions you’re able to claim on your investment property each year, based on the decline in value of the qualifying structure and assets within.

What is a depreciation schedule for?

The way it works is like any other tax deduction you might be familiar with. Any tax deductions you claim come off your taxable income. To put this another way, if you earn $100,000 a year and you have $10,000 worth of deductions in that year, the tax office now sees you as only earning $90,000 a year and that’s what you’re paying tax on.

What are the new depreciation rules?

Essentially if you purchase after the 9th of May 2017 you can only claim plant and equipment items if you bought the property brand new, or installed those assets yourself, such as adding new carpet. Plant and equipment items are generally the internal assets like blinds, kitchen appliances, air conditioning etc. What hasn’t changed is the division 43 deductions, which consists of the structure of the building. You can still claim those deductions as per the old rules.

What are the advantages of buying a new property?

New properties always provide the best possible depreciation as 100% of the value is there from day one. On top of that, new properties allow the owner to claim all plant and equipment items such as blinds, carpets, kitchen appliances and the like. These deductions make up around half of the total deductions within the first full year of claim. These claims are no longer available to second hand or established property purchases.

ESTIMATE / Phase A Depreciation Estimate 980 Cranbourne-Frankston Road Cranbourne, VIC 3977 - Type D3A Maximum

Comparison (Minimum vs. Maximum)

Year

Plant & Equipment

Division 43

Total

1 2 3 4 5 6 7 8 9 10

$5,568 $5,175 $3,788 $3,155 $2,276 $2,207 $1,479 $1,366 $854 $534

$7,916 $7,921 $7,921 $7,921 $7,921 $7,921 $7,921 $7,921 $7,921 $7,921

$13,484 $13,096 $11,708 $11,076 $10,197 $10,128 $9,400 $9,287 $8,775 $8,455

Total Value

$27,292

$316,838

$344,130

Minimum

$12,000

$10,000 $8,000

$6,000 $4,000

$2,000 $0 y1 y2 y3 y4 y5 y6 y7 y8 y9 y10

Min

Max

Cumulative Deductions (Minimum & Maximum)

Year

Plant & Equipment

Division 43

Total

1 2 3 4 5 6 7 8 9 10

$4,728 $4,394 $3,216 $2,679

$6,721 $6,725 $6,725 $6,725

$11,449 $11,120 $9,941 $9,404

$1,932 $1,874 $1,255 $1,160 $725 $453 $23,172

$6,725 $6,725 $6,725 $6,725 $6,725 $6,725 $269,013

$8,658 $8,599 $7,981 $7,885 $7,450 $7,179 $292,186

Total Value

$14,000

$120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 y1

Min

y9 y10

Max

This estimate is presented as a guide to the potential depreciation deductions only and should not be applied or acted upon. The depreciation of the plant and equipment items is based on the Diminishing Value method of depreciation applying Low-Value Pooling and 100% deductions. The Division 43 Capital Allowance is calculated at 2.5% p.a. of the estimated construction cost. The estimate is based upon legislation current as at the date of report production. THIS ESTIMATE CANNOT BE USED FOR TAXATION PURPOSES.

ESTIMATE /

This estimate is presented as a guide to the potential depreciation deductions only and should not be applied or acted upon. The depreciation of the plant and equipment items is based on the Diminishing Value method of depreciation applying Low‐Value Pooling and 100% deductions. The Division 43 Capital Allowance is calculated at 2.5% p.a. of the estimated construction cost. The estimate is based upon legislation current as at the date of report production. THIS ESTIMATE CANNOT BE USED FOR TAXATION PURPOSES.

ESTIMATE /

This estimate is presented as a guide to the potential depreciation deductions only and should not be applied or acted upon. The depreciation of the plant and equipment items is based on the Diminishing Value method of depreciation applying Low‐Value Pooling and 100% deductions. The Division 43 Capital Allowance is calculated at 2.5% p.a. of the estimated construction cost. The estimate is based upon legislation current as at the date of report production. THIS ESTIMATE CANNOT BE USED FOR TAXATION PURPOSES.

ESTIMATE /

This estimate is presented as a guide to the potential depreciation deductions only and should not be applied or acted upon. The depreciation of the plant and equipment items is based on the Diminishing Value method of depreciation applying Low‐Value Pooling and 100% deductions. The Division 43 Capital Allowance is calculated at 2.5% p.a. of the estimated construction cost. The estimate is based upon legislation current as at the date of report production. THIS ESTIMATE CANNOT BE USED FOR TAXATION PURPOSES.

VALUATION REPORT RESIDENTIAL PROPERTY

LOT 331 / 980 CRANBOURNE – FRANKSTON ROAD, CRANBOURNE VIC 3977 As At

24th DAY OF JANUARY, 2019 In Property Valuations Pty Ltd

Prepared for:

Melbourne P.O. Box 1287 Doncaster East Vic 3109 Email: admin@ivpa.com.au

BENNETT WILLIAMS PTY LTD 564B FRANKSTON-DANDENONG ROAD, CARRUM DOWNS VIC 3198

‘Liability limited by a scheme approved under professional standards legislation’

Valuer’s file reference: J005931

Page 1

Residential Valuation Report Prepared For: Address: Valuation Purpose:

Bennett Williams Pty Ltd Email: andrew@bennettwilliams.com.au 564B Frankston-Dandenong Road, Carrum Downs Vic 3198 In accordance with our instructions, we have reviewed the proposed plans and specification of the subject property in order to provide our independent assessment of the current market value of the property, on an ‘as if complete’ basis, assuming the property had been offered for sale in the prevailing market conditions.

1. PROPERTY SUMMARY – Residential Townhouse – ‘As If Complete’ Basis PROPERTY ADDRESS: TITLE DETAILS:

Lot 331 / 980 Cranbourne – Frankston Road, Cranbourne Vic 3977

Registered Proprietors:

Proposed Lot 331 on Plan of Subdivision 704250 Title not searched unable to advise at this time

Encumbrances/Restr’ns:

Title not searched, assumed nil that affects value

Site Dimensions: ZONING: MAIN BUILDING:

Irregular shaped lot Gen Res 1 Zone / Casey Planning Scheme

Built About:

2018 Living Area: 123.5 sqm

MARKETABILITY: ENVIRONMENTAL ISSUES:

LGA:

Townhouse with 3 beds and 2 baths

Total Areas: Car Accommodation:

Site Area: Current Use: Additions:

Double Garage

162.0 sqm City of Casey To be constructed N/A

Outdoor Areas:

7.00 sqm

Garage Area:

37.4 sqm

Average

Heritage Issues:

N/A

Essential Repairs:

N/A

2. RISK ANALYSIS Property Risk Ratings

Market Risk Ratings

Location & Neighbourhood:

Neu

Market Demand:

Neu

Land Area:

Neu

Saleability:

Neu

Improvements:

Neu

Market Direction:

Neu

* Risk Ratings: Neg = Negative, Neu = Neutral & Pos = Positive

3. VALUATION & ASSESSMENTS SUMMARY Interest Valued: Value Component:

Fee Simple vacant possession

Existing Property

Land:

$280,000

Improvements:

$215,000

Assessed Current Market Value: Rec. Documents to Sight:

$495,000 (Inclusive of GST) Nil

I hereby certify that I personally inspected this property on the date below and have carried out the assessments above as at that date. Neither I, nor any member of this firm, has any conflict of interest, or direct, indirect or financial interest in relation to this property that is not disclosed herein. This report is for the use only of the party to which it is addressed and is not to be used for any other purpose. No responsibility is accepted or undertaken to third parties in respect thereof. This report does not constitute a structural survey.

Valuer: Chris Mason Qualifications / Reg No #: Inspection & Valuation Date:

CPV / AVI 000631 24/01/2019

Firm: Address: Email:

In Property Valuers Pty Ltd P.O. Box 1287, Doncaster East Vic 3109 admin@ivpa.com.au

Signature: Countersignatory Qualifications:

Robert Bath Director

Signature

Valuer’s file reference: J005931

Page 2

Residential Valuation Report 4. THE LAND Property Identification: Has Title Been Searched: ZONING EFFECT: LOCATION: NEIGHBOURHOOD:

SITE DESCRIPTION & ACCESS:

SERVICES:

The subject property has been identified by reference to its street address and proposed plans. No. A residential use is considered permissible under the planning scheme. The subject property comprises a new residential townhouse, which is to be developed upon an irregular shaped, near level, inside allotment of General Residential 1 land, which is situated along the north eastern alignment of Mc Comb Lane within the outer south eastern suburb of Cranbourne. The property forms part of a new development which is being developed around the Amstel Golf Club. The subject is well serviced by an extensive road network and is within walking distance to the St Peters Catholic College. The property is located approximately 41.7 radial kilometres south east from the Melbourne GPO. The subject property is sited upon an irregular shaped, near level, inside allotment of General Residential land, having access from Mc Comb Lane. All essential services are available to the property.

5. BUILDING Style: Main Walls & Roof: Main Interior Linings: Internal Condition: Accommodation: Interior Layout: PC Items:

Fixtures & Features: AREAS: CAR ACCOMMODATION:

Semi detached townhouse Street Appeal: Assumed good upon completion Brick and rendered walls / metal roof Window Frames: PDC Aluminum Plasterboard Flooring: Concrete and timber Assumed good upon completion External Condition: Assumed good upon completion Entry, open plan living area, laundry, powder room, kitchen and meals area to the ground floor. Master bedroom with ensuite, two further bedrooms and main bathroom to the first floor. Contemporary style townhouse. Built in laminate cupboards, stone benches, glass splashabck, stainless steel underbench oven, cooktop, rangehood, dishwasher and stainless steel sink to the kitchen. Tiled shower recess, frameless shower screens, w/c, built in single basin vanity and wall mirror to the ensuite. Tiled shower recess, frameless shower screens, set in bath, w/c, built in single basin vanity and wall mirror to the ensuite Single trough and washing machine connections to the laundry. W/c to the powder room. Combination of laminate timber, carpet and tiled floor coverings throughout. Split system heating and cooling units. Living Area 123.5 sqm Outdoor Area: 7.00 sqm Double garage Garage Area: 37.4 sqm

6. ADDITIONAL IMPROVEMENTS In addition the subject property will include a paved driveway, detached garage, landscaped lawns and gardens and boundary fencing.

7. SALES EVIDENCE & THE MARKET Address

Sale Date / $ Price

Brief Comments

47 Willow Glen Blvd, Cranbourne

May 2018 / $522,500

The sale comprised a slightly irregular shaped, near level, inside allotment of residential land, having an area of approximately 297.0 sqm. The property was improved with a modern two storey dwelling, having 3 bedrooms, 2 bathrooms, kitchen, open plan living area and a double garage.

3 Sandview Pl, Cranbourne

Jul 2018 / $550,000

The sale comprised a slightly irregular shaped, near level, inside allotment of residential land, having an area of approximately 399.0 sqm. The property was improved with a modern, single storey dwelling, having 3 bedrooms, 2 bathrooms, kitchen formal and informal living areas, an alfresco outdoor area and a double garage.

57 Willow Glen Blvd, Cranbourne

Jul 2018 / $529,000

The sale comprised a slightly irregular shaped, near level, inside allotment of residential land, having an area of approximately 235.0 sqm. The property was improved with a modern, The property was improved with a modern, two storey dwelling, having 3 bedrooms, 2 bathrooms, kitchen, open plan living area and a double garage.

13 Jockey Ln, Cranbourne

Oct 2018 / $485,000

The sale comprised a slightly irregular shaped, near level, inside allotment of residential land, having an area of approximately 164.0 sqm. The property was improved with a modern, The property was improved with a modern, two storey dwelling, having 3 bedrooms, 2 bathrooms, kitchen, open plan living area, outdoor patio area and a double garage.

Last Sale of the property: Level of Market Activity: Recent Market Direction:

Sale Images

No sale Steady Stable market

Valuerâ&#x20AC;&#x2122;s file reference: J005931

Page 3

Residential Valuation Report 8. ADDITIONAL COMMENT The Property: The subject property comprises an irregular shaped, near level allotment of residential land, which is situated along the eastern alignment of McComb Lane, having an area of approximately 324.0 square metres. The property forms part of a new development which is being developed around the Amstel Golf Club. The subject is well serviced by an extensive road network and is within walking distance to the St Peters Catholic College. The property is located approximately 41.7 radial kilometres south east from the Melbourne GPO. The property is to be improved with a modern, contemporary designed, two storey townhouse dwelling. Accommodation is to comprise an entry, open plan living area, laundry, powder room, kitchen and meals area to the ground floor. In addition there is a master bedroom with ensuite, two further bedrooms and main bathroom to the first floor. Internally the townhouse includes built in laminate cupboards, stone benches, glass splashabck, stainless steel underbench oven, cooktop, rangehood, dishwasher and stainless steel sink to the kitchen. There is a tiled shower recess, frameless shower screens, w/c, built in single basin vanity and wall mirror to the ensuite. There is a tiled shower recess, frameless shower screens, set in bath, w/c, built in single basin vanity and wall mirror to the ensuite Single trough and washing machine connections to the laundry. W/c to the powder room. In addition the townhouse also includes a combination of laminate timber, carpet and tiled floor coverings throughout and split system heating and cooling units. Externally the property includes a paved driveway, detached garage, landscaped lawns and gardens, studio over the garage and boundary fencing. Condition: The property as at the date of our valuation is yet to be constructed. We have assessed the market value of the property on an “as if complete” basis. Our assessment is made on the basis that the; -The subject townhouse is completed in accordance with all necessary and required plans and permits; -The subject townhouse is completed to a high standard of workmanship and is free from defect; -A certificate of occupancy is granted to the subject townhouse and its development, once complete; and -The proposed plan of subdivision is registered and a new certificate of title is issued for the property. Cranbourne / Cranbourne West Residential Unit Market: According to the sales recorded by REIV (Real Estate Institute of Victoria) on their sales database known as ‘pdol’, we have summarized market conditions within the Cranbourne / Cranbourne West market in a broad sense over the last 4 months as follows;

Number of 3 & 4 Bedroom Unit / Townhouse Sales Median 3 & 4 Bedroom Unit / Townhouse Sale Price $

Mar Qtr 2018 12 $456,000

Jun Qtr 2018 8 $433,000

Sept Qtr 2018 6 $400,000

Dec Qtr 2018 5 $440,000

Anecdotally the broader Melbourne residential market is cooling, sales numbers are slowing and the median dwelling sale price as a whole has been softening in recent months. In specific terms, sales numbers across the Cranbourne / Cranbourne West 3 & 4 bedroom unit / townhouse market have remained relatively consistent across the calendar year 2018, with the median sale price only slight down between the start and end of the year. Sales Analysis: More specifically we consider that the sales we feel are reflective of the value of the subject property at this time have been summarised within the sales section of this report, they range value between $485,000 at the lower end of the range through to $550,000 at the upper end. Address 47 Willow Glen Blvd 3 Sandview Pl 57 Willow Glen Blvd 13 Jockey Ln

Sale Price $ $522,500 $550,000 $529,000 $485,000

Liv Area 162.0 163.0 161.0 160.0

$ Rate p/sqm $3,225 $3,374 $3,286 $3,031

Beds 3 3 3 3

Baths 2 2 2 2

Comparison Superior Superior Superior Inferior

Valuation Calculations: Having regard to the attributes of the property and after breaking down the sales, we have calculated the value of the subject property on a Direct Comparison basis as follows; Direct Comparison Valuation Townhouse Living Area 123.50 sqm @ $4,000 per sqm of living area For practical valuation purposes adopt

$494,000 $495,000

Valuation Conclusion: So taking all of this into account including, the location of the property, the proposed improvements and the accommodation they will offer and after consideration of a range of prevailing market sales over the last 6 months or so we feel that the property, on an ‘as if complete’ basis, subject to vacant possession has a current market value, as at the 24th January, 2018 at $495,000.

Valuer’s file reference: J005931

Page 4

Residential Valuation Report 9. CLIENT-SPECIFIC INFORMATION Based on our brief inspection of the readily accessible portions of the improvements, we are of the opinion that the property is: * Not subject to flooding or landslip. * Not affected by pests. * Not affected by main road acquisition. * Not affected by heritage issues. * Not affected by close proximity to high tension power lines. * Not subject to environmental hazards. * Not adversely affected by proximity to railway lines. * This valuation is assessed exclusive of GST on the basis that the applicantâ&#x20AC;&#x2122;s interest is not registered or required to be registered for GST and is not utilising the property for the furtherance of an enterprise. If this is not the case please refer back to In Property Valuations for further consideration. Note: Any comments on these issues are based on brief and preliminary observations on site without the benefit of legal searches, surveys, title details, pest certificates, etc. Both the valuer and In Property Valuations Pty Ltd reserve the right to review the valuation figure and the report if searches and enquiries reveal contrary conditions or matters not addressed herein, especially where recent copy of Certificate of Title is not provided. Unless it is patently obvious, it is almost impossible to ascertain the pre-existence of termite infestation. This valuation is current as at the date of valuation only. The value assessed herein may change significantly and unexpectedly over a relatively short period (including as a result of general market movements or factors specific to the particular property). We do not accept liability for losses arising from such subsequent changes in value. Without limiting the generality of the above, we do not assume any responsibility or accept any liability in circumstances where this valuation is relied upon after the expiration of three months from the date of valuation, or such earlier date if you become aware of any factors that have any effect on the valuation. No third party is entitled to use or rely upon this report in any way and neither the valuer nor In Property Valuations Pty Ltd shall have any liability to any third party who does. Neither In Property Valuations Pty Ltd nor the valuer has any pecuniary interest giving rise to a conflict of interest in valuing the property.

10. DIGITAL IMAGES

Proposed Street Elevation

Valuerâ&#x20AC;&#x2122;s file reference: J005931

Page 5

Residential Valuation Report 11. LOCATION MAP

Melways Map 133 C5

Valuerâ&#x20AC;&#x2122;s file reference: J005931

Page 6

Residential Valuation Report 12. FLOORPLAN

Valuerâ&#x20AC;&#x2122;s file reference: J005931

Page 7

Residential Valuation Report Assumptions, Qualifications and Disclaimers Abbreviated Short Form Report

Scope of Work Undertaken

This valuation report has been prepared with acknowledgement by the client that the valuation is presented in the form of an abbreviated short form report as per standing instructions where applicable. A more detailed valuation report with additional advice can be provided if required. This valuation is subject to the definitions, qualifications and disclaimers and other comments contained within this report. The scope of work undertaken by the valuer in completing the valuation has included: -Collation of information from relevant parties regarding the subject property; -Undertaking our own research regarding the subject property; -An inspection of the property and measurement of buildings where required; -Undertaking market research in terms of values and/or costs of similar properties; -Preparation of valuation calculations; and Preparation of this report;

Certificate of Valuation

Third Party Disclaimer

Counter Signatory Limited Liability Full Disclosure Disclaimer

Digital Copies of Reports

Reliance on Whole Report

The Certificate of Valuation must be read in conjunction with the remainder of this report. The Certificate of Valuation is only a synopsis designed to provide a brief overview and must not be acted upon in isolation to the contents of the valuation report. The valuer and valuation firm does not accept any responsibility where part of this report has been relied upon without reference to the full context of the valuation report This report has been prepared for the private and confidential use of our client, for the specified purpose. It should not be reproduced in whole or part; or any reference thereto; or to the valuation figures contained herein; or to the names and professional affiliation of the Valuer(s) without the express written authority of In Property Pty Ltd or relied upon by any other party for any purpose and the valuer shall not have any liability to any party who does so. Our warning is registered here, that any party, other than those specifically named in this paragraph should obtain their own valuation before acting in any way in respect of the subject property. The counter signatory confirms that the report is genuine and is endorsed by In Property Pty Ltd. The counter signatory may not have formally inspected the property or comparable sales. The opinion of value has been arrived at by the principal signatory. Liability limited by a scheme approved under Professional Standards Legislation Whilst we have attempted to confirm the veracity of information supplied, the scope of work did not extend to verification of all information supplied or due diligence. Our valuation and report has been prepared on the assumption the instructions and information supplied has been provided in good faith and contains a full disclosure of all information that is relevant. The valuer and valuation firm does not accept any responsibility or liability whatsoever in the event the valuer has been provided with insufficient, false or misleading information. Where a report has been provided in digital copy and has not been received directly via our firm, the report contents, especially the valuations and critical assumptions, should be verified by contacting the issuing office to ensure the contents is bona fide. In particular if the reader of this report has suspicions that the report appears to be tampered or altered then we recommend the reader contact the issuing office. This valuation should be read in its entirety, inclusive of any summary and annexures. The valuer and valuation firm does not accept any responsibility where part of this report has been relied upon without reference to the full context of the valuation report.

Publication of Report

The publication of the valuation or report in whole or any part, or any reference thereto, or the names and professional affiliations of the valuers is prohibited without the prior written approval of the valuer as to the form and context in which it is to appear.

Market Change Disclaimer

This valuation is current as at the Date of Valuation only. The value assessed herein may change significantly and unexpectedly over a relatively short period (including as a result of general market movements or factors specific to the particular property). We do not accept liability for losses arising from such subsequent changes in value. Without limiting the generality of the above comment, we do not assume any responsibility or accept any liability where this valuation is relied upon after the expiration of three (3) months from the date of the valuation, or such earlier date if you become aware of any factors that have any effect on the valuation. We recommend the valuation be reviewed at regular intervals.

Land Area Disclaimer

the event the actual surveyed land area of the property is different to the area adopted in this valuation the survey should be referred to the valuer for comment on any valuation implications.

Native Title Assumption

We are not experts in native title or the property rights derived there from and have not been supplied with appropriate expert advice or reports. Therefore, this valuation is made assuming there are no actual or potential native title interests affecting the value or marketability of the property.

Site Survey Disclaimer

This report is not a site survey and no advice is given in any way relating to survey matters. Any comments given in relation to the property are not given in the capacity as an expert, however, are based on our inspection of the property and review of the Certificate of Title plans. Should the addressee require absolute certainty in relation to encroachments we recommend that a surveyor be engaged to provide appropriate advice and a survey or the property if considered necessary.

Planning Disclaimer

Town planning and zoning information was informally obtained from the relevant local and State Government authorities. This information does not constitute a formal zoning certificate. Should the addressee require formal confirmation of planning issues then we recommend written application be made to the relevant authorities to obtain appropriate current zoning certificates.

Heritage Disclaimer

Heritage information was informally obtained from the relevant local, State and Federal authorities. Should the addressee require formal confirmation of the heritage status then we recommend written application be made to the relevant authorities.

Building Services Assumption

No documentation or certification has been sighted to verify the condition of building services, and we have assumed that building services are operational and satisfactorily maintained.

Structural Disclaimer

This report is not a structural survey and no advice is given in any way relating to structural matters. Any opinion given as to the condition of the improvements on the property is not given in the capacity as an expert. A structural report on the building and/or its plant and equipment has not been sighted, and nor have we inspected unexposed or inaccessible portions of the premises. Therefore we cannot comment on the structural integrity, any defects, rot or infestation of the improvements, any use of asbestos or other materials now considered hazardous or areas of non-compliance with the Building Code of Australia, other than matters which are obvious and which are noted within this report.

Condition Report

A condition report on the building and/or its plant and equipment has not been sighted, and nor have we inspected unexposed or inaccessible portions of the premises. Therefore we cannot comment on the structural integrity, any defects, rot or infestation of the improvements, any use of asbestos or other materials now considered hazardous, or areas of non-compliance with the Building Code of Australia, other than matters which are obvious and which are noted within this report. Persons or entities involved in dealings with the property may need to make further investigations in this regard if considered necessary.

Environmental Disclaimer

This report is not an environmental audit and no advice is given in any way relating to environmental matters. Any comments given as to environmental factors in relation to the property are not given in the capacity as an expert. This assessment of value is on basis that the property is free of contamination. In the event the property is found to contain contamination the matter should be

Valuerâ&#x20AC;&#x2122;s file reference: J005931

Page 8

Residential Valuation Report referred to this office for comment. Given contamination issues can have a significant impact on the Market Value of the property, we reserve the right to review and if necessary vary our valuation if any contamination or other environmental hazard is found to exist.

Asbestos Disclaimer

We are not experts in this area and therefore, in the absence of an environmental consultantâ&#x20AC;&#x2122;s report concerning the presence of any asbestos fibre within the subject property, this valuation is made on the assumption that there is no health risk from asbestos within the property. Should it subsequently transpire that an expert report establishes that there is an asbestos related health risk we reserve the right to review this valuation.

Future Value Recommendation

Due to possible changes in the property market, economic conditions, occupancy status and property specific factors, we recommend the value of the property be reassessed at regular intervals.

Future Value Disclaimer

Due to possible changes in the property market, economic conditions, occupancy status and property specific factors, we recommend the value of the property be reassessed at regular intervals

Plant & Equipment

Included within our valuation is all plant and equipment which forms an integral part of the property, such as(air-conditioning plant and equipment, lifts, fire services, refrigeration plant and equipment) etc.Our valuation excludes all non-integral building plant and equipment, tenancy fit-out, office furniture and equipment and personal items/contents.

Building Areas

It must be noted that a detailed survey of areas has not been sighted. If a survey reveals any inaccuracies from the areas as adopted herein, then this valuation may require amendment and we recommend you refer this valuation, together with a copy of the survey, to us for comment. We reserve the right to amend our valuation in the event that a formal survey of areas determines lettable areas that differ from those detailed in this report.

Contamination : Right to Review Valuation

Given contamination issues can have a significant impact on the Market Value of the property, we reserve the right to review and if necessary vary our valuation if any contamination or other environmental hazard is found to exist.

Information Availability (Market Evidence)

In preparing this valuation the valuer has researched market evidence from various sources. While we believe the information to be accurate, not all details have been formally verified. Due to privacy laws, confidentiality agreements and other circumstances beyond our control, the valuer may not have had access to: Personal details of parties involved in transactions and is therefore unable to confirm whether such dealings are armâ&#x20AC;&#x2122;s length transactions; Information on recent transactions which are yet to become public knowledge; Copies of leases/contracts to confirm rents/prices and to ascertain whether or not rents/prices are inclusive or exclusive of GST. In the event additional market evidence information becomes available regarding these circumstances this may affect the opinion expressed by the valuer. Nevertheless the valuation is based on information and market evidence reasonably available to the valuer as at the date of the valuation in accordance with usual valuation practices.

Valuerâ&#x20AC;&#x2122;s file reference: J005931