Sora Apartments - Bentleigh by Bill Nikolouzakis

SORA 13 – 15 HAMILTON STREET BENTLEIGH 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 Property’s beliefs, current expectations with respect to the real property market conditions, demand for property and rental projections as at the date of this report. Readers are cautioned not to place undue reliance on these forward-looking statements. Forecasts and hypothetical examples are based on input values and assumptions contained in the example. These hypothetical examples are subject to uncertainty and contingencies outside Nyko Property’s control. Nyko Property does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. Before making any decision, Nyko Property recommends that you consult your own financial, investment and legal advice. To the fullest extent possible under the law, Nyko Property disclaims all liability for any loss or damage arising in connection with all of the information contained in this publication. 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

15 HAMILTON STREET 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

PROPERTY INVESTMENT CASH FLOW ANALYSIS

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

*3RD PARTY VALIDATION

1. Value 2. Yield

RENTAL APPRAISALS*

INDICATIVE TAX DEPRECIATION SCHEDULE *

VALUATION*

3. Tax

PROJECT SUMMARY THE DEVELOPMENT Address

13-15 Hamilton Street, Bentleigh, Victoria, 3204

Type

Apartments

Number of properties

Number for sale

Number of levels

Four Levels

Level access

Stairs & Elevator

THE APARTMENTS Apartment mix

1, 2 & 3 Bedroom

FURTHER INFORMATION Local council

Glen Eira City Council

Zoning (reference)

Residential

Title (reference)

Freehold

Heritage status

N/A

Deposit

10% payable by EFT

Compound Annual Growth Rate (House)

7.4%

Proposed rental yield

2.97% - 3.78%

Medium Rent

$400 - $650 p/w

Vacancy Rate

1.12% as at 01/10/2018

Estimated Construction Start Date:

Q1 2019*

Estimates Build Period:

12 Months*

Estimated Construction Completion:

Q1 2020*

*Please note these dates are subject to change

PROXIMITIES * Distance from CBD

15km

Direction from CBD

South East

Neighbouring suburbs

Brighton East, Glen Huntly, Bentleigh East, Hampton, Gardenvale and Caulfield South

Distance from Airport

50 minutes to Tullamarine Airport

Recreational

1.5km to Elster Creek Cycling Trial 1.5km to Victory Park & Cricket Club 2.4km to Dendy Park & Tennis Club 5km to Brighton Beach

TRANSPORT * Public Transport

Train â&#x20AC;&#x201C; 220m to Bentleigh Station

SHOPS * Supermarkets & Shopping Centre

500m to Bentleigh Plaza 600m to Coles Bentleigh 5.7km to Westfield Southland 7.1km to Chadstone Shopping Centre

SCHOOLS * Childcare

750m to Roseberry House Early Learning Centre 1.2km to Bentleigh Early Child Education Co-operative 1.6km to Bentleigh Child Care

Primary & Secondary

McKinnon Secondary College Zone 1.4km to Saint Paulâ&#x20AC;&#x2122;s Primary 1.5km to OLSH College 1.6km to Bentleigh West Primary 1.6km to McKinnon Secondary College 3.0km to Tucker Road Bentleigh Primary School 3.3km to Bentleigh Secondary College 4.8km to East Bentleigh Primary School

Tertiary

12.4km to Swinburne University of Technology, Hawthorn Campus 14.0km to Deakin University, Melbourne Burwood Campus

MEDICAL * General Practitioners & Hospitals

350m to Allegiance Medical Centre 800m to Bentleigh Medical Centre 9.8km to Monash Medical Centre 10km to The Alfred Hospital

*Referenced from Google Maps & DaftLogic.com

Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

Suburb Statistics Report

Prepared on 04 Oct 2018 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: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

Area Profile The size of Bentleigh is approximately 4.7 square kilometres. It has 6 parks covering nearly 3.5% of total area. The population of Bentleigh in 2011 was 14,919 people. By 2016 the population was 16,170 showing a population growth of 8.4% in the area during that time. The predominant age group in Bentleigh is 40-49 years. Households in Bentleigh are primarily couples with children and are likely to be repaying $1800 - $2399 per month on mortgage repayments. In general, people in Bentleigh work in a professional occupation. In 2011, 72.2% of the homes in Bentleigh were owner-occupied compared with 70.5% in 2016. Currently the median sales price of houses in the area is $1,450,000.

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

Median Price $900,000 $912,000 $940,250 $960,000 $971,000 $975,000 $986,994 $995,000 $1,025,000 $1,050,000 $1,047,500 $1,047,500

Year 2015 Median Price $1,050,000 $1,050,000 $1,067,500 $1,070,000 $1,080,000 $1,100,000 $1,103,250 $1,130,000 $1,160,000 $1,197,500 $1,215,000 $1,230,000

Year 2016 Median Price $1,235,000 $1,250,000 $1,270,000 $1,280,000 $1,301,000 $1,315,000 $1,324,250 $1,350,000 $1,340,000 $1,329,000 $1,350,000 $1,370,000

Year 2017 Median Price $1,358,000 $1,355,000 $1,375,000 $1,370,000 $1,370,000 $1,372,000 $1,375,000 $1,390,000 $1,400,000 $1,425,000 $1,435,000 $1,435,000

Year 2018 Median Price $1,430,000 $1,442,500 $1,450,000 $1,425,000 $1,450,000 $1,450,000 n/a n/a n/a 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: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

Median Sales Price

Median Sales Price vs Number Sold

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Recent Median Sale Prices Recent Median Sale Prices (House)

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

Bentleigh

Glen Eira

Median Price

$1,450,000 $1,450,000 $1,425,000 $1,450,000 $1,442,500 $1,430,000 $1,435,000 $1,435,000 $1,425,000 $1,400,000 $1,390,000 $1,375,000

$1,455,000 $1,458,750 $1,455,000 $1,450,000 $1,457,500 $1,450,000 $1,450,000 $1,450,000 $1,443,000 $1,420,000 $1,410,000 $1,402,000 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: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

Recent Median Sale Prices (Unit)

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

Bentleigh

Glen Eira

Median Price

$650,000 $647,500 $645,000 $647,500 $645,000 $650,000 $660,000 $660,000 $660,000 $660,000 $660,000 $647,000

$590,000 $595,000 $600,000 $599,000 $598,000 $600,000 $600,000 $599,500 $600,000 $595,000 $594,500 $587,500 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: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

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

Number 176 229 216 276 234 186 170 185 215 185 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: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

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

Number 150 215 228 285 144 117 100 101 118 159 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: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

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

Number 1 0 2 2 2 1 0 3 3 3 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: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

Sales By Price Sales By Price - 12 months (House) Bentleigh Price <$200K $200K-$400K $400K-$600K $600K-$800K $800K-$1M $1M-$2M >$2M

Number 0 0 3 3 6 133 20 Statistics are calculated over a rolling 12 month period

Sales By Price - 12 months (House)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

Sales By Price - 12 months (Unit) Bentleigh Price <$200K $200K-$400K $400K-$600K $600K-$800K $800K-$1M $1M-$2M >$2M

Number 1 9 53 36 24 24 0 Statistics are calculated over a rolling 12 month period

Sales By Price - 12 months (Unit)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

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

Number 0 0 0 0 0 0 1 Statistics are calculated over a rolling 12 month period

Sales By Price - 12 months (Land)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

Change in Median Price Change in Median Price (House)

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

Bentleigh

Glen Eira

% Change

5.69% 4.33% 19.55% 12.82% 14.98% 2.79% -5.17% 0.97% 26.53% -9.8%

3.93% 7.69% 18.07% 15.29% 16.46% -1.03% -5.1% -0.23% 22.38% -9.61% Statistics are calculated over a rolling 12 month period

Change in Median Price (House)

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Nyko Property Suite 109, 12 Cato Street, HAWTHORN EAST VIC 3123 AUS Ph: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

Change in Median Price (Unit)

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

Bentleigh

Glen Eira

% Change

-1.52% 16.81% -3.62% 4.22% 7.14% -3.93% -9.37% 8.06% 24% -0.66%

0% 2.61% 2.87% 3.99% 9.69% -1.01% -6.25% 6.67% 21.32% 0.74% 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: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

Change in Median Price (Land)

Period Jun 2017 Jun 2016 Jun 2015 Jun 2014 Jun 2013 Jun 2012 Jun 2011 Jun 2010 Jun 2009 Jun 2008

0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Bentleigh

Glen Eira

% Change

% Change 21.17% -11.27% -1.14% -3.85% 30% -37.83% 27.09% 19.09% -4.86% 0% 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: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

Household Household Structure

Type Couples with Children Childless Couples Single Parents Other

Percent 54.8 30.0 13.6 1.6 Statistics are provided by the Australian Bureau of Statistics (ABS)

Household Structure

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Household Occupancy

Type Owns Outright Purchaser Renting Not Stated Other

Percent 36.2 34.3 26.6 2.3 0.6 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: +61(13)00720315 Fax: +61(03)80805943 Email: bill@nykoproperty.com.au

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

Male % 6.5 6.9 6.0 5.9 7.8 6.5 4.7 2.6 1.3 0.3 n/a

Glen Eira Female %

6.3 6.7 5.5 6.4 8.9 7.2 4.8 3.1 2.2 0.6 0.0

Male % 6.4 5.8 7.2 7.3 6.9 5.8 4.6 2.5 1.5 0.4 0.0

Female % 6.1 5.5 7.5 7.6 7.6 6.2 4.9 3.1 2.3 0.8 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: +61(13)00720315 Fax: +61(03)80805943 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+

Bentleigh % 4.5 10.8 10.3 12.1 21.0 12.5 18.2

Glen Eira % 5.1 10.9 10.7 13.3 21.1 11.9 17.4

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: +61(13)00720315 Fax: +61(03)80805943 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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PARKS & RECREATION 1. Dendy Park & Tennis Club

Life at Sora is in the centre of the the Glen Eira City Council’s future vision for the evolution of Bentleigh and benefits from immediate access to the vibrant food, cafe and retail precinct, which the Glen Eira City Council has divided into the below:

2. Elster Creek Cycling Trail

McKinnon

3. Allnutt Park 4. Victory Park & Cricket Club

5. Bentleigh Hodgson Reserve

SCHOOLS

1. Bentleigh West Primary 2. Saint Paul’s Primary

3. OLSH College McKinnon Secondary College Zone

RETAIL & FRESH PRODUCE 1. Extra Fresh Provodore 2. Aldi 3. Bentleigh Health Food CENTRE ROAD

4. Bentleigh Quality Produce

Bentleigh

5. Patterson’s Organics 6. Bentleigh IGA ALLNUT PARK

7. Bentleigh Sunday Markets 8. Coles 9. Target

02 03 04 04 05

C E N T RE ROA D

10. Woolworths WELLNESS & FOOD

01 02 03 01

04 05

HOSPITALITY

07 08 10 06 09 11 13 15 07 08 12 14

1. District Brewer 2. Mexico City 3. Wolf & Malone 4. The Owl and the Baker 5. Two Kings Café HEART OF BENTLEIGH

6. Bent Espresso

7. Noisette 8. Little Tommy Tucker

9. Sonder

10. Fifth Chapter 11. Georgie Peorgie BENTLEIGH

COMMUNITY

HIGHETT

12. Miss Ruby’s 13. A Little Viet

RESERVE

14. Taste of Pho 15. Ripples Yum Cha

MEDICAL & HEALTH 1. Bentleigh Medical Centre 3. F45 Training 4. Rec Xpress 5. Allegiance Medical Centre

04 H

05 02

Patterson

03 JA S P E R ROA D

CENTRE ROAD

16. McKinnon Hotel

2. Trifusion Fitness

Source: gleneira.vic.gov.au

BENTLEIGH TRAIN S TAT I O N 4 minute walk / 300 m

BRIGHTON BEACH 18 minute ride / 5 km TARGE T & C OLES

No essential out of reach

Living on Hamilton Street simplifies your day. It places Coles, Target, and the Centre Road shopping strip within strolling distance. Here you have supermarket essentials, clothes and homewares, pharmacies, banks and countless food options at hand, day and night. When it comes to care in a pinch, youâ&#x20AC;&#x2122;ll find Moorabbin Hospital a close comfort.

6 minute walk / 600 m

For families, McKinnon Primary and Secondary Schools are both an ideal choice for their on-foot accessibility and stellar reputations. Need to venture farther out? The CBD, via Bentleigh Train Station and several bus lines, is a stunningly close connection. In summer, the sands of Brighton are a short drive away. Just beyond home, trams 64, 58, and more will take you wherever you need to go.

WESTFIELD SOU THL AND

MCKINNON SEC ONDARY COLLEGE

10 minute drive / 6 km

5 minute drive / 1.6 km

MONASH UNIVERSIT Y 15 minute ride / 4.5 km

Eat and drink like a true Melburnian foodie

LIT TLE TOMMY TUCKER

NOISE T TE

5 minute walk / 450 m

4 minute walk / 400 m FIF TH CHAP TER

Enjoy brunch and Melbourne-grade coffee at Georgie Porgie or Little Tommy Tucker. When the weekend hits, bars Wolfe & Molone or Sonder provide intimacy and mixological brilliance. Then thereâ&#x20AC;&#x2122;s the old-fashioned pub grub of the Bentleigh RSL, or the convivial vibes of the McKinnon Hotel; which, of course, is to say nothing about the dazzling array of international cuisines available on Centre Road.

5 minute walk / 450 m

Seven days a week, Bentleigh offers indulgence around every corner.

MCKINNON HOTEL

BENT ESPRESSO

3 minute drive / 1 km

4 minute walk / 400 m

SONDER 5 minute walk / 450 m

JUN 8, 2017

Investing in property within Melbourne’s most sought after public school zones HEATH THOMPSON

A persuasive reason to invest in capital growth areas is identifying the public school areas with strong growth fundamentals. Savvy investors are always trying to find value in the property market and with the rapidly changing property legislation, reasons to invest need to be more compelling than ever. A persuasive reason to invest in capital growth areas is identifying the public school areas with strong growth fundamentals. As private school tuition fees still continue to soar, which families are now seeing is an out of pocket expense of between $100,000 to $140,000 for a private secondary school education, many parents are opting to buy investment property in the top public school zones and shrewdly investing this hard cash into appreciating property. “Anyone quick enough to purchase a property near a top tier public school such as McKinnon, Balwyn or Glen Waverley, will almost certainly benefit from a thriving investment which offers premium rent, low vacancy rates and strong capital growth prospects,” says Heath Thompson, Associate Director of Beller Property Group. Heath goes on to say, “a good point in case is the McKinnon High school zone, that is one of the most prized and prestigious public schools in Melbourne”.

McKinnon High School's popularity has spurred a flurry of residential developments in its zone. With nearby Claire Street previously only having 11 houses and now has 125 apartments. “We are currently launching two boutique developments, one in Bentleigh and one in Ormond, and we’ve had strong interest from purchasers making an investment play,” says Heath. According to Heath, investors are now speculating on the new McKinnon School zone which is already generating significant interest in new development, Ciel, prior to the project being available to the market. An invisible line rings around the values of properties in the investment zone and those standing outside. The properties included in the investment said circle can increase in value up to 20-25%. A remarkable increase as parents are required to pay a premium to get into these areas in order to capitalize on their investments. Therefore, purchasers are not only saving on school fees, but also their chosen property will be capitalizing 25% faster than those outside of the school zone. The State Government has identified a second campus site for one of Victoria’s most popular state schools, McKinnon High School, which will inevitably expand its highlycoveted enrolment zone and most likely boost property values in the area. Bentleigh MP Nick Staikos says “The potential new campus would address huge enrolment demand in the area as the zone would have to change to accommodate the new campus, which would be located just outside its existing zone”. “A new campus would also ensure that its existing catchment zone, which is the smallest in the state, did not shrink,” says Staikos. The sought-after public school, which achieves some of the top VCE results in the state, has already rolled out 34 portable classrooms to accommodate its booming enrolments, which have hit almost 2200 students. Beller Property Group knows that being in close proximity to schools is important to people looking to buy property. In fact, around 50% of home hunters, and

even higher for investors, in the area have said that it matters when making a decision on a property. “Many purchasers are either moving to accommodate a growing tribe of kids, or for different circumstances need to relocate and therefore the kids need to change schools. What we’re also noticing is the number of overseas and interstate investors keen to buy homes primarily in the vicinity of desired schools,” says Heath Thompson. Homes in the McKinnon High School zone can fetch up to $100,000-$150,000 more than similar properties outside the school’s district and parents are paying up to $100-$400 per week more to rent a property in the catchment of McKinnon High School. If the goal is a quick turnaround, there may be better options on the market. However, if long-term capital growth and attracting potential renters are goals, purchasing property near top ranking schools is among the best decisions an investor could make. https://www.therealestateconversation.com.au/blog/heath-thompson/investing-property-withinmelbournes-most-sought-after-public-school-zones

Apartment Developments

3204 VICTORIA

Bentleigh Once a reliable, quiet achiever, Bentleigh has grown in reputation over the past decade and now boasts some of the best coffee, shopping and eateries in the south-east. And apartment developers are tapping into this with some impressive low-rise residential projects. Green, friendly and thriving on its village vibe, Bentleigh offers a relaxed lifestyle and is ever-popular with young couples looking for an enjoyable neighbourhood and families wanting to raise their children amongst leafy streets.

WHO’S NEXT DOOR Go back ten, fifteen years and Bentleigh was one of Melbourne’s old school enclaves. Now, Bentleigh still maintains its position as one of our more traditional neighbourhoods yet has well and truly refreshed itself. As a result, more young professionals have moved in, changing the demographic, and bringing with them a demand for coffee, bars, fresh baked goodies and a more youthful vibe. In Bentleigh, you’ll be neighbours with established families in California bungalows one side and young urban commuters in a contemporary townhouse on the other.

CULTURE Walk down any of Bentleigh’s leafy streets and the atmosphere is decidedly relaxed. Thanks to the provision of all the everyday essential amenities and a wide selection of schools, families love the area and there’s a real sense that people move here to stay for a while.

Add to this the parks, proximity to the beach and the ease of commuting to the city via the Centre Road connection or trains, you have the kind of residential nirvana Melbourne was built on. If you like to work hard during the week and take a well-earned break on the weekend, Bentleigh is one of the best suburbs to take a stroll in.

THE NUMBER GAME One of the most desirable suburbs in the area, demand is appropriately high. And with anything more than the smallest of homes out of the price range of many first home buyers, getting into Bentleigh for most will be via an apartment or townhouse. Currently, a two-bedroom apartment will cost around $660,000, with the rental yield for a similar apartment sitting at around $470 per week.

https://www.apartmentdevelopments.com.au/suburb-profiles/bentleigh

Ground Floor

Private Open Space: 35m2

Private Open Space: 106m2

Private Open Space: 35m2

P G03 Area: 78m2

F G01 Area: 103m

F F

G04 Area: 126m2

Private Open Space: 78m2

G02 Area: 79m2

G07 Area: 81m2

G06 Area: 82m2 G05 Area: 109m2 F

Private Open Space: 40m2

Private Open Space: 73m2

G08 Area: 86m2

RAMP TO CARPARK Private Open Space: 31m2

1 BEDROOM APARTMENTS

Private Open Space: 35m2

2 BEDROOM APARTMENTS

3 BEDROOM APARTMENTS

This floorplan is for marketing purposes only. The information contained in this floorplan has beenproduced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property. This floorplan may be subject to change without notice.

First Floor

Private Open Space: 45m2

Private Open Space: 8m2

Private Open Space: 9m2

1.03 Area: 75m2

1.02 Area: 77m2

Private Open Space: 39m2

F 1.01 Area: 97m

1.07 Area: 80m2

1.06 Area: 80m2

1.08 Area: 92m2

1.04 Area: 83m2

Private Open Space: 14m2

Private Open Space: 23m2

1 BEDROOM APARTMENTS

1.05 Area: 86m2

Private Open Space: 8m2

2 BEDROOM APARTMENTS

3 BEDROOM APARTMENTS

Second Floor

Private Open Space: 53m2 Private Open Space: 14m2

Private Open Space: 15m2

Private Open Space: 41m2

2.04 Area: 82m2 2.02 Area: 69m2

2.03 Area: 68m2

2.01 Area: 89m2

Private Open Space: 23m2

5m2 2.07 Area: 73m2

2.06 Area: 73m2 F

2.08 Area: 79m2

2.05 Area: 58m2

Private Open Space: 13m2

1 BEDROOM APARTMENTS

Private Open Space: 13m2

2 BEDROOM APARTMENTS

Private Open Space: 28m2

3 BEDROOM APARTMENTS

Third Floor

Private Open Space: 78m2 33m2

3.01 Area: 110m2

3.02 Area: 150m2

3.03 Area: 124m2

11m2

Private Open Space: 71m2

1 BEDROOM APARTMENTS

2 BEDROOM APARTMENTS

Private Open Space: 83m2

3 BEDROOM APARTMENTS

Apt. G01 Internal

103m2

External

106m2

Total

209m2

â&#x20AC;&#x201C;

Private Open Space: 106m2

F G01 Area: 103m2

G01

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. G02 Internal

79m2

External

35m2

Total

114m2

â&#x20AC;&#x201C;

Private Open Space: 35m2

G02 Area: 79m2

G02

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. G03 Internal

78m2

External

35m2

Total

113m2

â&#x20AC;&#x201C;

Private Open Space: 35m2

G03 Area: 78m2

G03

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. G04 Internal

126m2

External

78m2

Total

204m2

â&#x20AC;&#x201C;

G04 Area: 126m2

Private Open Space: 78m2

G04

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. G05 Internal

109m2

External

72m2

Total

181m2 G05 Area: 109m2

â&#x20AC;&#x201C;

Private Open Space: 72m2

G05

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. G06 Internal

82m2

External

35m2

Total

117m2

â&#x20AC;&#x201C;

1 G06 Area: 82m2

Private Open Space: 35m2

G06

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. G07 Internal

81m2

External

31m2

Total

112m2

â&#x20AC;&#x201C;

F G07 Area: 81m2

Private Open Space: 31m2

G07

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. G08 Internal

86m2

External

40m2

Total

126m2

â&#x20AC;&#x201C;

1 F G08 Area: 86m2

Private Open Space: 40m2

G08

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 1.01 Internal

97m2

External

45m2

Total

Private Open Space: 45m2

142m2

F 1.01 Area: 97m2

1.01

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 1.02 Internal

77m2

External

8m2

Total

85m2

â&#x20AC;&#x201C;

Private Open Space: 8m2

1.02 Area: 77m2 F

1.02

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 1.03 Internal

75m2

External

9m2

Total

84m2

â&#x20AC;&#x201C;

Private Open Space: 9m2

1.03 Area: 75m2 F

1.03

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 1.04 Internal

83m2

External

39m2

Total

122m2

â&#x20AC;&#x201C;

Private Open Space: 39m2

1.04 Area: 83m2 F

1.04

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 1.05 Internal

86m2

External

23m2

Total

109m2

â&#x20AC;&#x201C;

Private Open Space: 23m2

1.05 Area: 86m2

1.05

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 1.06 Internal

80m2

External

8m2

Total

88m2

F 2

â&#x20AC;&#x201C;

1.06 Area: 80m2

Private Open Space: 8m2

1.06

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 1.07 Internal

80m2

External

8m2

Total

88m2

â&#x20AC;&#x201C;

F 1.07 Area: 80m2

Private Open Space: 8m2

1.07

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 1.08 Internal

92m2

External

14m2

Total

106m2

â&#x20AC;&#x201C;

1.08 Area: 92m2

Private Open Space: 14m2

1.08

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 2.01 Internal

89m2

External

53m2

Total

Private Open Space: 53m2

142m2

â&#x20AC;&#x201C;

P F 2.01 Area: 89m2

2.01

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 2.02 Internal

69m2

External

14m2

Total

83m2

â&#x20AC;&#x201C;

Private Open Space: 14m2

2.02 Area: 69m2 F

2.02

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 2.03 Internal

68m2

External

15m2

Total

83m2

â&#x20AC;&#x201C;

Private Open Space: 15m2

2.03 Area: 68m2 F

2.03

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 2.04 Internal

82m2

External

46m2

Total

Private Open Space: 41m2

128m2 P

â&#x20AC;&#x201C;

F 2.04 Area: 82m2

5m2 2.04

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 2.05 Internal

58m2

External

28m2

Total

86m2

â&#x20AC;&#x201C;

P 2.05 Area: 58m2 F

Private Open Space: 28m2

2.05

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 2.06 Internal

73m2

External

13m2

Total

86m2

â&#x20AC;&#x201C;

F 2.06 Area: 73m2

Private Open Space: 13m2

2.06

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 2.07 Internal

73m2

External

13m2

Total

86m2

â&#x20AC;&#x201C;

F 2.07 Area: 73m2

Private Open Space: 13m2

2.07

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 2.08 Internal

79m2

External

23m2

Total

102m2

â&#x20AC;&#x201C;

2.08 Area: 79m2

Private Open Space: 23m2

2.08

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 3.01 Internal

110m2

External

78m2

Total

188m2

â&#x20AC;&#x201C;

Private Open Space: 78m2

F 3.01 Area: 110m2 P

3.01

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

Apt. 3.02

Private Open Space: 33m2

Internal

150m2

External

116m2

Total

266m2

2 3.02 Area: 150m2 F

3.02

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

Private Open Space: 83m2

sor abentlei gh. com . au

Apt. 3.03 Internal

124m2

External

82m2

Total

206m2

â&#x20AC;&#x201C;

3.03 Area: 124m2 F

Private Open Space: 71m2

11m2

3.03

This floorplan is for marketing purposes only. The information contained in this floorplan has been produced in good faith with due care. This floorplan has been measured in accordance with the Property Council of Australia method of measurement for residential property.

sor abentlei gh. com . au

LOCATION

CODE

DESCRIPTION

Kitchen

ILO691BV OVEN

ILVE Pyrolytic oven Black glass

Kitchen

ILGP64BV COOKTOP

ILVE Gas cooktop 600mm Black glass

Kitchen

IVUM60 RANGEHOOD

ILVE Concealed rangehood 600mm Stainless steel

Kitchen

IV605BV MICROWAVE

ILVE Integrated microwave Black glass

Kitchen

IVDFIP5 DISHWASHER

ILVE Integrated dishwasher

180905 CYGNET FS V8 - DRAFT FOR INTERNAL USE ONLY

PRODUCT IMAGE

LOCATION

CODE

DESCRIPTION

Kitchen

ILREF470B

ILVE Refrigerator /freezer Single door Finish: Black

FRIDGE

*THIS ITEM IS NOT STANDARD SUPPLIED AS A VARIATION UPGRADE ONLY Kitchen

KITCHEN-CYGNET KITCHEN JOINERY

Kitchen + Island bench joinery Shaker style doors 2 Pac in pearl grey satin finish Black knob handles

Kitchen

HANDLE-RKNOB-MB JOINERY HANDLES

Joinery handles Round knob Finish: Matte black

Kitchen

STONE-SLABWHITE BENCHTOPS

Reconstituted stone 20mm Finish: White waterfall ends on island benches (if applicable)

Kitchen

BLKTIL15-MW

Tile 150 x 150mm Square shape laid in 1/3 subway style Finish: Matte white

SPLASHBACK

180905 CYGNET FS V8 - DRAFT FOR INTERNAL USE ONLY

PRODUCT IMAGE

LOCATION

CODE

DESCRIPTION

Kitchen

TILEANGLE15-BLK TILE ANGLE

Tile angle 15mm 3000mm Length Black

Kitchen + Living area + Hallway

TIMFLO-NATURAL FLOORING

Engineered timber flooring 1860 x 189 x 15mm Finish: Natural

Kitchen

M7950SNO SINK

MINERAL Double undermount granite sink Finish: White

Kitchen

ART410MB SINK MIXER

ARTEMUS Sink mixer Finish: Matte black

Kitchen

BWWL SINK BASKET WASTE

Sink basket waste Finish: White

180905 CYGNET FS V8 - DRAFT FOR INTERNAL USE ONLY

PRODUCT IMAGE

LOCATION

CODE

DESCRIPTION

Bathroom

CYGVAN VANITY JOINERY + STONE BENCHTOP

Vanity joinery Melamine wall hung draws Finish: Black woodgrain vinyl wrap Stone benchtop White reconstituted stone

Bathroom

TBC MIRRORED CABINETS

Mirrored wall mounted cabinets Melamine carcass Finish: Black

Bathroom

EVO85MW BASIN

EVO Countertop basin Finish: Matte white

Bathroom

DWMB DOME WASTE

Basin dome waste Finish: Matte black

Bathroom

ART310MB

ARTEMUS Tall basin mixer Finish: Matte black

180905 CYGNET FS V8 - DRAFT FOR INTERNAL USE ONLY

PRODUCT IMAGE

LOCATION

CODE

DESCRIPTION

Bathroom

VOG703MB TOILET ROLL HOLDER

VOGUE Toilet roll holder Finish : Matte black

Bathroom

VOG705MB

VOGUE Double towel rail 600mm Finish: Matte black

TOWEL RAIL

Bathroom

TBC SHOWER SCREEN

Shower screen Glass panel

Bathroom

SHWR180-MB SHWHR180W-MB SHOWER HINGES

Hinges Chanel Shower door knobs Finish: Matte black

SHWCHANNEL-MB CHANNEL SHWRNDKNOB-MB KNOBS

Bathroom

VOG709MB ROBE HOOK

VOGUE Robe hook Finish ; Matte black

180905 CYGNET FS V8 - DRAFT FOR INTERNAL USE ONLY

PRODUCT IMAGE

LOCATION

CODE

DESCRIPTION

Bathroom

VOG704MB HAND TOWEL RING

VOGUE Hand towel ring Finish: Matte black

Bathroom

SSH250-MB SHOWER HEAD

SIRCA Shower head 250 x 250mm Finish: Matte black

Bathroom

CYDUOSRAIL-MB SHOWER RAIL

CYGNET Dual integrated gooseneck shower rail Finish: Matte black

Bathroom

HOSEMB SHOWER HOSE

Shower hose 1500mm Finish: Matte black

Bathroom

SHS01-MB HAND SHOWER

SIRCA Single function hand shower Finish: Matte black

180905 CYGNET FS V8 - DRAFT FOR INTERNAL USE ONLY

PRODUCT IMAGE

LOCATION

CODE

DESCRIPTION

Bathroom

A200MB WALL MIXER

ARTEMUS Wall mixer Finish: Matte black OPTIONAL

Bathroom

A210MB DIVERTER MIXER

ARTEMUS Diverter mixer Finish: Matte black

STANDARD

Bathroom

VMSS-MB SHOWER SHELF

Vogue metal shower shelf Finish: Matte black

Bathroom

STONETILE-CRE FLOOR TILE

Stony Creek tile 600 x 600mm Finish: Greys

Bathroom

STONETILE-CRE WALL TILE

Stoney Creek tile 600 x 600mm Finish: Greys

180820 CYGNET V6- 13-15 HAMILTON ST, BENTLEIGH

PRODUCT IMAGE

LOCATION

CODE

DESCRIPTION

Bathroom

TILEANGLE10-BLK TILE ANGLE

Tile angle 10mm 3000mm Length Black

Bathroom

BLKTILE20-MW FEATURE TILE/SHOWER WALL

Block tile 200 x 200mm Square shape laid in subway style Finish: Matte white

Bathroom

BATH-DI15MWA BATH

Kosmas drop-in bath 1500mm Acrylic Matte white OPTIONAL

Bathroom

BATHPLUG-MB BATH PLUB

Bath plug

OPTIONAL

Bathroom

S610MB BATH SPOUT

SIRCA Swivel bath spout Finish: Matte black

OPTIONAL

180905 CYGNET FS V8 - DRAFT FOR INTERNAL USE ONLY

PRODUCT IMAGE

LOCATION

CODE

DESCRIPTION

Bathroom

MT1500.01 MT1500.02 TOILET

EDIE Toilet Finish: White

180905 CYGNET FS V8 - DRAFT FOR INTERNAL USE ONLY

PRODUCT IMAGE

LOCATION

CODE

DESCRIPTION

Bedroom

ROBE-DIAMOND WARDROBE

DIAMOND Melamine carcass with mirror sliding doors Finish : Woodgrain

Bedroom

HANDLE-LS-MB CUPBOARD HANDLES

Cupboard handlesâ&#x20AC;&#x201D;Small Finish; Matte black

Bedroom

ROBEACCES2 WARDROBE ACCESSORIES

Shoe rack

Bedroom

ROBEACCES3 WARDROBE ACCESSORIES

Accessories draw

Bedroom

ROBEACCES4 WARDROBE ACCESSORIES

Trouser rack

180905 CYGNET FS V8 - DRAFT FOR INTERNAL USE ONLY

PRODUCT IMAGE

LOCATION

CODE

DESCRIPTION

Bedroom

CARPET-LOOPCHAR CARPET

Carpet Wool loop pile Colour: Charcoal

Bedroom

ROBEACCES1 WARDROBE ACCESSORIES

Hydraulic hanger

180905 CYGNET FS V8 - DRAFT FOR INTERNAL USE ONLY

PRODUCT IMAGE

LOCATION

CODE

DESCRIPTION

Laundry

LAUNDRY-A-KS JOINERY

Laundry joinery Melamine and 2pac Finish: White satin Stone benchtop 20mm Finish: White

Laundry

HANDLE-LL-MB CUPBOARD HANDLES

Cupboard handles â&#x20AC;&#x201C;Large Finish; Matte black

Laundry

BLKTILE15-MW SPLASHBACK

Block tile 150 x 150mm Finish ; Matte white

Laundry

STONETILE-CRE FLOOR TILE

Stoney Creek tile 600 x 600mm Finish: Greys

Laundry

ART410MB SINK MIXER

ARTEMUS Sink mixer Finish: Matte black

180905 CYGNET FS V8 - DRAFT FOR INTERNAL USE ONLY

PRODUCT IMAGE

LOCATION

CODE

DESCRIPTION

Laundry

V0403920TT SINK

VIRTUS Single sink Colour: Titanium charcoal

Laundry

BWT SINK BASKET WASTE

Sink basket waste Finish: Titanium charcoal

General

TBC DOOR HANDLE

Door handle Finish: Matte black

Balcony

FHF45 PAVER

Paver Bluestone

Balcony

TBC TILE ACCESSORIES

Pods Standard

180905 CYGNET FS V8 - DRAFT FOR INTERNAL USE ONLY

PRODUCT IMAGE

ESTIMATES OF ASSOCIATED FEES ‘Sora’ Apartments Bentleigh, 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)

1 Bed – Option 1

$1,483.10

$29,553.10

$68,053.10

$1,698.77

$1,900.00

$800.00

2 Bed – Option 1

$7,086.43

$34,228.10

$77,978.10

$1,935.65

$1,900.00

$800.00

2 Bed – Option 2

$42,070.10

$42,021.10

$94,521.10

$2,321.42

$1,900.00

$800.00

2 Bed – Option 3

$50,125.10

$111,725.10

$2,625.98

$1,900.00

$800.00

3 Bed – Option 1

$61,836.10

$137,086.10

$3,323.09

$1,900.00

$800.00

3 Bed – Option 2

$83,339.10

$184,839.10

$4,487.18

$1,900.00

$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.

Nyko Property - Melbourne 22-Oct-2018 Prepared for: Consultant: Property: 13 - 15 Hamilton Street, Bentleigh, VIC, 3204 Description: 2 Bed, 2 Bath, 1 Car SUMMARY Assumptions Property value Initial investment Gross rental yield (yr 1) Net rental yield (yr 1) Cap. growth rate Inflation rate Interest rate Taxable income (yr 1)

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

$625,000 $0 4.08% 2.86% 6.00% 3.00% 4.75% $80,000

10 yrs $1.119m $458,552 51.26% $333,582 $147,928 $310,624 44.52%

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

2018 $625,000 $35,228 $0 $660,728 $-35,728 6.00% 3.00% $500

1yr 662,500

Projections over 10 years 2yr 3yr 5yr 702,250 744,385 836,391

660,728 1,772 6.00% 3.00% 25,480

660,728 41,522 6.00% 3.00% 26,754

660,728 83,657 6.00% 3.00% 28,092

660,728 175,663 6.00% 3.00% 30,971

660,728 458,552 6.00% 3.00% 39,528

4.75% 29.24% $0

31,385 7,603 -13,507

31,385 7,831 -12,461

31,385 8,066 -11,359

31,385 8,557 -8,970

31,385 9,920 -1,777

2.50% $32,962 $500

7,535 6,664 100 53,286 9,671 -3,836

7,535 7,535 7,535 5,495 4,241 2,508 100 100 100 52,345 51,326 50,084 8,957 8,195 6,951 -3,504 -3,164 -2,019 Your income /(cost) per week (67) (61) (39)

7,535 839

$80,000 $0 51.26% 83.36%

(74)

10yr 1.119m

49,678 3,908 2,131 41

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. .

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:

625,000 0 625,000 $625,000

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 34,228 $35,228

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 625,000 0 35,228 0 500 $660,728

Total Cost 625,000 0 35,228 0 500 $660,728

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

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 836,391 660,728 $175,663

10 yrs 1.119m 660,728 $458,552

15 yrs 1.498m 660,728 $837,121

20 yrs 2.004m 660,728 $1.344m

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

40,509 4,182 19,127 $111,845

116,981 5,596 25,350 $310,624

213,526 7,489 33,679 $582,427

339,402 10,022 44,824 $949,484

Page 3 INTEREST COSTS & TYPE OF LOAN The type of loan can be either interest-only and/or principal & interest. Repayments for interest-only loans, as the title suggests, consist of interest only. Repayments for principal & interest loans include a component of the principal. Interest-only loans are usually of a shorter term (e.g. 3 to 5 years) at which time they are usually rolled-over. Loan type: Interest rate (yr 1) (%) Loan: Loan costs (written off over 5 yrs): Monthly payment: Annual payment:

I/O Yrs 1-40 4.75 $660,728 $500 $2,615 $31,385

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:

500 26,000 2.00 $25,480

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 (6.60%): Letting fees: Rates: Insurance: Body corporate: Special expenses: Total expenses:

1,682 500 2,700 400 2,321 0 $7,603

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

29.24 2.86

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 25,480 0 0 31,385 7,603 $-13,507

2yr 26,754 0 0 31,385 7,831 $-12,461

3yr 28,092 0 0 31,385 8,066 $-11,359

5yr 30,971 0 0 31,385 8,557 $-8,970

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

$625,000 $301,386 2.50 $7,535

10yr 39,528 0 0 31,385 9,920 $-1,777

Page 4 DEPRECIATION OF FITTINGS (annual claim) Total value of fittings: Total depreciation in first year:

$32,962 $6,664

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

500 $500

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

1yr 31,385 7,603 7,535 6,664 100 $53,286

2yr 31,385 7,831 7,535 5,495 100 $52,345

3yr 31,385 8,066 7,535 4,241 100 $51,326

5yr 31,385 8,557 7,535 2,508 100 $50,084

10yr 31,385 9,920 7,535 839 0 $49,678

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 2018 Pre-tax cash flow 0 Tax credits After-tax cash 0 Income /(cost) per week

1yr -13,507 9,671 -3,836 (74)

2yr -12,461 8,957 -3,504 (67)

3yr -11,359 8,195 -3,164 (61)

5yr -8,970 6,951 -2,019 (39)

10yr -1,777 3,908 2,131 41

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

2018 $0

1yr $-3,836

2yr $-3,504

3yr $-3,164

5yr $-2,019

10yr $2,131 $458,552

The total amount in your "account" (including interest) at the end of the period is the equity ($458,552) in the investment property. The IRR (51.26%) 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 83.36% before tax. If the property were to be sold at the end of the period, the after-sale equity would be reduced to $310,624 after taking account of selling costs and capital gains tax and the IRR after the sale would be 44.52%.

Page 5 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 25,480 105,480 53,286 52,194

Current tax (on 80,000): New tax (on 52,194): Tax saving:

18,747 9,076 9,671

Total tax credits:

$9,671

Who pays the cost (1st year)?

65% Tenant

10% You

25% 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

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

Interest costs

Rental expenses

Total cost

Rent (tenant)

Tax credit (taxman)

$31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385

$7,603 $7,831 $8,066 $8,308 $8,557 $8,814 $9,078 $9,350 $9,631 $9,920 $10,217 $10,524 $10,840 $11,165 $11,500 $11,845 $12,200 $12,566 $12,943 $13,331 $13,731 $14,143 $14,568

$38,987 $39,215 $39,450 $39,692 $39,941 $40,198 $40,463 $40,735 $41,015 $41,304 $41,602 $41,908 $42,224 $42,549 $42,884 $43,229 $43,585 $43,951 $44,328 $44,716 $45,116 $45,528 $45,952

$25,480 $26,754 $28,092 $29,496 $30,971 $32,520 $34,146 $35,853 $37,646 $39,528 $41,504 $43,579 $45,758 $48,046 $50,449 $52,971 $55,620 $58,401 $61,321 $64,387 $67,606 $70,986 $74,536

$9,671 $8,957 $8,195 $7,461 $6,951 $6,382 $6,017 $5,332 $4,677 $3,908 $2,939 $2,257 $1,540 $785 $-11 $-850 $-1,733 $-2,662 $-3,641 $-4,672 $-5,758 $-6,901 $-8,104

Cash (you) $3,836 $3,504 $3,164 $2,735 $2,019 $1,297 $300 $-450 $-1,307 $-2,131 $-2,841 $-3,928 $-5,074 $-6,282 $-7,553 $-8,892 $-10,302 $-11,788 $-13,352 $-14,999 $-16,732 $-18,558 $-20,480

Page 6 24yr 25yr

$0 $0

$31,385 $31,385

$15,005 $15,455

$46,389 $46,839

$78,262 $82,176

$-9,549 $-11,538

$-22,324 $-23,798

Page 7

(%) 100.00

Who pays the costs (10 years)

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 (80%) Taxman (17%) You (3%) Average contribution (10 years)

80% Tenant 3% You 17% Taxman

Page 8

($) 3.000m

Investment Property Value & Debt

2.000m

1.000m

0 0

10 15 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 $625,000 $662,500 $702,250 $744,385 $789,048 $836,391 $886,574 $939,769 $996,155 $1.056m $1.119m $1.186m $1.258m $1.333m $1.413m $1.498m $1.588m $1.683m $1.784m $1.891m $2.004m $2.125m $2.252m $2.387m $2.531m $2.682m

Amount owing $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728 $660,728

Equity $-35,728 $1,772 $41,522 $83,657 $128,320 $175,663 $225,846 $279,041 $335,427 $395,196 $458,552 $525,709 $596,895 $672,352 $752,337 $837,121 $926,992 $1.022m $1.123m $1.230m $1.344m $1.464m $1.591m $1.727m $1.870m $2.022m

Page 9

$/week 1,000

Average Projected Weekly Cash Flow & Equity Growth

700 400 100 -200 -500 -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 $-25 per week while the average equity growth is $951 per week. INVESTMENT CASH FLOW Cash In Rental income Tax credits Total

Total (10 years) 320,485 67,551 388,036

Average (per week) 746

Cash Out Cash outlays Principal payments Interest payments Rental expenses Total

0 0 313,846 87,156 401,002

771

Net After-Tax Cash Flow

-12,966

-25

INVESTMENT GROWTH

Property value Loan amount Equity

Initial

10 yrs

Change

625,000 660,728 -35,728

1.119m 660,728 458,552

494,280 0 494,280

Average (per week) 951 0 951

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

$625,000 $0 4.08% 2.86% 6.00% 3.00% 4.75% $100,000

10 yrs $1.119m $458,552 55.36% $336,770 $150,015 $308,536 48.37%

2018 $625,000 $35,228 $0 $660,728 $-35,728 6.00% 3.00% $500

1yr 662,500

Projections over 10 years 2yr 3yr 5yr 702,250 744,385 836,391

660,728 1,772 6.00% 3.00% 25,480

660,728 41,522 6.00% 3.00% 26,754

660,728 83,657 6.00% 3.00% 28,092

660,728 175,663 6.00% 3.00% 30,971

660,728 458,552 6.00% 3.00% 39,528

4.75% 29.24% $0

31,385 7,603 -13,507

31,385 7,831 -12,461

31,385 8,066 -11,359

31,385 8,557 -8,970

31,385 9,920 -1,777

2.50% $32,962 $500

7,535 6,664 100 53,286 10,354 -3,153

7,535 7,535 7,535 5,495 4,241 2,508 100 100 100 52,345 51,326 50,084 9,736 8,946 7,358 -2,725 -2,413 -1,612 Your income /(cost) per week (52) (46) (31)

7,535 839

$100,000 $0 55.36% 90.02%

(61)

10yr 1.119m

49,678 3,908 2,131 41

625,000 0 625,000 $625,000

1,000 34,228 $35,228

Investments 0 0 0 0 0 $0

Loan 625,000 0 35,228 0 500 $660,728

Total Cost 625,000 0 35,228 0 500 $660,728

3.00 6.00

5 yrs 836,391 660,728 $175,663

10 yrs 1.119m 660,728 $458,552

15 yrs 1.498m 660,728 $837,121

20 yrs 2.004m 660,728 $1.344m

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

42,495 4,182 19,127 $109,860

119,069 5,596 25,350 $308,536

215,946 7,489 33,679 $580,007

341,608 10,022 44,824 $947,277

I/O Yrs 1-40 4.75 $660,728 $500 $2,615 $31,385

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

500 26,000 2.00 $25,480

1,682 500 2,700 400 2,321 0 $7,603

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

29.24 2.86

1yr 25,480 0 0 31,385 7,603 $-13,507

2yr 26,754 0 0 31,385 7,831 $-12,461

3yr 28,092 0 0 31,385 8,066 $-11,359

5yr 30,971 0 0 31,385 8,557 $-8,970

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

$625,000 $301,386 2.50 $7,535

10yr 39,528 0 0 31,385 9,920 $-1,777

Page 4 DEPRECIATION OF FITTINGS (annual claim) Total value of fittings: Total depreciation in first year:

$32,962 $6,664

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

1yr 31,385 7,603 7,535 6,664 100 $53,286

2yr 31,385 7,831 7,535 5,495 100 $52,345

3yr 31,385 8,066 7,535 4,241 100 $51,326

5yr 31,385 8,557 7,535 2,508 100 $50,084

10yr 31,385 9,920 7,535 839 0 $49,678

1yr -13,507 10,354 -3,153 (61)

2yr -12,461 9,736 -2,725 (52)

3yr -11,359 8,946 -2,413 (46)

5yr -8,970 7,358 -1,612 (31)

10yr -1,777 3,908 2,131 41

2018 $0

1yr $-3,153

2yr $-2,725

3yr $-2,413

5yr $-1,612

10yr $2,131 $458,552

The total amount in your "account" (including interest) at the end of the period is the equity ($458,552) in the investment property. The IRR (55.36%) 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 90.02% before tax. If the property were to be sold at the end of the period, the after-sale equity would be reduced to $308,536 after taking account of selling costs and capital gains tax and the IRR after the sale would be 48.37%.

Page 5 TAX BENEFITS These are shown below for the given taxable incomes and are based on the specified tax scale. Number of properties: 1 Investor 100,000 25,480 125,480 53,286 72,194

Current taxable income: Rental income: Total income: Rental deductions: New taxable income: Current tax (on 100,000): New tax (on 72,194): Tax saving:

26,447 16,093 10,354

Total tax credits:

$10,354

Who pays the cost (1st year)?

65% Tenant

8% You

27% 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

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

Interest costs

Rental expenses

Total cost

Rent (tenant)

Tax credit (taxman)

$31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385

$7,603 $7,831 $8,066 $8,308 $8,557 $8,814 $9,078 $9,350 $9,631 $9,920 $10,217 $10,524 $10,840 $11,165 $11,500 $11,845 $12,200 $12,566 $12,943 $13,331 $13,731 $14,143 $14,568

$38,987 $39,215 $39,450 $39,692 $39,941 $40,198 $40,463 $40,735 $41,015 $41,304 $41,602 $41,908 $42,224 $42,549 $42,884 $43,229 $43,585 $43,951 $44,328 $44,716 $45,116 $45,528 $45,952

$25,480 $26,754 $28,092 $29,496 $30,971 $32,520 $34,146 $35,853 $37,646 $39,528 $41,504 $43,579 $45,758 $48,046 $50,449 $52,971 $55,620 $58,401 $61,321 $64,387 $67,606 $70,986 $74,536

$10,354 $9,736 $8,946 $8,067 $7,358 $6,577 $6,022 $5,332 $4,677 $3,908 $2,939 $2,258 $1,540 $785 $-11 $-849 $-1,733 $-2,662 $-3,641 $-5,271 $-6,954 $-8,334 $-9,787

Cash (you) $3,153 $2,725 $2,413 $2,129 $1,612 $1,102 $295 $-450 $-1,307 $-2,131 $-2,841 $-3,929 $-5,074 $-6,282 $-7,553 $-8,893 $-10,302 $-11,788 $-13,352 $-14,400 $-15,536 $-17,125 $-18,797

Page 6 24yr 25yr

$0 $0

$31,385 $31,385

$15,005 $15,455

$46,389 $46,839

$78,262 $82,176

$-11,317 $-12,928

$-20,556 $-22,408

Page 7

(%) 100.00

Who pays the costs (10 years)

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 (80%) Taxman (18%) You (2%) Average contribution (10 years)

80% Tenant 2% You 18% Taxman

Page 8

($) 3.000m

Investment Property Value & Debt

2.000m

1.000m

0 0

10 15 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%

Page 9

$/week 1,000

Average Projected Weekly Cash Flow & Equity Growth

700 400 100 -200 -500 -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 $-18 per week while the average equity growth is $951 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) 320,485 70,977 391,462

Average (per week) 753

0 0 313,846 87,156 401,002

771

-9,540

-18

INVESTMENT GROWTH

Property value Loan amount Equity

Initial

10 yrs

Change

625,000 660,728 -35,728

1.119m 660,728 458,552

494,280 0 494,280

Average (per week) 951 0 951

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

$625,000 $0 4.08% 2.86% 6.00% 3.00% 4.75% $150,000

10 yrs $1.119m $458,552 56.69% $338,752 $154,789 $303,763 49.38%

2018 $625,000 $35,228 $0 $660,728 $-35,728 6.00% 3.00% $500

1yr 662,500

Projections over 10 years 2yr 3yr 5yr 702,250 744,385 836,391

660,728 1,772 6.00% 3.00% 25,480

660,728 41,522 6.00% 3.00% 26,754

660,728 83,657 6.00% 3.00% 28,092

660,728 175,663 6.00% 3.00% 30,971

660,728 458,552 6.00% 3.00% 39,528

4.75% 29.24% $0

31,385 7,603 -13,507

31,385 7,831 -12,461

31,385 8,066 -11,359

31,385 8,557 -8,970

31,385 9,920 -1,777

2.50% $32,962 $500

7,535 6,664 100 53,286 10,705 -2,802

7,535 7,535 7,535 5,495 4,241 2,508 100 100 100 52,345 51,326 50,084 9,853 8,945 7,358 -2,608 -2,414 -1,612 Your income /(cost) per week (50) (46) (31)

7,535 839

$150,000 $0 56.69% 92.18%

(54)

10yr 1.119m

49,678 4,720 2,943 57

625,000 0 625,000 $625,000

1,000 34,228 $35,228

Investments 0 0 0 0 0 $0

Loan 625,000 0 35,228 0 500 $660,728

Total Cost 625,000 0 35,228 0 500 $660,728

3.00 6.00

5 yrs 836,391 660,728 $175,663

10 yrs 1.119m 660,728 $458,552

15 yrs 1.498m 660,728 $837,121

20 yrs 2.004m 660,728 $1.344m

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

46,997 4,182 19,127 $105,358

123,843 5,596 25,350 $303,763

218,243 7,489 33,679 $577,710

341,608 10,022 44,824 $947,277

I/O Yrs 1-40 4.75 $660,728 $500 $2,615 $31,385

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

500 26,000 2.00 $25,480

1,682 500 2,700 400 2,321 0 $7,603

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

29.24 2.86

1yr 25,480 0 0 31,385 7,603 $-13,507

2yr 26,754 0 0 31,385 7,831 $-12,461

3yr 28,092 0 0 31,385 8,066 $-11,359

5yr 30,971 0 0 31,385 8,557 $-8,970

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

$625,000 $301,386 2.50 $7,535

10yr 39,528 0 0 31,385 9,920 $-1,777

Page 4 DEPRECIATION OF FITTINGS (annual claim) Total value of fittings: Total depreciation in first year:

$32,962 $6,664

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

1yr 31,385 7,603 7,535 6,664 100 $53,286

2yr 31,385 7,831 7,535 5,495 100 $52,345

3yr 31,385 8,066 7,535 4,241 100 $51,326

5yr 31,385 8,557 7,535 2,508 100 $50,084

10yr 31,385 9,920 7,535 839 0 $49,678

1yr -13,507 10,705 -2,802 (54)

2yr -12,461 9,853 -2,608 (50)

3yr -11,359 8,945 -2,414 (46)

5yr -8,970 7,358 -1,612 (31)

10yr -1,777 4,720 2,943 57

2018 $0

1yr $-2,802

2yr $-2,608

3yr $-2,414

5yr $-1,612

10yr $2,943 $458,552

The total amount in your "account" (including interest) at the end of the period is the equity ($458,552) in the investment property. The IRR (56.69%) 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 92.18% before tax. If the property were to be sold at the end of the period, the after-sale equity would be reduced to $303,763 after taking account of selling costs and capital gains tax and the IRR after the sale would be 49.38%.

Page 5 TAX BENEFITS These are shown below for the given taxable incomes and are based on the specified tax scale. Number of properties: 1 Investor 150,000 25,480 175,480 53,286 122,194

Current taxable income: Rental income: Total income: Rental deductions: New taxable income: Current tax (on 150,000): New tax (on 122,194): Tax saving:

45,697 34,992 10,705

Total tax credits:

$10,705

Who pays the cost (1st year)?

65% Tenant 7% You

27% 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

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

Interest costs

Rental expenses

Total cost

Rent (tenant)

Tax credit (taxman)

$31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385

$7,603 $7,831 $8,066 $8,308 $8,557 $8,814 $9,078 $9,350 $9,631 $9,920 $10,217 $10,524 $10,840 $11,165 $11,500 $11,845 $12,200 $12,566 $12,943 $13,331 $13,731 $14,143 $14,568

$38,987 $39,215 $39,450 $39,692 $39,941 $40,198 $40,463 $40,735 $41,015 $41,304 $41,602 $41,908 $42,224 $42,549 $42,884 $43,229 $43,585 $43,951 $44,328 $44,716 $45,116 $45,528 $45,952

$25,480 $26,754 $28,092 $29,496 $30,971 $32,520 $34,146 $35,853 $37,646 $39,528 $41,504 $43,579 $45,758 $48,046 $50,449 $52,971 $55,620 $58,401 $61,321 $64,387 $67,606 $70,986 $74,536

$10,705 $9,853 $8,945 $8,067 $7,358 $6,577 $6,023 $5,691 $5,478 $4,720 $3,549 $2,726 $1,860 $947 $-14 $-1,027 $-2,093 $-3,216 $-4,398 $-5,643 $-6,955 $-8,334 $-9,788

Cash (you) $2,802 $2,608 $2,414 $2,129 $1,612 $1,102 $294 $-809 $-2,108 $-2,943 $-3,451 $-4,397 $-5,394 $-6,444 $-7,550 $-8,715 $-9,942 $-11,234 $-12,595 $-14,028 $-15,535 $-17,125 $-18,796

Page 6 24yr 25yr

$0 $0

$31,385 $31,385

$15,005 $15,455

$46,389 $46,839

$78,262 $82,176

$-11,317 $-12,928

$-20,556 $-22,408

Page 7

(%) 100.00

Who pays the costs (10 years)

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 (80%) Taxman (18%) You (2%) Average contribution (10 years)

80% Tenant 2% You 18% Taxman

Page 8

($) 3.000m

Investment Property Value & Debt

2.000m

1.000m

0 0

10 15 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%

Page 9

$/week 1,000

Average Projected Weekly Cash Flow & Equity Growth

700 400 100 -200 -500 -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 $-14 per week while the average equity growth is $951 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) 320,485 73,417 393,902

Average (per week) 758

0 0 313,846 87,156 401,002

771

-7,100

-14

INVESTMENT GROWTH

Property value Loan amount Equity

Initial

10 yrs

Change

625,000 660,728 -35,728

1.119m 660,728 458,552

494,280 0 494,280

Average (per week) 951 0 951

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

$625,000 $0 4.08% 2.86% 6.00% 3.00% 4.75% $250,000

10 yrs $1.119m $458,552 89.17% $350,405 $154,789 $303,763 80.99%

2018 $625,000 $35,228 $0 $660,728 $-35,728 6.00% 3.00% $500

1yr 662,500

Projections over 10 years 2yr 3yr 5yr 702,250 744,385 836,391

660,728 1,772 6.00% 3.00% 25,480

660,728 41,522 6.00% 3.00% 26,754

660,728 83,657 6.00% 3.00% 28,092

660,728 175,663 6.00% 3.00% 30,971

660,728 458,552 6.00% 3.00% 39,528

4.75% 29.24% $0

31,385 7,603 -13,507

31,385 7,831 -12,461

31,385 8,066 -11,359

31,385 8,557 -8,970

31,385 9,920 -1,777

2.50% $32,962 $500

7,535 6,664 100 53,286 12,930 -577

7,535 7,535 7,535 5,495 4,241 2,508 100 100 100 52,345 51,326 50,084 11,900 10,804 8,887 -561 -555 -83 Your income /(cost) per week (11) (11) (2)

7,535 839

$250,000 $0 89.17% 166.67%

(11)

10yr 1.119m

49,678 4,720 2,943 57

625,000 0 625,000 $625,000

1,000 34,228 $35,228

Investments 0 0 0 0 0 $0

Loan 625,000 0 35,228 0 500 $660,728

Total Cost 625,000 0 35,228 0 500 $660,728

3.00 6.00

5 yrs 836,391 660,728 $175,663

10 yrs 1.119m 660,728 $458,552

15 yrs 1.498m 660,728 $837,121

20 yrs 2.004m 660,728 $1.344m

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

49,420 4,182 19,127 $102,935

123,843 5,596 25,350 $303,763

218,243 7,489 33,679 $577,710

341,608 10,022 44,824 $947,277

I/O Yrs 1-40 4.75 $660,728 $500 $2,615 $31,385

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

500 26,000 2.00 $25,480

1,682 500 2,700 400 2,321 0 $7,603

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

29.24 2.86

1yr 25,480 0 0 31,385 7,603 $-13,507

2yr 26,754 0 0 31,385 7,831 $-12,461

3yr 28,092 0 0 31,385 8,066 $-11,359

5yr 30,971 0 0 31,385 8,557 $-8,970

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

$625,000 $301,386 2.50 $7,535

10yr 39,528 0 0 31,385 9,920 $-1,777

Page 4 DEPRECIATION OF FITTINGS (annual claim) Total value of fittings: Total depreciation in first year:

$32,962 $6,664

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

1yr 31,385 7,603 7,535 6,664 100 $53,286

2yr 31,385 7,831 7,535 5,495 100 $52,345

3yr 31,385 8,066 7,535 4,241 100 $51,326

5yr 31,385 8,557 7,535 2,508 100 $50,084

10yr 31,385 9,920 7,535 839 0 $49,678

1yr -13,507 12,930 -577 (11)

2yr -12,461 11,900 -561 (11)

3yr -11,359 10,804 -555 (11)

5yr -8,970 8,887 -83 (2)

10yr -1,777 4,720 2,943 57

2018 $0

1yr $-577

2yr $-561

3yr $-555

5yr $-83

10yr $2,943 $458,552

The total amount in your "account" (including interest) at the end of the period is the equity ($458,552) in the investment property. The IRR (89.17%) 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 166.67% before tax. If the property were to be sold at the end of the period, the after-sale equity would be reduced to $303,763 after taking account of selling costs and capital gains tax and the IRR after the sale would be 80.99%.

Page 5 TAX BENEFITS These are shown below for the given taxable incomes and are based on the specified tax scale. Number of properties: 1 Investor 250,000 25,480 275,480 53,286 222,194

Current taxable income: Rental income: Total income: Rental deductions: New taxable income: Current tax (on 250,000): New tax (on 222,194): Tax saving:

89,797 76,867 12,930

Total tax credits:

$12,930

Who pays the cost (1st year)?

65% Tenant

1% You

33% 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

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

Interest costs

Rental expenses

Total cost

Rent (tenant)

Tax credit (taxman)

$31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385 $31,385

$7,603 $7,831 $8,066 $8,308 $8,557 $8,814 $9,078 $9,350 $9,631 $9,920 $10,217 $10,524 $10,840 $11,165 $11,500 $11,845 $12,200 $12,566 $12,943 $13,331 $13,731 $14,143 $14,568

$38,987 $39,215 $39,450 $39,692 $39,941 $40,198 $40,463 $40,735 $41,015 $41,304 $41,602 $41,908 $42,224 $42,549 $42,884 $43,229 $43,585 $43,951 $44,328 $44,716 $45,116 $45,528 $45,952

$25,480 $26,754 $28,092 $29,496 $30,971 $32,520 $34,146 $35,853 $37,646 $39,528 $41,504 $43,579 $45,758 $48,046 $50,449 $52,971 $55,620 $58,401 $61,321 $64,387 $67,606 $70,986 $74,536

$12,930 $11,900 $10,804 $9,743 $8,887 $7,944 $7,274 $6,440 $5,649 $4,720 $3,549 $2,726 $1,860 $947 $-13 $-1,026 $-2,093 $-3,215 $-4,398 $-5,643 $-6,955 $-8,335 $-9,788

Cash (you) $577 $561 $555 $453 $83 $-265 $-957 $-1,558 $-2,279 $-2,943 $-3,451 $-4,397 $-5,394 $-6,444 $-7,551 $-8,716 $-9,942 $-11,235 $-12,595 $-14,028 $-15,535 $-17,124 $-18,796

Page 6 24yr 25yr

$0 $0

$31,385 $31,385

$15,005 $15,455

$46,389 $46,839

$78,262 $82,176

$-11,318 $-12,928

$-20,555 $-22,408

Page 7

(%) 100.00

Who pays the costs (10 years)

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 (79%) Taxman (21%) You (0%) Average contribution (10 years)

79% Tenant

21% Taxman

Page 8

($) 3.000m

Investment Property Value & Debt

2.000m

1.000m

0 0

10 15 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%

Page 9

$/week 1,000

Average Projected Weekly Cash Flow & Equity Growth

700 400 100 -200 -500 -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 $11 per week while the average equity growth is $951 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) 320,485 86,291 406,776

Average (per week) 782

0 0 313,846 87,156 401,002

771

5,774

INVESTMENT GROWTH

Property value Loan amount Equity

Initial

10 yrs

Change

625,000 660,728 -35,728

1.119m 660,728 458,552

494,280 0 494,280

Average (per week) 951 0 951

RD 3

PARTY VALIDATION

Friday, 19 October 2018

RE: Property:

Rental Appraisal SORA Apartments 13-15 Hamilton St, Bentleigh

We are pleased to provide you with an opinion of the current market rental for the above-mentioned properties. After comparing these properties with recently listed and leased similar properties in the surrounding area, we feel the expected rental prices in today’s market would be as follows: • • • •

1 Bedroom unit 2 Bedroom unit Unit G01 3 Bedroom unit

$400 - $420 per week $500 - $530 per week $550 - $575 per week $600 - $650 per week

Whilst every care is taken to prepare this letter from information and sources we believe to be accurate and reliable, we cannot accept any legal responsibility for any error or omission which may inadvertently occur. So, in accordance with our usual practice, any responsibility to third parties is specifically excluded. Should you require any further information or if we can be of assistance with the leasing and ongoing management of your property, please don’t hesitate to contact me directly. Yours Sincerely Mayfair Property Management & Protection

Lauren Allingham Director 0438 340 390

Sora 13-15 Hamilton Street BENTLEIGH VIC 3204

BMT Tax Depreciation QUANTITY SURVEYORS

Level 50, 120 Collins Street Melbourne VIC 3000 GPO Box 4260 Melbourne VIC 3001 t 03 9654 2233 e info@bmtqs.com.au f 03 9654 2244 w www.bmtqs.com.au Australia Wide Service

ABN 44 115 282 392

25 September, 2018 Steller Residential Pty Ltd 840 Dandenong Road CAULFIELD EAST VIC 3145 13-15 Hamilton Street, BENTLEIGH VIC 3204 - 615158 Dear Sir/Madam, Please find attached the BMT Tax Depreciation Estimates for the above property detailing the depreciation and associated tax allowances that may be available to the owner under the Income Tax Assessment Act 1997 (ITAA97). This document is intended to provide a guide to the potential depreciation and building allowances available from the purchase of the above residential property, facilitating the estimation of the after tax return on the investment over the first 10 full years of ownership. 1.0 Information The following information was used in the preparation of the schedules:

Written and verbal information provided by Steller Residential Pty Ltd.

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

§ §

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

The depreciation of plant and equipment items is based on the diminishing value effective life rates as published by the commissioner of taxation (2015/2). In the scenario where plant and equipment items are not sold at an agreed value these items will be depreciated on the basis of a just attribution of the total expenditure (division 40 ITAA97). 3.0 Capital Work Allowance The special building write off allowance is based on the industry specific eligible dates. If the property qualifies for the special building write off, the applicable depreciation rate will be used. Where properties do not qualify for the special building write off allowance, no capital works allowance will be used. The allowance for capital works will be based on the historical cost of construction less nondepreciable items.

Maximising Property Tax Depreciation Deductions 615158

BMTTax Depreciation QUANTITY SURVEYORS

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

BMT Tax Depreciation Pty Ltd Quantity Surveyors

Maximising Property Tax Depreciation Deductions 615158

BMTTax Depreciation QUANTITY SURVEYORS

Appendix One BMT Tax Depreciation Estimate Sora 13-15 Hamilton Street BENTLEIGH VIC 3204

Maximising Property Tax Depreciation Deductions 615158

BMT Tax Depreciation

Level 50, 120 Collins Street Melbourne VIC 3000 GPO Box 4260 Melbourne VIC 3001

QUANTITY SURVEYORS

t 03 9654 2233 e info@bmtqs.com.au f 03 9654 2244 w www.bmtqs.com.au Australia Wide Service

ABN 44 115 282 392

Estimate of Depreciation Claimable Typical 1 Bedroom Apartment, Sora 13-15 Hamilton Street, BENTLEIGH VIC 3204 Comparison Yr 1-10 (Max & Min)

Maximum Year

Plant & Equipment

Division 43

Total

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

5,919 4,379 3,460 2,555 2,093 2,002 1,750 1,144 765 528 2,580

6,279 6,279 6,279 6,279 6,279 6,279 6,279 6,279 6,279 6,279 188,383

12,198 10,658 9,739 8,834 8,372 8,281 8,029 7,423 7,044 6,807 190,963

Total

$27,175

$251,173

$278,348

$13,000 $11,700

Minimum

$10,400 $9,100 $7,800 $6,500 $5,200 $3,900 $2,600 $1,300 $0

5 6 7 8 Years Maximum Minimum

Cumulative Yr 1-10 (Min & Max)

Year

Plant & Equipment

Division 43

Total

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

4,843 3,583 2,831 2,091 1,713 1,638 1,432 936 626 432 2,111

5,137 5,137 5,137 5,137 5,137 5,137 5,137 5,137 5,137 5,137 154,131

9,980 8,720 7,968 7,228 6,850 6,775 6,569 6,073 5,763 5,569 156,242

Total

$22,236

$205,501

$227,737

$88,000 $79,200 $70,400 $61,600 $52,800 $44,000 $35,200 $26,400 $17,600 $8,800 $0

5 6 7 8 Years Maximum Minimum

* assumes settlement on 1 July in any given year.

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

This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 03 9296 6200

Maximising Property Tax Depreciation Deductions 615158

BMT Tax Depreciation

Level 50, 120 Collins Street Melbourne VIC 3000 GPO Box 4260 Melbourne VIC 3001

QUANTITY SURVEYORS

t 03 9654 2233 e info@bmtqs.com.au f 03 9654 2244 w www.bmtqs.com.au Australia Wide Service

ABN 44 115 282 392

Estimate of Depreciation Claimable Typical 2 Bedroom Apartment, Sora 13-15 Hamilton Street, BENTLEIGH VIC 3204 Comparison Yr 1-10 (Max & Min)

Maximum Year

Plant & Equipment

Division 43

Total

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

6,664 5,495 4,241 3,122 2,508 1,870 1,791 1,432 1,243 839 3,757

7,534 7,534 7,534 7,534 7,534 7,534 7,534 7,534 7,534 7,534 226,046

14,198 13,029 11,775 10,656 10,042 9,404 9,325 8,966 8,777 8,373 229,803

Total

$32,962

$301,386

$334,348

$15,000 $13,500

Minimum

$12,000 $10,500 $9,000 $7,500 $6,000 $4,500 $3,000 $1,500 $0

5 6 7 8 Years Maximum Minimum

Cumulative Yr 1-10 (Min & Max)

Year

Plant & Equipment

Division 43

Total

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

5,452 4,496 3,470 2,554 2,052 1,530 1,465 1,172 1,017 687 3,074

6,164 6,164 6,164 6,164 6,164 6,164 6,164 6,164 6,164 6,164 184,946

11,616 10,660 9,634 8,718 8,216 7,694 7,629 7,336 7,181 6,851 188,020

Total

$26,969

$246,586

$273,555

$105,000 $94,500 $84,000 $73,500 $63,000 $52,500 $42,000 $31,500 $21,000 $10,500 $0

5 6 7 8 Years Maximum Minimum

* assumes settlement on 1 July in any given year.

This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 03 9296 6200

Maximising Property Tax Depreciation Deductions 615158

BMT Tax Depreciation

Level 50, 120 Collins Street Melbourne VIC 3000 GPO Box 4260 Melbourne VIC 3001

QUANTITY SURVEYORS

t 03 9654 2233 e info@bmtqs.com.au f 03 9654 2244 w www.bmtqs.com.au Australia Wide Service

ABN 44 115 282 392

Estimate of Depreciation Claimable Typical 2 Bedroom + Study Apartment, Sora 13-15 Hamilton Street, BENTLEIGH VIC 3204 Comparison Yr 1-10 (Max & Min)

Maximum Year

Plant & Equipment

Division 43

Total

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

7,447 6,152 4,720 3,477 2,781 2,086 1,960 1,415 1,203 1,124 4,723

9,694 9,694 9,694 9,694 9,694 9,694 9,694 9,694 9,694 9,694 290,831

17,141 15,846 14,414 13,171 12,475 11,780 11,654 11,109 10,897 10,818 295,554

Total

$37,088

$387,771

$424,859

$18,000 $16,200

Minimum

$14,400 $12,600 $10,800 $9,000 $7,200 $5,400 $3,600 $1,800 $0

5 6 7 8 Years Maximum Minimum

Cumulative Yr 1-10 (Min & Max)

Year

Plant & Equipment

Division 43

Total

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

6,093 5,034 3,862 2,845 2,275 1,706 1,604 1,157 985 920 3,865

7,932 7,932 7,932 7,932 7,932 7,932 7,932 7,932 7,932 7,932 237,953

14,025 12,966 11,794 10,777 10,207 9,638 9,536 9,089 8,917 8,852 241,818

Total

$30,346

$317,273

$347,619

$130,000 $117,000 $104,000 $91,000 $78,000 $65,000 $52,000 $39,000 $26,000 $13,000 $0

5 6 7 8 Years Maximum Minimum

* assumes settlement on 1 July in any given year.

This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 03 9296 6200

Maximising Property Tax Depreciation Deductions 615158

BMT Tax Depreciation

Level 50, 120 Collins Street Melbourne VIC 3000 GPO Box 4260 Melbourne VIC 3001

QUANTITY SURVEYORS

t 03 9654 2233 e info@bmtqs.com.au f 03 9654 2244 w www.bmtqs.com.au Australia Wide Service

ABN 44 115 282 392

Estimate of Depreciation Claimable Typical 3 Bedroom Apartment, Sora 13-15 Hamilton Street, BENTLEIGH VIC 3204 Comparison Yr 1-10 (Max & Min)

Maximum Year

Plant & Equipment

Division 43

Total

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

8,037 6,663 5,091 3,751 2,992 2,250 2,092 1,521 1,316 957 5,592

11,565 11,565 11,565 11,565 11,565 11,565 11,565 11,565 11,565 11,565 346,966

19,602 18,228 16,656 15,316 14,557 13,815 13,657 13,086 12,881 12,522 352,558

Total

$40,262

$462,616

$502,878

$20,000 $18,000

Minimum

$16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0

5 6 7 8 Years Maximum Minimum

Cumulative Yr 1-10 (Min & Max)

Year

Plant & Equipment

Division 43

Total

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

6,575 5,451 4,165 3,069 2,448 1,841 1,712 1,245 1,076 783 4,576

9,463 9,463 9,463 9,463 9,463 9,463 9,463 9,463 9,463 9,463 283,882

16,038 14,914 13,628 12,532 11,911 11,304 11,175 10,708 10,539 10,246 288,458

Total

$32,941

$378,512

$411,453

$151,000 $135,900 $120,800 $105,700 $90,600 $75,500 $60,400 $45,300 $30,200 $15,100 $0

5 6 7 8 Years Maximum Minimum

* assumes settlement on 1 July in any given year.

This Estimate Cannot Be Used For Taxation Purposes To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 03 9296 6200

Maximising Property Tax Depreciation Deductions 615158

VALUATIONS ORDERED