InvestmentReport_AshfieldSt_Ipswich_RealEstateAgents

DUAL OCCUPANCY INVESTMENT REPORTSUPER CASH MACHINE 6.5% RETURN DUAL OCCUPAN-

Dual Occupancy Investment Report 6.5% Return - Super Cash MachineContentsInvestment Summary 3Key Facts 3Comparable Dual Occupancy House & Land Sales 7Land Survey Plan 8Site Plan 9Dual Occupancy Architect Plans 10Elevation 10Artists Impression 11Builders Specification Sheet 12Agent’s Rental Appraisal House 13Agent’s Rental Appraisal Unit 14Rental Comparative Market Analysis 15Property Investment Analysis 22Property Analyst Summary 28 All information presented in this document has been presented in good faith and correlated from independent third parties.It is recommended that interested parties also undertake their own due diligence. We are not financial planners or financial advisers; please seek professional advice on financial subjects. PAGE 2

Investment Summary Dual Occupancy Investment Report 6.5% Return - Super Cash Machine PURCHASE PRICE $479,800EXPECTED RETURN Unit $250pw House $350pwRETURN ON INVESTMENT $31,600 P.A. 6.5% Note: For details of the above refer to Property Investment Analysis P.22 Key Facts Full Turn Key Package ● House - 3 bed, 2 bath, 1car PLUS Unit - 1 bed, 1 bath, 1car ● Dual Occupancy - 2 Rental Incomes ● Land Size: 870m2 - Flood Free Block ● Modern Functional Layout ● Great return for the investor - 6.5% Gross Return, 5% Net Return Projected ● No body corporate levies ● Construction Contract Price includes: Large Tree Removal, Retaining Wall (if req), Fencing separating each back yard, Firewall between House and Unit, Separate Hot Water Systems, Separate Airconditioners, Separate Internal Entries from Garage Population Growth ● HIGH GROWTH location ● Ipswich is SEQ’s fastest growing city increasing by 80+ people per week ● The city is set to boom with a population explosion of 5% rate of growth from 2011 to 2031. It’s anticipated the city’s population could top half a million in 20 years. This statistic is supported by low unemployment, well below State and National figures. All information presented in this document has been presented in good faith and correlated from independent third parties.It is recommended that interested parties also undertake their own due diligence. We are not financial planners or financial advisers; please seek professional advice on financial subjects. PAGE 3

Dual Occupancy Investment Report 6.5% Return - Super Cash MachineKey Facts continued...Desirable Location ● Less than 1km to Warrego Hwy to Brisbane ● 5.1km / 10 minutes to Ipswich CBD ● Residential /Established Suburb ● Near shops, transport and local schoolsMajor Developments in Region ● $200 million Ipswich River Link project retail development ● $86 million Warrego Midway to Cunningham Highway upgrade ● $5.229 billion Motorway Upgrade, $200 million Western Ipswich By-pass ● $320 million Springfield Rail Line ● $122 million Ipswich Hospital ● $9 million Emergency Department Upgrades ● $950 million State School Infrastructure ● $18 million Bremer TAFE upgrade ● $600 million Orion Shopping Centre becoming one of the largest in the Southern HemisphereKey Industries in Region ● Aerospace • Amberley is Australia’s only RAAF Super Base with 5000 personnel employed on base. • Amberley is a ground breaking initiative of the QLD Government and is a commercially oriented high tech hub for high value add and knowledge based aerospace and defence support enterprises. • The Department of Defence has committed $1.1 billion to Amberley for development of the base. • Home to Australia’s 24 F/A-18F Super Hornets & 6 C-17A Globemaster III, requiring $114.1 million for upgrading supporting facilities. All information presented in this document has been presented in good faith and correlated from independent third parties. It is recommended that interested parties also undertake their own due diligence. We are not financial planners or financial advisers; please seek professional advice on financial subjects. PAGE 4

Dual Occupancy Investment Report 6.5% Return - Super Cash MachineKey Facts continued...Key Industries in Region ● Food Processing • Ipswich has it’s own purpose built industrical development offering cost effective solutions to cold storage, thermal energy, warehousing, transport and other energy supply at Synergy Technology Park ● Manufacturing • The manufacturing industry in Ipswich provides their economy in excess of $2.5 billion dollars annually • Australia’s largest aluminium extrusion plant is located in Ipswich ● Tourism • Tourism is a growth industry in Ipswich providing Heritage tours, helicopter tours of local wineries, driving around the race track, hot air ballooning, the Scenic Rim, native animals, Steam Trains, Cultural Festivals, museums ● Transport • Ipswich is well supported by transport infrastructure with major highway access covering most directions • The Transport and Storage industry is a significant contributor to the Ipswich Economy ● Education • 2 Universities, TAFE, Public and Private Schools Education City at Springfield Lakes All information presented in this document has been presented in good faith and correlated from independent third parties.It is recommended that interested parties also undertake their own due diligence. We are not financial planners or financial advisers; please seek professional advice on financial subjects. PAGE 5

Dual Occupancy Investment Report 6.5% Return - Super Cash MachineKey Facts continued...Within reach of Ashfield St: ● Education Hub • Childcare Centres, Brassal SS, Ipswich SHS, St Joseph’s Primary School, Ipswich North SS, St Edmund’s College, Blair SS, Ipswich Boys Grammar School, Ipswich Girl’s Grammar, Ipswich Central SS, Bremer Institute of TAFE and The University of Queensland. ● Great Retail • Brassal Shopping Centre, Riverlink Shopping Centre, Booval Fair, Central Ipswich, Bunnings as well as speciality CBD shops. ● Well positioned • 40 minutes to Brisbane, under 1 hr to Gold Coast. Excellent road and rail connections. ● Culturally Active • RSL Club, Leagus Club, Sporting and Bowls Clubs, Railway Workshop, Ipswich Civic Centre, Ipswich Art Gallery ● Job Opportunities • Modern infrastructure, 15 + Industrial and Commercial Parks, Local Hospital, TAFE and University, diverse extensive opportunities for growth and prosperity enhanced by effective council planning ● Nature Lovers • parklands, bushland, reserves, multiple areas to access Bremer River All information presented in this document has been presented in good faith and correlated from independent third parties. It is recommended that interested parties also undertake their own due diligence. We are not financial planners or financial advisers; please seek professional advice on financial subjects. PAGE 6

Dual Occupancy Investment Report 6.5% Return - Super Cash MachineKey Facts continued...Attractive Price Point ● Meets market demand for affordable housingRental Vacancy Rate ● Ipswich Rental Vacancy Rate 1.6% - source REIQLocated in the most dynamic corner of Australia’s growth state, Ipswich has truly come of age.Today, Ipswich is a vibrant business hub boasting Australia’s largest aluminium extrusion plant,and an aerospace precinct, housing global players including Boeing and Qantas DefenceServices, at Amberley. It is Australia’s largest defence base.Just 35 minutes from Brisbane, Ipswich has modern infrastructure, sub-tropical climate,affordability, impressive economic performance and promising great new job opportunities.Ipswich is enjoying unprecedented growth.Comparable Dual Occupancy House & Land SalesLot 13 Reif Street Flinders View 429m2Land size: 213m2Dual Occ House: 6.6km / 14minsDistance to Ipswich CBD $449,400Sold PriceSold before land registered.Lot 18 Reif Street Flinders View 426m2Land size: 212m2Dual Occ House: 6.6km / 14minsDistance to Ipswich CBD $451,900Sold PriceSold before land registered.Lot 31 The Oaks Bundamba 808m2Land size: 220m2Dual Occ. House 6km / 11minsDistance to Ipswich CBD $495,000Sold PriceSold before titles registered. All information presented in this document has been presented in good faith and correlated from independent third parties.It is recommended that interested parties also undertake their own due diligence. We are not financial planners or financial advisers; please seek professional advice on financial subjects. PAGE 7

Ldn' Act 199{ ; L$d Act 199{ SURI/EY PI.ANFdt. /rligl 2 TAAKg .od. --ffias' fl NEFEEIICE S.err .^i8F/Scruw h l(rD 256c45' 5.6652 SarxinrM 3tto38' 756 93006' t2.il53 I'ld in Krtb ,6303e' t2.25 e4-I Plqwin Ksb i520e5' 7.t55 OP5 Noil in *|ail. 3.162*6 O*f,rh*l 51.8',4' - ts 19579t zeflga' lo7 ?.6e 4d 0otP*f,,wd Sffcfl in K.rb tr 21t887 47.@ 2Vl5'9 a ,957?t 6-994 oPtl @.$sre9 O *nt h I'11 E t95?9t. t9.69 9?5e20' t.o5to RP 2IIE8? 3$a5'20' t.oo7 3ilAO'.&' *otP ts tgsvtt 1.t48 rG, cootiltArEs @A-4t2 RP 2t4ee7 @u 315t2 1475 671.9401 6 9,-9 3t+9e oPu 3t5t3l zr75 A7t-Ar2l 6 919 3J1.22tPETA'f,'II YAEXS G.'LLY ROAD il'ilTEfr,NG 800 n' 7779 n' 'l!\"ror#'* 900,[ 800 n' 805m' 5n0I 7- -? 3B { C p' !ell 850m\" .flNoit glocad 829*\" I tL(n 2 Soon' tyb:Ol,tflx#- . in Fcnd Roil 1 8o6n' $$ azo *'10o PEF 9s'fl r6 \ii m 6'Y 12 gB7 m, 5 354.14 45' sB otP tE9-sso Ig utcR^ll fr'tl7 t tt) H-t n23,, IE Peq_ploced of oil ne, corn TOTAL ARE4 OF NEW ROAD EEi unlass olher*ise noled. 74O9 n' 0r0&30€s60?b8090r00r0 I r r r I 120 lldE illiltililt IIII rIl. Pat6r Cornrlius HENRY ia'cby o.rdty ri.t rh. PLAN OF LOTS 1 . 12 AND 9OO elsd @il'rld h na c& raa &rarad D, m ,arao^alt IConcelling Lot on RP 2148875d lia Ca b Eral., tbt ,r. Ild *rr, rar 9),rltra h a.rrd@ lh rir Sunry sd &r05ahhlrudlD Art t00l .ra Srnrff. Acr l00t tid rE dil.d sH PARIS}I: CHUWAR coUNTY: STANLEY sP218476 $ ulridh: Gm 94 - Sce Toble Qil PAGE 8

Site Plan PAGE 9

Dual Occupancy Architect Plans & Elevation PAGE 10

Artist’s Impression PAGE 11

Builder’s Specification Sheet Inclusions for Lot 10 Ashfield St, North Ipswich House with Annexure Unit Full ‘Turn-Key’ Builder Inclusions PO BOX 320, BROWNS PLAINS QLD 4118 QBCC License No: 109 5539 General Inclusions (where required)  Floor coverings from Builder’s range including:  All council plans and specifications  Ceramic tiles to all entry, wet areas and laundry to  Engineers Soil Report & Slab Design both the house and annex unit, and to the meals,  QBCC insurance and other relevant fees living and kitchen areas  Six (6) months maintenance period  Carpet to all bedrooms and robes Site Works  Generous light, power points & switches (builder’s range)  Earth works to cut and fill  Roller blinds from builder’s range to all windows and  Standard slab engineer designed to M-Class  Termite protection as per Australian standards sliding doors (except WC and windows in shower recess).  Sewerage, drainage and stormwater connections to  Ceiling fans to all bedrooms, living rooms (2) and main existing services house alfresco area only  Water supply and power connections Kitchen Inclusions External Finishes  Laminated benches with post-formed edges (rounded)  Face brick and cladding combinations (as shown on plan)  Powder-coated aluminium windows and sliding doors and laminated face  Over head cupboards as per plan with keyed locks  600mm Stainless Steel Wall Oven, Ceran Hotplates,  Security screens to all doors and windows  Concrete roof tiles or Colorbond roof sheeting as per plan Dishwasher & Slimline Range-hood  One & one-half bowl Stainless Steel sink to both Kitchens (from builder’s range)  Flickmixer tap to sink  Minimum three (3) garden taps  Hot Water System as nominated by builder Bathroom Inclusions  Colorbond fascia and gutters  White acrylic bath  Panel lift doors with remote controls - “Contemporary”  Full height tiled shower recess  2 Pak vanity with white Polymarble top to bathroom and design  1.8m high timber paling fences to rear and side of lot ensuite  Powder-coated aluminium shower screens with clear (where required) with side returns & gates  Mounded, mulched and planted garden to front with toughened glass  Hand-held shower rose and rail to ensuite Concrete/Brick edging, turf to lawn area  Quality taps from builders range  Colorbond metal letterbox to match house  Flick-mixer tap to sink  Clothesline to side of house/yard  250mm exhaust ceiling fan  Exposed aggregate driveway, paths and to alfresco areas Laundry Inclusions as per plan  Narrow single bowl combination laundry tub and cabinet Internal Finishes with powdercoated finish  Corinthian external solid core panel Entry Doors painted  Standard polished chrome plated laundry tub tapware, (gloss) with deadlock wall mounted  Corinthian internal doors - painted (Gloss)  B.C. lever door furniture Special Finishes, Upgrades & Inclusions:  Insulation to roof and walls as per energy efficiency  1 x split system air conditioning unit to each living room requirements (1 x main house, 1 x annex unit – 2 x total)  Builders Sarking to external walls (as required)  Metal shelf and rail to all robes  Sub water and power meters  Four (4) shelves and door to all linen  Separate hot water system to Annexure Unit  Mirrored robe sliding doors  Fire rated party wall between house and annexure unit  Safety switch & wired direct smoke detectors as per  Manufactured stone kitchen bench tops (builder’s range)  Taps & wet-area accessories from Builder’s Gold Range Australian standard  TV points to: Owner’s Signature:  House - Bed 1 & Living  Annex Unit - Living and Front Bedroom only PLEASE NOTE: The builder reserves the right to substitute similar products to those listed in this specification at any time without notice due to changes in product line &/or availability. PAGE 12

Agent’s Rental Appraisal 20th March 2015 RE- 13 ASHFIELD STREET NORTH IPSWICH QLD 4305 To Whom It May Concern, It is my professional opinion that the property mentioned below could be placed on todays’ rental market and gain the rental return stated and supported by the accompanying Comparative Rental Market Analysis with the provision of the “Turn Key” Builder inclusions and Full proposed Site plan for 3 Bedroom, 2 Bathroom & 1 Car and the image of the front facade. 13 ASHFELD STREET NORTH IPSWICH QLD 4305 Minimum $350.00 Per Week- Maximum $360.00 Per Week Should you have any further queries in regards to the information provided please feel free to contact me. Kind regards Je'anne Luchessi Business Development Manager 0400 601 283 | 617 3436 0800 [email protected] Springfield Lakes Shop 4 | Spring Lake Metro | 1 Springfield Lakes Boulevard | QLD | 4300 ---------------- Coronis. Streets Ahead. coronis.com.au | 3436 0800 PAGE 13

Agent’s Rental Appraisal 20th March 2015 RE- 13a ASHFIELD STREET NORTH IPSWICH QLD 4305 To Whom It May Concern, It is my professional opinion that the property mentioned below could be placed on todays’ rental market and gain the rental return stated and supported by the accompanying Comparative Rental Market Analysis with the provision of the “Turn Key” Builder inclusions and Full proposed Site plan for 1 Bedroom, 1 Bathroom & 1 Car and the image of the front facade. 13a ASHFELD STREET NORTH IPSWICH QLD 4305 Minimum $250.00 Per Week- Maximum $260.00 Per Week Should you have any further queries in regards to the information provided please feel free to contact me. Kind regards Je'anne Luchessi Business Development Manager 0400 601 283 | 617 3436 0800 [email protected] Springfield Lakes Shop 4 | Spring Lake Metro | 1 Springfield Lakes Boulevard | QLD | 4300 ---------------- Coronis. Streets Ahead. coronis.com.au | 3436 0800 PAGE 14

RENTAL COMPARATIVE MARKET ANALYSIS13 Ashfield Street North Ipswich QLD 4305Jeanne LucchesiEmail: [email protected]: 0400601283Office: 0734360800 PAGE 15

YOUR PROFESSIONAL AGENTJeanne LucchesiEmail: [email protected]: 0400601283Office: 0734360800Coronis Realty Springfield LakesShop 4, 1 Springfield Lakes Boulevard, SPRINGFIELD LAKES QLD 4300+61(07)34360800http://www.coronis.com.au© 2015 RP Data Pty Limited, All rights reserved. No reproduction, distribution, or transmission of the copyrighted Page 2materials is permitted. The information is deemed reliable but not guaranteed. PAGE 16

YOUR PROPERTY 42 - 870m2Lot 10 Ashfield St North Ipswich QLD 4305© 2015 RP Data Pty Limited, All rights reserved. No reproduction, distribution, or transmission of the copyrighted Page 3materials is permitted. The information is deemed reliable but not guaranteed. PAGE 17

COMPARATIVE RENTAL PROPERTY7 Edith Drive North Ipswich QLD 4305First Rental Price: $310/W 32 1 635m2Current Rental Price: $310/WFirst Listed Date: 22 Jan 2015 Category: HouseCurrent Listed Date: 1 Feb 2015 Distance: 0.82km6 Whittaker Street North Ipswich QLD 4305First Rental Price: $320/W 32 1 1,037m2Current Rental Price: $300/WFirst Listed Date: 16 Oct 2014 Category: HouseCurrent Listed Date: 13 Nov 2014 Distance: 0.99km© 2015 RP Data Pty Limited, All rights reserved. No reproduction, distribution, or transmission of the copyrighted Page 4materials is permitted. The information is deemed reliable but not guaranteed. PAGE 18

STATISTICS SUMMARY Indicated Gross Rental Yield Median Asking Rental Price 5.6% $280Suburb Rental Statistics Category House Statistics are based on a rolling 12 month periodRents By Property Type - Houses and Units Lowest Rent / Highest Rent / Median Rent / Average Rent / Quantity Week Week Week WeekHOUSE 3 bedrooms 2 $300 $310 $305 $305TOTAL HOUSE 2 $305 $305GRAND TOTAL 2 $305 $305Average Number Of Days Advertised Quantity Average Number Of Days Advertised 43HOUSE $300 - $399 2© 2015 RP Data Pty Limited, All rights reserved. No reproduction, distribution, or transmission of the copyrighted Page 5materials is permitted. The information is deemed reliable but not guaranteed. PAGE 19

SUGGESTED RENTAL PRICE 42 - 870m2Lot 10 Ashfield St North Ipswich QLD 4305 ESTIMATED RENTAL PRICE Page 6 Estimated Weekly Rental Price: $350-365 PAGE 20 Prepared On: 20 Mar 2015 AGENT DETAILS Jeanne Lucchesi Email: [email protected] Mobile: 0400601283 Office: 0734360800© 2015 RP Data Pty Limited, All rights reserved. No reproduction, distribution, or transmission of the copyrightedmaterials is permitted. The information is deemed reliable but not guaranteed.

DISCLAIMER© 2015 Copyright RP Data Pty Limited, Local, State and Commonwealth Governments. All rights reserved. No reproduction,distribution, or transmission of the copyrighted materials at this site is permitted.In compiling this publication, RP Data has relied upon information supplied by a number of external sources. The publication issupplied on the basis that while the RP Data believes all the information in it is deemed reliable at the time of publication, it does notwarrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for anyloss or damage sustained by subscribers, or by any other person or body corporate arising from or in connection with the supply oruse of the whole or any part of the information in this publication through any cause whatsoever and limits any liability it may haveto the amount paid to RP Data for the supply of such information.Based on or contains data provided by the State of Queensland (Department of Environment and Resource Management) 2015. Inconsideration of the State permitting use of this data you acknowledge and agree that the State gives no warranty in relation to thedata (including accuracy, reliability, completeness, currency or suitability) and accepts no liability (including without limitation,liability in negligence) for any loss, damage or costs (including consequential damage) relating to any use of the data. Data must notbe used for direct marketing or be used in breach of the privacy laws.© 2015 RP Data Pty Limited, All rights reserved. No reproduction, distribution, or transmission of the copyrighted Page 7materials is permitted. The information is deemed reliable but not guaranteed. PAGE 21

Property Investment Analysis United Professionals - Gold Coast PROPERTY INVESTMENT ANALYSIS (DESCRIPTIVE) 14-May-2015 Prepared for: Smart Investor Example Consultant: Property: Lot 10 Ashfield Street, North Ipswich 4305 Description: Dual Occupancy House & Land 870m2 Package SUMMARY Assumptions $479,800 Projected results over 10 yrs Property value $24,000 Property value $614,185 Initial investment Equity $145,471 Gross rental yield 6.50% After-tax return /yr Net rental yield 5.15% Net present value 40.28% Cap. growth rate 2.50% IF SOLD $152,159 Inflation rate 2.50% Selling costs & CGT Interest rate 5.00% Equity $63,946 Taxable income $65,000 After-tax return /yr $81,525 36.84%Investment AnalysisEnd of year COMPUTER PROJECTIONSProperty valuePurchase costs Projections over 10 yearsInvestmentsLoan amount 2015 1yr 2yr 3yr 5yr 10yrEquity $479,800 491,795 614,185Capital growth rate 504,090 516,692 542,850Inflation rate (CPI) $7,250Gross rent /week $24,000 468,713 468,713 468,713 468,713 468,713Cash deductions $468,713 23,082 35,376 47,979 74,136 145,471Interest (I/O) $11,087 2.50% 2.50% 2.50% 2.50%Rental expenses 2.50% 2.50% 2.50% 2.50% 2.50%Pre-tax cash flow 2.50% 31,200 31,980 32,779 34,439 2.50%Non-cash deductions 2.50% 38,965Deprec.of buildingDeprec.of fittings $600Loan costsTotal deductions 5.00% 23,436 23,436 23,436 23,436 23,436Tax credit (single) 20.75% 6,474 6,636 6,802 7,146 8,085After-tax cash flow $-24,000 1,290 1,908 2,542 3,857 7,444Rate of return (IRR)Pre-tax equivalent 2.50% 7,120 7,120 7,120 7,120 7,120 $41,594 7,822 851 $5,663 1,133 8,465 6,080 3,905 45,984 39,492 $65,000 5,322 1,133 1,133 1,133 206 $-24,000 6,612 40.28% 46,789 44,570 42,739 7,650 61.50% (127) 5,331 4,220 2,912 (147) 7,239 6,762 6,769 Your cost /(income) per week (139) (130) (130)Disclaimer: Note that the computer projections listed above simply illustrate the outcome calculated from the input valuesand the assumptions contained in the model. Hence the figures can be varied as required and are in no way intended to be aguarantee of future performance. Although the information is provided in good faith, it is also given on the basis that noperson using the information, in whole or in part, shall have any claim against United Professionals - Gold Coast, itsservants, employees or consultants.. PAGE 22

United Professionals - Gold Coast Page 2 Detailed Notes on Spreadsheet ItemsPROPERTY VALUEThe property (or market) value refers to how much the property is worth (i.e. how much you could sell it for). Its bookvalue, on the other hand, refers to how much you have paid for it plus the cost of any immediate renovations.Property price: 479,800Renovation costs: 0Total book value:Property market value: 479,800 $479,800PURCHASE COSTSThese include your solicitor's conveyancing fees and, where applicable, State Government stamp duty charges. In Australia,stamp duty varies from State to State and is a function of purchase price whereas, in New Zealand, it has been abolished onall 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, thoughnormally they will only be taken into account in Capital Gains Tax calculations in the year of sale.Conveyancing costs: 2,000Stamp duty (on land only): 5,250Total Purchase costs: $7,250INVESTMENT & LOANYour initial investment is usually just the total of all monies outlayed at the time of purchase. These may includecontributions toward any, or all, of the costs listed below. The remainder will largely determine the size of the loan. If youhave 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 aremodelling an investment from some point in time after purchase (e.g. to assess the return on major renovations), yourinvestment might also include the equity you already have built up in the property.Property costs: Investments Loan Total CostRenovation costs: 24,000 455,800 479,800Purchase costs: 0 0Furniture costs: 0 0 7,250Loan costs: 0 7,250 0Totals: 0 5,663 $24,000 0 $492,713 5,663 $468,713CAPITAL GROWTH & INFLATION RATESRate of capital growth is your anticipated annual compound rate of increase of the property value. It will undoubtedly varysubstantially over the short term, but over the longer term (10 years or more), it has generally been about 2 to 3% above therate of inflation.Average rate of inflation (%): 2.50Average rate of capital growth (%): 2.50 PAGE 23

United Professionals - Gold Coast Page 3EQUITYThe equity is the difference between the property value and the loan. The equity increases in line with the increasingproperty value in the case of an interest-only loan. For a principal & interest loan, it also increases with the decrease in thedebt.Projected values over 5 yrs 10 yrs 15 yrs 20 yrsProperty value 542,850 614,185 694,893 786,208Loan 468,713 468,713 468,713 468,713EQUITY $74,136 $145,471 $226,180 $317,495Approximate costs if sold...... 19,651 43,490 74,488 106,662Capital Gains Tax 2,714 3,071 3,474 3,931Solicitor's fees 15,423 17,385 19,605 22,116Sales commission $36,347 $81,525 $128,613EQUITY (after sale) $184,786INTEREST COSTS & TYPE OF LOANThe type of loan can be either interest-only and/or principal & interest. Repayments for interest-only loans, as the titlesuggests, 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: I/O Yrs 1-40Interest rate (yr 1) (%) 5.00Loan:Loan costs (written off over 5 yrs): $468,713Monthly payment: $5,663Annual payment: $1,953 $23,436RENTThe potential annual rent is simply the rent per week times 52. The actual annual rent must account for any period that theproperty is vacant. Annual rents are assumed to increase in line with inflation.Rent per week: 600Potential annual rent: 31,200Vacancy rate (%):Actual annual rent: 0.00 $31,200 PAGE 24

United Professionals - Gold Coast Page 4ANNUAL RENTAL EXPENSESThese 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 propertymanagement agent is used. For holiday letting, with higher vacancies, the percentage can be more than 50%. Normal Expenses: 2,574 Agent's commission (8.25%): 600 Letting fees: Rates: 1,500 Insurance: 1,000 Maintenance: 800 Special expenses: 0 Total expenses: $6,474 Normal expenses as % of annual rent (%): 20.75 Net yield or Capitalisation rate (%): 5.15PRE-TAX CASH FLOWThese are all of the monies that flow out of your pocket before tax is taken into account. Normally, it would represent thegross annual rent less interest and rental expenses. This will vary if interest or expenses are capitalised or rents used directlyto reduce the loan.Year 24,000 1yr 2yr 3yr 5yr 10yrRent $-24,000 31,200 31,980 32,779 34,439 38,965Cash investedPrincipal payments 0 0 0 0 0Interest 0 0 0 0 0Expenses 23,436 23,436 23,436 23,436 23,436Pre-tax cash flow 6,474 6,636 6,802 7,146 8,085 $1,290 $1,908 $2,542 $3,857 $7,444DEPRECIATION ON THE BUILDINGThis represents the capital allowance on the construction costs. Property value: $479,800 Construction costs: $284,800 Depreciation allowance rate (%): Depreciation allowance: 2.50 $7,120DEPRECIATION OF FITTINGS (annual claim) $41,594 Total value of fittings: $7,822 Total depreciation in first year:LOAN COSTSIn Australia, the loan costs are written off over the term of the loan (or five years, whichever is the lesser). Establishment fees (0.50% of loan): 2,344 Mortgage insurance (0.32% of loan): 1,500 Mortgagee's solicitor's fees: 1,000 Valuation fees: Registration of mortgage: 300 Registration of title: 230 Search fees: 115 Total loan costs: 175 $5,663 PAGE 25

United Professionals - Gold Coast Page 5TOTAL TAX DEDUCTIONS (Cash & Non-Cash Deductions)These include both \"cash\" (e.g. interest, rental expenses) and \"non-cash\" (e.g. depreciation) deductions.Year 1yr 2yr 3yr 5yr 10yrInterest 23,436 23,436 23,436 23,436 23,436Expenses 6,474 6,636 6,802 7,146 8,085Deprec.-building 7,120 7,120 7,120 7,120 7,120Deprec.-fittings 7,822 8,465 6,080 3,905Loan costs 1,133 1,133 1,133 1,133 851Total deductions $45,984 $46,789 $44,570 $42,739 0 $39,492TAX CREDITS & AFTER-TAX CASH FLOWThe after-tax cash flows are all of the monies that flow in or out of your pocket AFTER tax is taken into account. Theyrepresent the PRE-tax cash flow LESS any tax credits (or tax refunds). In this analysis, it is assumed that the investor hasobtained a tax variation from the Taxation Office and thus the tax refunds are credited for the same year in which they arebased.Year 2015 1yr 2yr 3yr 5yr 10yrPre-tax cash flow -24,000 1,290 1,908 2,542 3,857 7,444Tax credits 5,322 5,331 4,220 2,912After-tax cash -24,000 6,612 7,239 6,762 6,769 206Cost /(income) per week (127) (139) (130) (130) 7,650 (147)INTERNAL RATE OF RETURNThe internal rate of return (IRR) is the method of calculating the return on a series of cash flows where the time factor istaken into account. To understand it, think of the money you are outlaying on your investment property as being depositedin a bank account, with interest added each year. In this case the \"deposits\" are represented by the after-tax cash flowsYear 2015 1yr 2yr 3yr 5yr 10yrAfter-tax cash flow $-24,000 $6,612 $7,239 $6,762 $6,769 $7,650Equity $145,471The total amount in your \"account\" (including interest) at the end of the period is the equity ($145,471) in the investmentproperty. The IRR (40.28%) 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 toget 61.50% before tax.If the property were to be sold at the end of the period, the after-sale equity would be reduced to $81,525 after takingaccount of selling costs and capital gains tax and the IRR after the sale would be 36.84%. PAGE 26

United Professionals - Gold Coast Page 6TAX BENEFITSThese are shown below for the given taxable incomes and are based on the specified tax scale.Number of properties: 1 Investor 65,000Current taxable income: 31,200Rental income: 96,200Total income: 45,984Rental deductions: 50,216New taxable income: 13,947Current tax (on 65,000): 8,625New tax (on 50,216): 5,322Tax saving: $5,322Total tax credits:INVESTMENT CAPACITYBuying 1 such properties (registered in single name), and taking into account current net incomes and expenses as shown,the difference between total income and total committed expenses in the first year would be $-8,850. Total initial outlaywould be $24,000. Number of Properties: 1 Registered: single nameIncome 65,000 65,000 Current net income 31,200 Current assessable income (Investor): $96,200 Total net income: New rental income: 8,625 Total income: 6,474 23,436Expenses 35,565 30,950 New tax Investor: $105,050 Rental expenses: Investment loan expenses: $-8,850 Home loan payments: $24,000 Living expenses: Total expenses: Net surplus (first year of investment): Total initial outlay required: PAGE 27

Dual Occupancy Investment Report 6.5% Return - Super Cash MachineProperty Analyst SummaryFacts about Ipswich from property analyst Michael Matusik: ● Ipswich in south east Queensland is set to ride on a boom of its own with $10.6 billion worth of developments earmarked across 40 projects, according to Matusik research.● According to Matusik, in the last 12 months, new major developments in both residential and commercial projects have doubled across the Ipswich area compared to that in the last two years ● Ipswich has the capacity to be the ‘Parramatta’ of south east Queensland. In 2004 the Ipswich region held $6.6 billion worth of new development, much of which was either under construction or committed to happened within the next five years● Research showed that Ipswich is now one of the highest growth regions in SE Queensland. “The Current level of investment and development in Ipswich is providing the key ingredients for an incredible property boom” All information presented in this document has been presented in good faith and correlated from independent third parties.It is recommended that interested parties also undertake their own due diligence. We are not financial planners or financial advisers; please seek professional advice on financial subjects. PAGE 28