IntroToMEP%20F

INTRODUCTION TO MEP Future Estate investment products enable investors to cut out typical developer’s profit and access properties at near cost price.

This eBook does not constitute an investment offer. Prospective investors are recommended to read IM or PDS for further information. No guarantee with regard to future investment performance is made or implied. Whilst every effort has been made to ensure accuracy, no reliance can be placed upon it by recipients.

Intelligent Property Investment

FOREWORD Welcome to Future Estate! We offer exclusive near cost-price residential property investment opportunities. In this eBook, you will learn about our flagship investment product, the Manufactured Equity Product.

Ben Anderson, Managing Director and Founder

Would you like to cut out the typical developer’s profits in your next property investment?

Yes

No

Would you like to access new residential properties at near cost price?

Yes

No

Would you like to learn how to manufacture your own equity investment property using MEP?

Yes

No

Would you like to build a substantial property portfolio in the next ten years?

Yes

No

If you answered ‘Yes’ to any of the above, please read on.

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Future Estate eBook Series: Introduction To Manufactured Equity Product

WHAT IS MEP The Manufactured Equity Product (or MEP) can be described as an investment in a ASIC-registered unit trust which undertakes or participates in a residential property development and a pre-sale purchase of a particular property.

Upon completion of an MEP project, the investors enjoy full ownership of the pre-selected property and receive a return of the initial capital and the realised investment returns.

Future Estate eBook Series: Introduction To Manufactured Equity Product

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MEP AT A GLANCE Key Term

Details

What Is It?

Property managed fund (equity)

Private property ownership on building completion

Typically return circa 15% of the property acquired e.g. $75,000 on a $500,000 property

Target Returns*

Generally annual returns over 20% Investment Terms

During development of the project Generally around 2 years

Investment Amount

Typically $100,000 – $150,000 equity

May also require pre-sale deposit

Investment Price

Generally $400,000 – $600,000

Geographical Focus

Australian capital cities

Centrally well located in the inner city

Key infrastructure and employment hubs of mining regions

Affordable high quality investment property

High yields, low rental vacancy and broadly accessible price point

Market Focus

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Future Estate eBook Series: Introduction To Manufactured Equity Product

MEP PROCESS 1 DA/DUE DILIGENCE 2 OFFER 0–3 months

3 CONSTRUCTION

3–6 months

4 COMPLETION

6–21 months

21–24 months

2 YEARS

1. Development Approvals and Due Diligence Period Suitable projects sourced under stringent selection criteria Necessary development consents are secured

2. Offer Period Equity and debt funding for the project is secured

3. Construction Period Development management of the project Construction and project marketing

4. Project Completion Settlement period—MEP investors settle on the acquired property Bank / financier is repaid capital and interest MEP Investors receive return of capital MEP Investors receive project return subject to terms of Investment Offer

Future Estate manages the entire process for you until project completion.

Future Estate eBook Series: Introduction To Manufactured Equity Product

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INVESTMENT STEPS

STEP 1

The MEP investor pays an initial investment amount e.g. $125,000) for a Unit in the MEP Unit Trust

STEP 2

The MEP investor enters into a pre-sale purchase contract to acquire an apartment for list price (e.g. $500,000)

STEP 3

The MEP investor may be required to provide a 10% deposit for the purchase contract by way of a bank guarantee or cash

STEP 4

Construction period (of approximately 2 years)

STEP 5

The MEP investor settles on the apartment they have acquired

STEP 6

Post settlement, the MEP investor receives back the initial invested capital (e.g. $125,000), investment returns (e.g. of a maximum cash amount of $75,000), plus any capital gains realised during the project life

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Future Estate eBook Series: Introduction To Manufactured Equity Product

KEY BENEFITS 1. Cut Out Developer’s Profit By accessing a $500,000 MEP investment property, you can save around $75,000, or some15% of the list price.

2. Generate Higher Investment Return Typical target returns of about 50% over a two-year project, or over 20% per annum.

Returns are the profit that would otherwise have been earned by the developer.

3. Choose Better Properties MEP is generally offered pre-release which means you get better choice of units in the development.

4. Enjoy Potential Capital Gains In addition to the initial discount offered by an MEP investment, you have access to the potential increase in property value during construction.

5. Build Your Portfolio With Ease Our MEP program allows investors to re-invest profits from one MEP to the next, thus enabling you to build a substantial property portfolio quickly.

MEP allows investors to access high quality residential development projects at near cost price and thus higher investment returns.

Future Estate eBook Series: Introduction To Manufactured Equity Product

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If you would like more information about us and our investment products, simply call, email or visit.

1300 future (388873) info@futureestate.com.au www.futureestate.com.au @futureestate future.estate future estate

Copyright Š Future Estate Group Pty Ltd 2012