Brisbane, Kelvin Grove Newly Apartments

ZEST APARTMENTS

HIGH DEMAND - AFFORDABILITY - LIMITED OPPORTUNITY

Take the opportunity to capitalise on your next investment

Snap Shots Zest Apartments are a stunning fusion of architecture and amenity in Kelvin Grove Urban Village, a thriving

University Precinct right on

the edge of the Brisbane CBD.

Under Construction Anticipated Completion: Q4 2016

Cash Flow Positive by up to $162 per Week PROPERTY TYPES: PRICE RANGE: CAPITAL GROWTH: RENT YIELD: VACANCY RATE: TOTAL R.O.I.:

1 & 2 Bedroom Apartments From $335,000 (1 Bedroom) From $490,000 (2 Bedrooms) 8.8 % 7.2 % 2.1 % 16 %

Disclaimer: All projections and assumptions are a prediction, and whilst Probity Investments has made every effort to ensure they are based on accurate and reliable information, they may be affected by assumptions that do not necessarily eventuate, or by known or unknown risks and uncertainties. The information in this publication does not represent financial advice and should not be regarded as such. It has been prepared without taking into account your financial situation or investment objectives. You should consider the appropriateness of the information in regards to your current financial situation or needs.

Probity Investments Pty Ltd accepts no responsibility for the accuracy or completeness of any such material. The information is subject to change without notice and Probity Investments Pty Ltd is under no obligation to update the information or correct any assumptions which may change over time.

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Queensland

07 3198 6200

Queensland is the second-largest and third-most populated state/ territory in Australia.

According to the latest data provided by the Queensland Government, Queensland’s current population sits at 4,740,927 people.

Population Growth

Economic growth

Queensland’s population is projected to double to around 9.4 million people by 2056 and is projected to replace Victoria as Australia’s second most populous state in 2050. Throughout the year, an annual 2% growth rate has been recorded in Queensland, which was higher than the national rate growth (1.8%). The state’s high rate of population growth will be driven by a continued strengthening of both net overseas migration and net interstate migration levels.

The Queensland State Budget forecasts economic growth of 6 percent in 2015 - 16. Queensland’s economy experienced the second highest average annual growth rate of any Australian state or territory over the last 20 years. The State’s growth is anticipated to strengthen to 3.25% from 2014 onwards with Asia continuing to be the main driver of growth.

Migration Rate Queensland is one of only two states forecast to experience positive net interstate migration for the next four years, averaging 20,000 people per year. This rise is principally underpinned by migrants from both New South Wales and Victoria driven to move due to the state’s relative housing affordability, economic conditions continue to decline and strong employment opportunities.

For the year ended June 2016, the State’s net interstate migration level is forecast to rise from around 10,500 to 19,000.

Queensland’s Gross State Product (GSP) is expected to grow very strongly (at 3%) in 2014-15 which will see Queensland becomes the nation’s leading economy. Over the coming years, Queensland’s unemployment rate is forecast to decline, with the 2013/14 alone year seeing more than 60,000 new jobs were created taking the total number of employed persons to 2.32 million.

Looking ahead in Queensland, it is expected to continue to outstrip national growth. Sustained low interest rates and stronger population growth are expected to strengthen spending in the household sector.

Net overseas migration has an immediate impact on the demand for housing as migrants require some form of housing on arrival, whether as renters (in most instances) or as owner-occupiers.

Source: Resolution Research Strategists © copyright - Probity Investments 2015

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Brisbane

07 3198 6200

Brisbane is Australia’s third largest capital city and the economic engine room for Queensland and is on track to become one of the world’s most prosperous cities.

Population Growth

improvement in residential construction has been overwhelmingly underpinned by the strength Brisbane’s population is projected to increase by of the apartment market, which has recorded a 53%, compared with Melbourne at 47% and Syd- 42% lift since 2011. ney at 33%. Across the 20 year period to 2036, Brisbane’s population is forecast to record the Growth in Brisbane’s housing market is forecast highest increase in population, which is projected to be particularly strong over the coming years. to increase by more than 1.29 million persons to Overall, Brisbane’s median house price is projected to escalate by 17% over the next three reach just over 3.4 million persons. years.

Over the next two decades the resident population of metropolitan Brisbane is expected to grow by an Employment Rate additional 820,000 persons. In order to cater to this growth, around $134 billion of infrastructure invest- Employment growth in Brisbane is strengthenment has been set down for delivery in Brisbane ing, driven by the growth of industries employing and its surrounds over the coming 18 - 20 years. highly-skilled professional services. The latest Australian Bureau of Statistics labour force data shows the Professional, Scientific and Technical Economic growth Services industry generated an additional 10,500 Brisbane is forecast to grow faster than any oth- jobs over the past 12 months, to contribute toer mature world city over the next eight years, wards the 1.074 million jobs in Brisbane. according to an international study compiled by market analysts Jones Lang LaSalle. The study “Brisbane’s inner city off-the-plan ranked Brisbane as number one for expected apartment market has been in a gross domestic product (GDP) growth from 2012 to 2020. According to the study, Brisbane was state of undersupply since GFC.” forecast to have an average annual GDP growth rate of 5 percent over the period 2012 – 2020 with only three other major international cities By 2031, Brisbane City’s job market is forecast to projected to have growth rates averaging above expand to 1.5 million by 2031, a projected increase of more than 443,000 workers, which will 4%. be an impressive growth in estimated economic It is anticipated that over the next two decades output and the key driver of dwelling demand.

Brisbane will be regarded as a top ten lifestyle city and global hub for resource and related service industry businesses. Its economy is already known for its strong business and cultural links with Asia. Over the next ten years Brisbane is predicted to be the fastest growing mature city in the world, ahead of Hong Kong and Singapore.

Dwelling approvals throughout Brisbane (for both detached houses and apartments) are at their highest level in three years. Interestingly, the Source: Resolution Research Strategists

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Kelvin Grove Kelvin Grove is an inner northern suburb of Brisbane, approx. 2 km from the CBD which is one of the state’s major educational precincts, encompassing a range of primary and secondary schools in addition to the Queensland University of Technology’s (QUT) Kelvin Grove Campus.

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Kelvin Grove By 2036, the population of Kelvin Grove is projected to increase to 10,559 persons.

Employment Rate There are more than 308,600 resident workforce in Brisbane CBD; Over 8,150 staff work at the Royal Brisbane, Royal Women’s and Royal Children’s Hospitals and the QIMR Berghofer Medical Research Institute, located in Herston, only 3km from Kelvin Grove, ranked in the top ten employment growth areas in Brisbane.

Also, The suburb sits adjacent to the RNA Showgrounds which is currently undergoing a massive $2.9 billion redevelopment by Lend Lease. This major redevelopment will contain a mix of retail, commercial and residential buildings which, on completion, will have an estimated workforce of around 12,000.

**Full Economic Overview provided upon request

Kelvin Grove Urban Village

Over the past decade Kelvin Grove has undergone significant transformation, the catalyst for which has been the $2 billion Kelvin Grove Urban Village. The redevelopment of the Kelvin Grove Urban Village and subsequent urbanization of Kelvin Grove has seen a strong rise in the volume of medium and high-density dwellings in the area.

opment. The village is based on the principles of Ecological Sustainable Development, which aims to balance environmental, social and economic issues for long-term sustainability. Importantly, the development has created a model for future development at less cost to the environment, translating to lower living costs for owners and residents.

“You don’t want to miss out the last development project in Urban Village”

In 2007, the initial stage of the Kelvin Grove Urban Village was released to market containing a mix of residential, retail and commercial buildings.

The Kelvin Grove Urban Village incorporates education, research, commercial businesses, medical services, retail, restaurants, bars, theatres, sport and recreation with residential living. This unique, extensive blend of mixed-use development and activities has proved to be an outstanding benchmark for urban development throughout Brisbane.

Each Saturday the Urban Village hosts the popular Village Markets. The markets feature over 90 stallholders including farm-fresh fruit and vegetables, gourmet café and food stalls, organic foods, arts and crafts and clothing. In keeping with the community feel at the Urban Village, the markets also have performances from local musicians and street performers.

The Urban Village development is coming to a conclusion with the last few parcels of land currently under application for development or soon The high level of amenity in place throughout to commence construction. After these last few Kelvin Grove Urban Village, which has continued projects, the Kelvin Grove Urban Village will have to increase over time, has been a key driver of completed its transformation. dwelling demand and subsequent high rates of population growth.

Consequently, as land supply dries up, we foreKelvin Grove Urban Village demonstrates best practice in sustainable, mixed-use urban devel-

© copyright - Probity Investments 2015

cast the strong underlying level of demand will be sustained which is likely to further stimulate rates of price and rental growth within the Village.

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Infrastructure The area has witnessed a massive volume of public and private infrastructure investment over recent years in order to support the growing resident and workforce population.

This valuable piece of road infrastructure has provided a pivotal link for residents of Kelvin Grove with some of the state’s major employment nodes, the Gold and Sunshine Coasts.

The $1.5 billion Legacy Way tunnel is currently under construction and will connect the Western Some of the major infrastructure projects which Freeway at Toowong with the Inner City Bypass now service the area include: in Kelvin Grove. The tunnel will have a dramatic effect on relieving traffic congestion on Kelvin The TransApex inner-city ring road compris- Grove’s local streets and further enhance the ing of the Go Between Bridge, the Clem 7 tunnel suburbs connectivity with greater Brisbane. and the AirportLink tunnel. On completion the TransApex project will have delivered five criti- The $444 million Northern Busway opened in cal pieces of infrastructure into Brisbane’s inner 2012 with a major terminus within Kelvin Grove city vastly improving access and travel times in Urban Village. The Busway connects the suband around the city. The project is the biggest urb with Brisbane’s CBD, major shopping cenurban road project ever proposed in Australia. tres and workplaces including the Royal Brisbane Hospital. The Busway runs from King The $210 million Inner City Bypass running George Square in the CBD to Kedron in Bristhrough Kelvin Grove connects the Pacific Mo- bane’s north. A future extension of the Busway torway at Hale Street to Kingsford Smith Drive, to Bracken Ridge is currently under investigathe Clem 7, AirportLink and Lutwyche Road. tion by State Government.

Thanks to investment and the delivery of a high level of major transport infrastructure the area has become one of the most accessible of all of Brisbane’s inner city suburbs.

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The Property - Zest Apartments

Zest Apartments are a stunning fusion of architecture and amenity in Kelvin Grove Urban Village. Being located right in the heart of the QUT Creative Industries Precinct puts you in the centre of a trend-setting community, while strong public transport linkages whisk you quickly to every-where else for work or play.

QUT’s Kelvin Grove campus has more than 11,000 students

450m to University Nearby Golf Course

Close to transport hub

20 minute walk to hospital

Email us for more information:

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Close to CBD

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The Property - Zest Apartments

Overview With 60 one bedroom apartments and 84 two bedroom apartments over 12 levels, and a rooftop terrace with an undercover entertaining area featuring large screen TVs, landscaped gardens, pool and a BBQ area.

Zest also offers a ground level of retail space with a cafe planned for the park side ground floor, along with commercial space on level 2, secure basement and podium level car parking, and professional building management for peace of mind.

Property types: FROM $335,000 FROM $490,000 FROM $545,000 1 Bedroom & 1 Bathroom Extra Study Nook

2 Bedroom & 1 Bathroom Extra Study Nook

2 Bedroom & 2 Bathroom Extra Study Nook

Exclusive Incentives: Probity Investments:

Developer:

- Free conveyancing professional fees - Free BMT Tax Depreciation Estimate - Other Amazing incentives available on enquiry

- Free stamp / transfer duty on the property or Free furniture package

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Floor Plan - 1 Bed, 1 Bath (example)

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Floor Plan - 2 Bed, 1 Bath (example)

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Floor Plan - 2 Bed, 2 Bath (example)

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Floor Plate - Level 3

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Floor Plate Level 4,6,8,10,12,14

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Floor Plate Level 5,7,9,11,13

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Floor Plate - Overview

Level 2 Commercial

Ground Floor Retail

Roof Top

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Schedule of Inclusions, Fixtures & Fittings

Zest’s interior spaces are designed to uplift you with a subtle palette of light colours and highclass finishes. Quality carpets throughout bedrooms, tiled living areas and dining areas give a feeling of comfort, while the expansive glazing drenches rooms in natural light.

Stone benchtops, quality joinery, European style gas cooktops, wall ovens and dishwashers create inspiring kitchens, and the bathrooms feature full-height tiling, mirrors and semi-frameless shower screens. All of Zest’s apartments are cabled for wireless, broadband, Pay TV, free to air HD digital TV and regular telephones, with multiple TV, high-speed data and phone points.

By orienting the building to maximise the benefit of winter sun for passive warmth, and minimise the heat from summer’s glare, Zest’s design assists in maintaining year-round comfort and reduces the need for air-conditioning. Fresh air flows, thermal massing, architecturally-designed facade sunshading and extensive use of glazing © copyright - Probity Investments 2015

to make the most of natural light mean the use of mechanical heating and cooling is often unnecessary.

An assessment by Anderson Energy Efficiency, a specialist minimum consultancy, showed Zest’s apartments have achieved a six star NatHERS rating for energy efficiency – making them 40 per cent more energy efficient than the minimum required under the National Building Code and Queensland Development Code. For residents, this translates into future proofing in terms of energy bills and keeps the costs of living low.

Limited offer : Free Furniture Package or stamp / transfer duty on the property

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Schedule of Inclusions, Fixtures & Fittings SCHEDULE OF INCLUSIONS UNIT INTERIORS General

Electrical

BUyERS chOIcE Of cOlOUR SchEmE: › “Salt”= Neutral / Light Tones. › “Pepper” = Neutral / Midtones . › “Chilli” = Black & White with signature colour.

Tv: › All units connected to aerial for access to high-definition digital TV. › Free-to-air TV point to living room and bed 1.

WallS: Low sheen acrylic painted plasterboard walls.

TElEphONE: Telephone point to the living room & bedroom 1.

lIvING: Floors tiled.

aIR-cONdITIONING: Ducted to living & bedrooms.

pay Tv: A Pay TV point to living room, bed 1.

BEdROOm flOORS: Wool blend carpet with underlay. cEIlINGS: Painted Plasterboard. cORNIcE: Square set. aRchITRavES: Timber with Paint finish.

SkIRTING: Timber with Paint finish.

kitchen applIaNcES › European style stainless steel gas cooktop. › European style 600 wide oven. › Underbench oven unit types — B-1, C-1, C-2, C-4 & C-5. › Wall oven unit types — A-1, A-2, A-3, A-4 A-5, B-2 & C-3. › European style 600 wide retractable rangehood. › European style 600 stand alone stainless steel dishwasher. flOOR: Tiled.

BENch TOpS: Reconstituted stone.

JOINERy & kIck: Laminate finish with melamine internal carcass finish.

Tap WaRE: Flick mixer chrome finish.

Bathroom vaNITy BENch TOpS: Reconstituted stone.

JOINERy & kIck: Laminate finish with melamine internal carcass finish.

Tap WaRE: Flick mixer chrome finish to shower & basin. flOORS: Tiled.

WallS: Fully tiled.

TOIlET: White vitreous china.

cOmmON facIlITIES & fEaTURES Services GaRBaGE: Garbage chute provided. lIfT: 2 x passenger lifts.

ENERGy RaTING: All residential units to achieve a minimum 6 star energy efficiency rating.

RESIdENT maNaGER: On-site Manager

IT and communications INTERNET: Broadband cabling provided. 1 service line to each apartment.

TElEphONE: All cabling to be minimum CAT 5.

Security accESS cONTROl: Proximity Card controlling access to all common areas.

INTERcOm: Video intercom service to apartments.

cOmmON aREaS car park flOOR: Sealed reinforced concrete with line marking. cEIlINGS aNd WallS: Off form concrete.

SEcURITy: Security access to basement car park.

ShOWER: Rail shower.

foyers & common areas

laundry

cEIlINGS: Painted plasterboard.

WallS: Painted plasterboard with tiles to splashback. flOORS: Tiled. clOThES dRyER: 4kg dryer supplied.

WallS: Painted plasterboard. flOORS: Tiles to ground level foyer.

Tiles to lift lobby zone & carpet elsewhere.

Tap WaRE: Flick mixer chrome finish.

ROOf TOp TERRacE: Rooftop terrace with TV screen, BBQ/Bar areas, covered seating/eating areas, informal gathering spaces, landscaped gardens and pool.

Bedrooms

External

WaRdROBES: Mirrored doors, full width melamine shelf with hanging rail and storage unit below.

WINdOWS: Powder coated aluminium frames.

TUB: Proprietary laundry tub unit.

Balconies

WallS: Painted rendered block work or painted concrete.

ROOf (REfER plaNS fOR ExTENT): Reinforced concrete slab. dRIvEWayS aNd paThS: Exposed aggregate finished concrete.

flOOR: Tiled.

BalUSTRadE: Aluminium framed glass or rendered masonry / concrete balustrade. cEIlINGS: Painted stipple finish.

KGU28573 Schedule of finishes_v4.indd 1

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The finishes and fittings contained in this Schedule of Finishes are preliminary only and are subject to change, without notice, during the course of the Development. The Seller is entitled to substitute any item contained in this Schedule of Finishes with an item of equivalent (or higher) quality or appearance. Refer also to clause 6.7 of the Contract. KGU28573 Produced by totogroup.com.au.

29/05/14 12:37 PM

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CASH FLOW ANALYSIS Cash Flow Analysis - 1 Bedroom, Bathroom "ZEST APARTMENTS" Kelvin Grove 1 QLD 4059 - Unit 509, Level 5, 1 bedroom, 1 bathroom + Study Nook (52 + 9 sqm) PROPERTY PURCHASE INFORMATION Total Property Price Land Price (if applicable) Mortgage Loan to Value Ratio (LVR) Mortgage Interest Rate (I/O) Borrowing Costs Conveyancing Professional Fees (normally $1,500) Transfer/Stamp Duty on Property Other Government Fees Council Rates, Water & Sewerage Body Corporate Fees Weekly Rent (as per furnished rent appraisal) Property Management Fees Landlord & Contents Insurance (if applicable) Furniture Pack (normally $11,700 OR Free Stamp Duty)

TAX ASSESSMENT INFORMATION $

$ $ $ $ $ $ $

335,000 NA 80% 5.00% 1,500 FREE 10,150 819 2,500 2,892 465 7.5% 305 FREE

ANNUAL HOLDING COSTS

$ $

100,000 11,960

Total Annual Holding Costs plus Property Depreciation Estimate plus Allowable Borrowing Costs

$ $ $

20,910 11,960 300

Total Annual Tax Decuctions

$

33,170

Gross Annual Rental Income plus Gross Annual Personal Income

$ $

24,180 100,000

Total Gross Annual Income

$

124,180

Total Gross Annual Income less Total Annual Tax Deductions

$ $

124,180 33,170

Annual Taxable Income with the new property

$

91,010

Tax Payable without the new property (excl. any tax levies) less Tax Payable with the new property (excl. any tax levies)

$ $

24,947 21,621

Total Tax Savings with the new property

$

3,326

Total Tax Savings with the new property plus Gross Annual Rental income

$ $

3,326 24,180

Total Annual Income (post-tax)

$

27,506

Gross Annual Personal Income Property Depreciation Estimate

TAX CALCULATIONS

Mortgage Repayments Council Rates, Water & Sewerage Body Corporate Fees Property Management Fees Landlord Insurance Other expenses

$ $ $ $ $ $

13,400 2,500 2,892 1,814 305 -

Total Annual Holding Costs

$

20,910

Gross Annual Rental Income less Total Annual Holding Costs

$ $

24,180 20,910

Total Annual Income (post-tax) less Total Annual Holding Costs

$ $

27,506 20,910

ANNUAL CASH FLOW (Excl. Tax Deductions)

$

3,270

ANNUAL CASH FLOW (Incl. Tax Deductions)

$

6,596

WEEKLY CASH FLOW (Excl. Tax Deductions)

$

63

WEEKLY CASH FLOW (Incl. Tax Deductions)

$

127

GROSS ANNUAL RENT YIELD

7.2%

VACANCY RATE

2.1%

ANNUAL CAPITAL GROWTH

8.8%

GROSS RETURN ON INVESTMENT (ROI)

16.0%

DISCLAIMER: This Cash Flow Summary involves projections and assumptions that can be affected by a number of unforeseen variables. The forecasts and assumptions are a prediction, and whilst Probity Investments has made every effort to ensure they are based on reasonable information, they may be affected by assumptions that do not necessarilly eventuate, or by known or unknown risks and uncertainties. It should be noted that past performance is not necessarilly a reliable indication of future performance. The information in this publication does not represent financial advice and should not be regarded as such. It has been prepared without taking into account your financial situation or investment objectives. You should consider the appropriateness of the information in regards to your current financial situation or needs. Probity Investments Pty Ltd accepts no responsibility for the accuracy or completeness of any such material. The information is subject to change without notice and Probity Investments Pty Ltd is under no obligation to update the information or correct any assumptions which may change over time.

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CASH FLOW ANALYSIS Cash Flow "ZEST Analysis - 2 Bedrooms, 1 Bathroom APARTMENTS" Kelvin Grove QLD 4059 - Unit 1311, Level 13, 2 bedroom, 1 bathroom + Study Nook (71 + 9 sqm) PROPERTY PURCHASE INFORMATION Total Property Price Land Price (if applicable) Mortgage Loan to Value Ratio (LVR) Mortgage Interest Rate (I/O) Borrowing Costs Conveyancing Professional Fees (normally $1,500) Transfer/Stamp Duty on Property Other Government Fees Council Rates, Water & Sewerage Body Corporate Fees Weekly Rent (as per furnished rent appraisal) Property Management Fees Landlord & Contents Insurance (if applicable) Furniture Pack (normally $14,500 OR Free Stamp Duty)

TAX ASSESSMENT INFORMATION $

$ $ $ $ $ $ $

490,000 NA 80% 5.00% 1,500 FREE 15,575 1,280 2,500 3,666 575 7.5% 305 FREE

ANNUAL HOLDING COSTS

$ $

100,000 13,823

Total Annual Holding Costs plus Property Depreciation Estimate plus Allowable Borrowing Costs

$ $ $

28,313 13,823 300

Total Annual Tax Decuctions

$

42,436

Gross Annual Rental Income plus Gross Annual Personal Income

$ $

29,900 100,000

Total Gross Annual Income

$

129,900

Total Gross Annual Income less Total Annual Tax Deductions

$ $

129,900 42,436

Annual Taxable Income with the new property

$

87,464

Tax Payable without the new property (excl. any tax levies) less Tax Payable with the new property (excl. any tax levies)

$ $

24,947 20,309

Total Tax Savings with the new property

$

4,638

Total Tax Savings with the new property plus Gross Annual Rental income

$ $

4,638 29,900

Total Annual Income (post-tax)

$

34,538

Gross Annual Personal Income Property Depreciation Estimate

TAX CALCULATIONS

Mortgage Repayments Council Rates, Water & Sewerage Body Corporate Fees Property Management Fees Landlord Insurance Other expenses

$ $ $ $ $ $

19,600 2,500 3,666 2,243 305 -

Total Annual Holding Costs

$

28,313

Gross Annual Rental Income less Total Annual Holding Costs

$ $

29,900 28,313

Total Annual Income (post-tax) less Total Annual Holding Costs

$ $

34,538 28,313

ANNUAL CASH FLOW (Excl. Tax Deductions)

$

1,587

ANNUAL CASH FLOW (Incl. Tax Deductions)

$

6,225

WEEKLY CASH FLOW (Excl. Tax Deductions)

$

31

WEEKLY CASH FLOW (Incl. Tax Deductions)

$

120

GROSS ANNUAL RENT YIELD

6.1%

VACANCY RATE

2.1%

ANNUAL CAPITAL GROWTH

8.8%

GROSS RETURN ON INVESTMENT (ROI)

14.9%

DISCLAIMER: This Cash Flow Summary involves projections and assumptions that can be affected by a number of unforeseen variables. The forecasts and assumptions are a prediction, and whilst Probity Investments has made every effort to ensure they are based on reasonable information, they may be affected by assumptions that do not necessarilly eventuate, or by known or unknown risks and uncertainties. It should be noted that past performance is not necessarilly a reliable indication of future performance. The information in this publication does not represent financial advice and should not be regarded as such. It has been prepared without taking into account your financial situation or investment objectives. You should consider the appropriateness of the information in regards to your current financial situation or needs. Probity Investments Pty Ltd accepts no responsibility for the accuracy or completeness of any such material. The information is subject to change without notice and Probity Investments Pty Ltd is under no obligation to update the information or correct any assumptions which may change over time.

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CASH FLOW ANALYSIS Cash Flow Analysis - 2 Bedrooms, 2 Bathrooms "ZEST APARTMENTS" Kelvin Grove QLD 4059 - Unit 604, Level 6, 2 bedroom, 2 bathroom + Study Nook (73 + 11 sqm) PROPERTY PURCHASE INFORMATION Total Property Price Land Price (if applicable) Mortgage Loan to Value Ratio (LVR) Mortgage Interest Rate (I/O) Borrowing Costs Conveyancing Professional Fees (normally $1,500) Transfer/Stamp Duty on Property Other Government Fees Council Rates, Water & Sewerage Body Corporate Fees Weekly Rent (as per furnished rent appraisal) Property Management Fees Landlord & Contents Insurance (if applicable) Furniture Pack (normally $14,500 OR Free Stamp Duty)

TAX ASSESSMENT INFORMATION $

$ $ $ $ $ $ $

525,000 NA 80% 5.00% 1,500 FREE 16,800 1,404 2,500 3,522 660 7.5% 305 FREE

ANNUAL HOLDING COSTS

$ $

100,000 15,208

Total Annual Holding Costs plus Property Depreciation Estimate plus Allowable Borrowing Costs

$ $ $

29,901 15,208 300

Total Annual Tax Decuctions

$

45,409

Gross Annual Rental Income plus Gross Annual Personal Income

$ $

34,320 100,000

Total Gross Annual Income

$

134,320

Total Gross Annual Income less Total Annual Tax Deductions

$ $

134,320 45,409

Annual Taxable Income with the new property

$

88,911

Tax Payable without the new property (excl. any tax levies) less Tax Payable with the new property (excl. any tax levies)

$ $

24,947 20,844

Total Tax Savings with the new property

$

4,103

Total Tax Savings with the new property plus Gross Annual Rental income

$ $

4,103 34,320

Total Annual Income (post-tax)

$

38,423

Gross Annual Personal Income Property Depreciation Estimate

TAX CALCULATIONS

Mortgage Repayments Council Rates, Water & Sewerage Body Corporate Fees Property Management Fees Landlord Insurance Other expenses

$ $ $ $ $ $

21,000 2,500 3,522 2,574 305 -

Total Annual Holding Costs

$

29,901

Gross Annual Rental Income less Total Annual Holding Costs

$ $

34,320 29,901

Total Annual Income (post-tax) less Total Annual Holding Costs

$ $

38,423 29,901

ANNUAL CASH FLOW (Excl. Tax Deductions)

$

4,419

ANNUAL CASH FLOW (Incl. Tax Deductions)

$

8,522

WEEKLY CASH FLOW (Excl. Tax Deductions)

$

85

WEEKLY CASH FLOW (Incl. Tax Deductions)

$

164

GROSS ANNUAL RENT YIELD

6.5%

VACANCY RATE

2.1%

ANNUAL CAPITAL GROWTH

8.8%

GROSS RETURN ON INVESTMENT (ROI)

15.3%

DISCLAIMER: This Cash Flow Summary involves projections and assumptions that can be affected by a number of unforeseen variables. The forecasts and assumptions are a prediction, and whilst Probity Investments has made every effort to ensure they are based on reasonable information, they may be affected by assumptions that do not necessarilly eventuate, or by known or unknown risks and uncertainties. It should be noted that past performance is not necessarilly a reliable indication of future performance. The information in this publication does not represent financial advice and should not be regarded as such. It has been prepared without taking into account your financial situation or investment objectives. You should consider the appropriateness of the information in regards to your current financial situation or needs. Probity Investments Pty Ltd accepts no responsibility for the accuracy or completeness of any such material. The information is subject to change without notice and Probity Investments Pty Ltd is under no obligation to update the information or correct any assumptions which may change over time.

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Current Rent Appraisals

CAPITAL GROWTH & RENTAL RETURN PROSPECTS

Principally, the suburb of Kelvin Grove is populated by young people with over 41% of the population aged between 20 and 34. House prices in Kelvin Grove have been consistently above the Brisbane average. In February 2014, the average price for the area was $617,000, compared to an average Brisbane wide price of $497,500 in the same period. Price growth has also outstripped Brisbane’s by a factor of between $50,000-80,000 over the last three years to 2014.

You also have a vast pool of quality tenants available - with 60.29% of the Kelvin Grove population renting (almost twice the Brisbane average), and demographic data showing there are 252,000 people employed across more than 30,000 businesses within a ten minute drive of Zest!

*Rental apraisals provided by Resoulution Research Strategists on 29th May 2014

FAST FACTS Over the past four years, median weekly rents of one bedroom apartments have grown by an average annual rate of 7%. This rate of growth has significantly outperformed that of Brisbane’s inner city and inner north at 2.7% and 4.8% respectively.

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According to the 2011 Census, rents achieved within Kelvin Grove were at a 19% premium to the State and a 23% premium to the nation’s weekly median rent.

Over the past ten years, the median apartment price within Kelvin Grove has grown at an impressive average annual rate of 4.3% to reach $525,000 in 2013.

Over both the long (10 years) and medium (5 years) term timeframes, median price growth throughout Kelvin Grove has outperformed rates recorded across the Brisbane City Council Local Government Area.

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Schedule of Body Corporate Fees & Tax Depreciation Estimates

Total Annual Levies started from $2,860.72

TAX DEPRECIATION for the first year up to approx. $15,208

Strata Dynamics manages bodies corporate and community titled communities. Their clients are a range of small and large complexes from the very small duplexes in the suburbs to large high rises in the CBD. Most are residential, some are commercially used and others are a mix of different uses. No building is too small or too large for us – we have extensive experience in all types.

BMT Tax Depreciation, as a specialist Quantity Surveying firm, maximise depreciation deductions for property investors Australia wide. We are the experts in depreciation schedules for investment properties.

Completed report available on our website: www.probityinvestments.com

Overview of Developer & Builder

Hindmarsh Development — with a Nationwide record for excellence Hindmarsh Development is committed to ensuring every one of their projects meets the highest benchmarks for quality. By closely managing every aspect of the project, from planning and design through to the final details of interior finishes and property management, Hindmarsh delivers on intent—on time, and within budget.   

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Hindmarsh Construction is one Nettletontribe is a national firm of the nation’s leading builders, with a proven track record of delivering outstanding designs to the highest standards of quality and workmanship. Recent projects have included outstanding Canberra apartment projects such as Altitude and Sorell, Adelaide’s world-class, LEED-rated South Australian Health and Medical Research Centre (SAHMRI) and the Australian National University’s Science and Engineering project, the first Six Star Green Star by Design and Six Star Green Star As Built University building in the ACT.

of architects with over 40 years experience in the design and planning of beautiful, functional and innovative places for people. The practice has been recognised for excellence with numerous awards from leading industry associations including the Australian Institute of Architects, Property Council of Australia, Urban Development Institute of Australia and Urban Taskforce of Australia.

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Purchase Process Step 1:

Email or fax your completed Expression of Interest (EOI) form and Payment Confirmation of the $1,000 Initial Deposit to Probity Investments Payment of your Initial Deposit can be made by Credit Card or by Electronic Funds Transfer (EFT) to the Trust Account details shown below in Step 4.This will secure your chosen property and take it off the market whilst your contract documents are prepared and delivered to you for signing.

Note: your initial deposit will be refunded to you if requested at any time before your Contract of Sale are fully executed by all parties

Step 2:

Complete and return the Contract of Sale documents to our office within 7 days of receiving them

Step 3:

Upon receiving your signed Contract of Sale documents, the Property Developer will counter-sign and enter the official Contract Date.

Step 4:

The full deposit, being 10% of the purchase price less the Initial Deposit, must be paid within 14 days from the Contract Date. Payment options are as follows:

a) Cash Payment by EFT to the following Trust Account Bank Name: Account Name: Account No.: BSB: Reference:

Westpac Banking Corporation (Swift Code: WPAC AU2S) Thomson Lawyers Trust Account 971359 034002 Your Surname, Lot Number & “Zest” (so funds can be identified)

OR b) Bank Guarantee Email your lender’s formal approval to Probity Investments

Step 5:

Settlement, payment of the balance of the purchase price, is due 14 days from Title Registration.

Construction completion is due approximately mid-2016, and Title Registration will be notified to you via your nominated solicitor close to that time.

Contact your Probity Investment Advisor on 07 3198 6200 to discuss your investment decision in more detail. © copyright - Probity Investments 2015

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Our Recommendations

It’s no secret that the property market in South East Queensland, and especially key areas of Brisbane, has captured the attention of property investors all over Australia and internationally.

Economists have forecast Brisbane’s economic growth to outstrip population growth, with a $215B economy creating 1.5M jobs by 2031.

However, Zest Apartments in Kelvin Grove’s Urban Village is perfectly positioned to take full advantage of the high demand for accommodation due to its proximity to the QUT campus of over 10,000 students and 2,000 employees, and the Royal Brisbane Hospital complex with over 7,200 staff forming part of a strong local employment node of 31,000 local businesses & a total workforce of over 250,000 people employed within a 10 minute drive of Zest Apartments. Most who work in health & education are young professionals, and Zest Apartments has been designed specifically for this market.

Our comprehensive Cash Flow Analysis, supported by independent rent appraisals and depreciation estimates, further supports our recommendation with a strong return on investment (ROI) with potential Rent Yields of up to 7.2% and Capital Growth of over 8.8%.

The Victoria Park Golf Course located right next door to Zest Apartments makes it even more attractive to the rental market, not to mention the Brisbane CBD is an easy 15 minute walk down the road.

There is so much information and statistical analysis supporting our recommendation, so I encourage you to cross check our research as part of your own due diligence. Don’t take too long making your decision as this is the last residential development space in Kelvin Grove’s Urban Village and they will sell fast.

Have a great day,

Jeremy Foster Managing Director & Licensee Probity Investments Pty Ltd

© copyright - Probity Investments 2015

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