1. Disclaimer NRAS Scheme Helping you build a better future There is no relationship implied or real between Federal or Sate Governments and Investors. This information as provided is not endorsed by the Australian and/or Queensland State Governments This information reflects the NRAS Schemes understanding of NRAS requirements. This summary has been provided based on the information available at the time of preparation. The details should be confirmed by buyers prior to entering into unconditional contracts where the returns anticipated are subject to the relevant properties receiving NRAS incentives.

2. Who are we? NRAS Scheme Helping you build a better future *15 Years in the property industry *Boutique Company *Special personal service to clients

3. Strategy *We will look at your personal circumstance NRAS Scheme Helping you build a better future

4. Planning NRAS Scheme Helping you build a better future If you Fail to Plan you are planning to FAIL We have 20-30 years of holiday after retirement

5. Now is the time NRAS Scheme Helping you build a better future We should be working on creating Wealth for our Retirement

6. The Realization NRAS Scheme Helping you build a better future Bureau Statistics tells us: There are approx 2 Million Pensioners in Australia and 75% live on less than: $380 per week

7. Pensioners Struggle NRAS Scheme Helping you build a better future Do you think they planned for this? Imagine monitoring the heating, lights, Air-conditioning and on top of that paying your rates?

8. Baby Boomers 1946-1955 NRAS Scheme Helping you build a better future Government provide pension. Population Explosion

9. Australia is the Single Largest Demographic NRAS Scheme Helping you build a better future * Living Choices * Spend Pattern * Work Habits Determines our:

10. Australia’s Population is living Longer than ever before NRAS Scheme Helping you build a better future Men living till 80-82 Years Old Female living till 86-87 Years Old Australia is rated 4 th Life expectancy

11. NRAS Scheme Helping you build a better future In association with Feren-Stockdale & Leggo 1946 - 19 Working to support 1 Retiree 2020 - 3 Working to support 1 Retiree 2050 - 2 Working to support 1 Retiree Who is going to fund your Pension?

12. Government knows mums and dads are to struggle in retirement NRAS Scheme Helping you build a better future How will they live, save or survive with all the overheads come with living?

13. The Government is helping us by giving incentives grants, tax advantages, etc. NRAS Scheme Helping you build a better future This is why we are here tonight to show you how you can take advantage of these for yourself.

14. Global Financial Crises What can you do? NRAS Scheme Helping you build a better future Explore your options for Wealth creation and take advantages of this situation.

15. How fine is Australia really going? NRAS Scheme Helping you build a better future We have Farming, Minerals, Education, Infrastructure, Medicals Did you know? Australia the one of the Highest Desirable Destinations in the World?

16. NRAS Scheme Helping you build a better future

17. Opportunity NRAS Scheme Helping you build a better future O.P.M Other Peoples Money Right StructureRight Strategy Right LeverageLow Interest Rates

18. Now is the Right time to Invest NRAS Scheme Helping you build a better future It gives you everything you need to make it happen. Maximum Tax Advantages Govt Grant $9,524 1 st Year alone Abundance of Tenants Leverage Your Money

19. What is the Purpose of NRAS? NRAS Scheme Helping you build a better future Started for Essential Services People Police, Army, Medical

20. Is it Public Housing? NRAS Scheme Helping you build a better future No, Why not? There are criterias to meet like:

21. Is it Public Housing? NRAS Scheme Helping you build a better future No, Why not? There are criterias to meet like:

22. Who needs to qualify NRAS Scheme Helping you build a better future DevelopersBuilders Managers Tenants

23. Qualification for NRAS Tenants NRAS Scheme Helping you build a better future Earning criterias for a tenant Tenants need to register on a waiting list. Single Tenant needs to earn $815+ weekly 2 Adults and 1 Child - $1,397+ weekly

24. NRAS Scheme Helping you build a better future

25. The NRAS Scheme: NRAS Scheme Helping you build a better future It is a Federal and State Government backed incentive scheme designed to encourage Investors to develop additional houses for the rental market. It has the effect of providing an affordable rent program for low/medium wage earners. It is designed to stimulate institutional and to a lesser extent individuals to invest in rental property. It is NOT a social welfare program – It targets Middle Australian Families. It will provide government “Tax Free Incentives” of $623 million for 50,000 new affordable rental dwellings to be occupied between January 2009 and June 2012. The PM has announced that the further 50,000 incentives will be offered post 2012 if ‘demand remains strong’.

26. Policy Goals of Government The Incentive has two primary policy goals. The first is to increase the supply of new rental housing directly into the housing market. The second goal is to improve affordability for the eligible target groups. NRAS will provide an investment platform to facilitate the construction of 50,000 houses nationally. NRAS Scheme Helping you build a better future

27. NRAS provides A tax free incentive of $9,140 (June 2010) per dwelling/year for 10 years. Escalated annually at rental component of CPI. The incentive is paid to eligible owners at the end of each tax year in two parts: A Commonwealth Government Incentive currently of $6 855 per dwelling per year as a refundable tax offset or payment; and A State or Territory Government Incentive currently of $2 285 per dwelling per year in direct or in kind financial support. New houses or units are rented at a discount of 20-25% to eligible households. NRAS Scheme Helping you build a better future

28. NRAS in summary: Properties that apply for and receive the NRAS incentive must remain in the scheme for a minimum of 10 years. There is a provision for: 1. On selling the properties provided they remain in the scheme or 2. For replacing them with the similar properties in the same area or 3. Opting out of the scheme before your 10 years is up by giving QAHC 6 months notice. NRAS Scheme Helping you build a better future

29. Market Rent is assessed as the Market Value of Rents charged by similar accommodation in the Local Real Estate Rental Market and needs to be justified. Long term Tenancy Agreements provide tenant security There is No Discrimination through discernible quality of housing NRAS housing is distributed randomly through estates generally at a maximum take-up of 30% But entire In-Fill sites may be offered through NRAS (Say 8-50 units). NRAS Scheme Helping you build a better future

30. Rents and the NRAS Incentive are indexed annually to the rental component of CPI. Current rental indexation for target markets is running at between 6 and 12%. Market Values (Rents) are subject to independent assessment in years 1,4 and 7. Suitable stock can range from studio apartments at $400 pw. Eligible households have Income thresholds that are indexed: NRAS Scheme Helping you build a better future

31. The Current Thresholds as at June 09 are: NRAS Scheme Helping you build a better future Household typeInitial income limit $Upper income limit $ One adult42,38652,983 2 adults58,59673,246 3 adults74,80893,510 4 adults91,048113,773 Sole parent with 1 child58,63873,298 Sole parent with 2 children72,69590,869 Sole parent with 3 children86,752108,440 Couple with 1 child72,65390,817 Couple with 2 children86,710108,388 Couple with 3 children100,768125,960 Household income limits are indexed annually on 1 May in accordance with the NRAS tenant income index.

32. Providing the incomes reach the upper limit for one year and still remain within NRAS tenancy eligibility criteria provide the income then reduces. Those that exceed this limit are provided a 12 month notice to leave period. Normal tenancy pre-checks are required and income levels do not guarantee eligibility Groups particularly targeted are the community “essential” persons such as policeman, fireman, teachers and nurses. NRAS Scheme Helping you build a better future

33. Who is the Queensland Affordability Housing Consortium (QAHC) QAHC is a Charitable Company specifically established to maximize the provision of NRAS funded properties. The Consortium aims to provide at least 5,000 new dwellings in Queensland and around 5,000 through inter-state partnerships in NSW and Victoria. QAHC charges an indexed Consortium fee of $12 per dwelling per week. As a Charitable Company QAHC must discount rents 20-25% NRAS Scheme Helping you build a better future

34. QAHC Provides: NRAS Scheme Helping you build a better future A 10 year Head-Lease to investor owners of properties. The head-lease gives control to QAHC and security for both the investor and manager. A Secure Income stream via a mixture of Insurance policies, Self Insurance by QAHC and Management Policies that cover; 1- Building replacement and owners contents. 2- Public liability. 3- Repairs for tenant damage. 4- Tenant Arrears & Tenant Abandonment & 5- Vacancies via Immediate Access to extensive potential tenant Data Bases. Whilst not a guaranteed rent, the ‘Secured Income Stream’ provides a high degree of income-certainty for investors. An Accredited Housing Manager for the NRAS funded properties. Housing Managers receive a tenancy management fee of 10% of the market rent ( Indexed & excluding the NRAS incentive).

35. Typical Property Management Structure NRAS Scheme Helping you build a better future Property Owner Head Lease QAHC Property Manager Property Tenant Management Agreement Manage Property Tenancy Agreement This structure is designed to give maximum protection to the Owner and increase the level of responsibility carried by the Property Manager by way of the Management Agreement

36. NRAS is it worth it…. and what’s in it for YOU? The NRAS Incentives are worth $9,140 per year (CPI ADJUSTED) paid regardless of the level of rent you receive. Guarantee for 10 Years. If your annual income is $15,600 and the tenant pays 25% below market value, then you give away $4,420 to the tenant, to receive $9,140 from the Government. That’s right! You give the tenant a small discount and the government gives you a big incentive. In this example you are $4,328 per year better off. The annual incentive of $9,140 is TAX FREE and not assessable for income tax Also the $4,420 your giving to the tenant can be claimed against your taxable income. The TAX FREE status of the incentive amplifies you investment returns. As you still receive all of your normal depreciation and investment allowances. NRAS Scheme Helping you build a better future

37. Section 2

38. * We are Leveraging our Money NRAS Scheme Helping you build a better future Why do people invest in property? * We can pay off our home quicker * Create an on-going income for the rest of our lives

39. If there was a way for you to either create an ongoing income for the rest of your life or pay off your home in 10 years. How much on a weekly basis will you be willing to put aside to make this happen? NRAS Scheme Helping you build a better future

40. Property Investment Price $370,000 Stamp Duty 4,725 Loan 2,620 Solicitor 1,000 Total Interest Rate Total Yearly Payment Weekly $378,715 $26,472 $509 6.99% Cash Flow Analysis

41. NRAS Scheme Helping you build a better future Yearly Property Outgoings Rates. Rent Cover Plus. Insurances. $5,000 Maintenance. Property Manager. Yearly $26,472 Weekly $ 509 Cash Flow Analysis

42. NRAS Scheme Helping you build a better future Out Goings $ 5,000 Yearly $ 26,472 Weekly $ 509 Total Outgoings $ 31,472 $ 605 Cash Flow Analysis

43. NRAS Scheme Helping you build a better future Rental Income Yearly $ 18,121 Weekly $ 350 Yearly $ 31,472 Weekly $ 605 Cash Flow Analysis

44. NRAS Scheme Helping you build a better future Deductions Depreciation Internal Fittings and Fixtures $ 4,657 Building Depreciation - 2.5% over 40 years $ 4,750 Loan Cost / 5 years ($2,500) $ 500 Total $ 9,907 Rent $ 18,121 $ 350 Shortfall Bal $ 13,351 - $ 255 Yearly $ 31,472 Weekly $ 605

45. Cash Flow Analysis NRAS Scheme Helping you build a better future Tax Refund Salary $80,000 Tax $18,928 Deductions -$ 9,907 Total Deduct -$ 23,258 Total Deductions -$23,258 New Taxable Income $56,642Tax $10.992 Tax Savings of $7,936 $152 week Rent. $ 18,121 $ 350 Shortfall Bal $ 13,351 - $ 255 Yearly $ 31,472 Weekly $ 605

46. Cash Flow Analysis NRAS Scheme Helping you build a better future Total Out goings $ 605 Rent $ 350 Taxman $ 152 Your contribution $ 103 In Summary

47. Cash Flow Analysis NRAS Scheme Helping you build a better future Total Out goings $ 605 $ 605 Rent $ 350 (– 20%) $ 280 Taxman $ 152 $ 165 Your contribution $ 103 NRAS CASHFLOW Govt Grant (TAX FREE $9,524) $183 NRAS $ 23+ Norm NRAS

48. Cash Flow Analysis NRAS Scheme Helping you build a better future HOME Norm Inv Prop NRAS $605 p.wk $103 p.wk $23 p.wk In your pocket Emotional Calculated Opportunity

49. NRAS Scheme Helping you build a better future How long does Property take to double in value and why do we need to know? * We can use it to work out how long it will take to Pay off our home. * We can also work out how to create an ongoing income for the rest of our lives.

50. NRAS Scheme Helping you build a better future On average property has doubled approx every 10 years In Australia

51. NRAS Scheme Helping you build a better future Property Growth History Image from - http://www.smartcompany.com.au/property/20100921-house-prices-over-the-decades.html

52. NRAS Scheme Helping you build a better future How do we use this to pay your home loan off in 10 years with minimal cash input BY YOU.

53. NRAS Scheme Helping you build a better future How to create an ongoing income for the rest of your life using property

54. NRAS Scheme Helping you build a better future 10 $ 740.000 1 0 $ 370.000 20 $1.480.000 2 5 $ 555.000 Yrs (2.5) $462.000 3 (5) $ 555.000 $1.480.000 $1.480.000 Total Assets $ 4.440.000 Owe $ 1.387.000 Assets $ 3.053.000 4% $122.650

55. NRAS Scheme Helping you build a better future 10 $ 740.000 1 0 $ 370.000 20 $1.480.000 2 5 $ 555.000 Yrs (2.5) $462.000 3 (5) $ 555.000 $1.480.000 Sell 3 rd Investment $ 1.480.000 Owe $ 1.387.000 Have 2 properties debt FREE