1. Improved property yields by using NRAS

2. The National Rent Affordability Scheme - A Summary - NRAS

3. The Housing Rental Market The Commonwealth Government has identified 1.5 million households that are eligible for the National Rental Affordability Scheme [NRAS] The supply shortfall is running at around 30,000 - 40,000 dwellings a year.

4. NRAS provides A tax free incentive of $9,120 per dwelling / year for 10 years. The incentive is paid to eligible owners as a tax certificate at the end of each tax year in or about July In exchange for the Tax free incentives New houses or units are rented at a discount of 25% to market rent to eligible tenants. NRAS

5. Market Rent is assessed as the Market Value of Rents charged for similar accommodation in the Local Real Estate Rental Market. Long term Tenancy Agreements provide tenant and landlord 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% NRAS

6. 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% per annum Market Values (Rents) are subject to independent assessment in years 1, 4 and 7. Owners must provide those assessments Suitable stock can range from studio apartments at $400 pw. NRAS

7. Eligible households have income thresholds Parent/s with 3 children earning*$83K pa Nett Parent/s with 2 children earning*$69K pa Nett Parent/s with 1 child earning *$56K pa Nett Couples/singles with 0 children *$40K pa Nett Income thresholds are indexed and can be exceeded by 25% for up to 2 years and still remain within NRAS tenancy eligibility criteria provide the income then reduces. 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, teacher and nurses. *Income figures are approx and will vary and are given as a guide only* NRAS

8. A 10 year Head-lease to the investor owner of the property. A Secure Income stream via a mixture of Insurance policies, Self Insurance and Management Policies that cover Building replacement & Owners Contents Public liability Repairs for tenant damage Tenant Arrears & Tenant Abandonment Ensure minimum vacancy through immediate access to extensive tenant waiting lists An accredited Housing Manager for the NRAS funded properties NRAS

9. A Typical NRAS enhanced property investment yield 4 Bed House and land Market Rental Per week NRAS discount 25% Reduced rent per week Tax free rental annual subsidy Factored up at 46.5% marginal tax rate Rent subsidy per week *Gross rent per week *[Before allowing for interest, expenses and cash flow factors] $400K $400 ($100) $300 $9,120 $17,940 $345 $645 NRAS

10. Typical yield comparison $400,000 - 4 bed house NormalNRAS Enhanced Rent per week $400$300 ($645*) Nominal Gross Yield 4.4%7.7% * assumes a 46.5% marginal tax rate NRAS

11. Summary 10 year head lease Significant yield improvement Insured occupation rates,rental payment and tenant damage cover Full property management services Increased salability of the NRAS enhanced property NRAS

12. Disclaimer 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. NRAS

13. For further details on NRAS contact LJ Gilland Real Estate Pty Ltd Linda & Carlos Debello 0400 833 800 & 0409 995 578 NRAS