By combining our expertise we can optimise this window of opportunity for your clients and yourself.

Transcription

1 Mr J. Smith Company Name Address Line 1 Address Line 2 Town, State, CODE Dear Mr. Smith, As you are aware we are now experiencing a once in a century phenomenon the lowest interest rates in 45 years concurrent with the highest property yields for 3 years. Due to recent changes in legislation a Self Managed Super Fund (SMSF) is effectively a tax haven and now has the ability to borrow funds to invest inexpensively. Are you taking advantage of this opportunity for your clients and yourself? The Property Investment Company and Strategic Financing would like to present the following properties and services. With exceptionally high yields and established long term leases, these properties are excellent within a SMSF, or as a stand alone investment. the figures speak for themselves! For example, the Warriewood property featured on the following 2 pages offers an 8.73% net yield and a depreciation of 1.89% - so by borrowing 7% of the purchase price on an interest only basis, you have a POSITIVE cash flow of $28 per week and a potential after tax return of 21% per annum over a 1 year period. For less than $2, and using one of Australia s leading SMSF lawyers Grant Abbott from SMSF Strategies, you can set up a brand new superannuation fund and establish the loan to purchase an investment property through one of the major banks. The Property Investment Company, Strategic Financing and SMSF Strategies can facilitate this entire process for you and your clients. The Property Investment Company acts as a buyers advocate by sourcing optimum investment property opportunities for your portfolio. The vendors of the properties featured are highly motivated to sell and will move on price. The following compendium of properties is just a sample from our investment portfolio. For the full listing, please contact (as per his contact details below). Paul Miron of Strategic Financing is recognized as one of the top mortgage brokers in Australia, facilitating both SMSF and commercial loans. Grant Abbott is respected as Australia s leading SMSF strategist, author and presenter and will be available to assist you and your clients. By combining our expertise we can optimise this window of opportunity for your clients and yourself. Grant Abbott will be the keynote speaker at a forthcoming seminar on SMSF strategies. We are pleased to invite you (and up to 3 of your VIP clients) to attend. Please contact us for a reservation. Please feel free to contact us on our Freecall Number to discuss any opportunities outlined in this letter. Yours sincerely, Paul Miron Managing Director Senior Finance Manager The Property Investment Company Strategic Financing Tel (2) Tel(2) Mob Mob Freecall paul@strategicfinancing.com.au mauricewatson@bigpond.com

2 INVESTMENT OPPORTUNITY J6 Warriewood Unit 3, Lot 7 6 Jubilee Avenue, Warriewood NSW SALE DETAIL Price $35, Type Light Industrial Factory Unit + Mezzanine Floor 18sqm Parking 2 spaces Jeremy Raper 18sqm $3,55 net pa Greater of 5% and CPI annually Outgoings Payable by the tenant 3+3 years Security $8,35 J6 is a contemporary design created to sit in context with its natural bush setting. It consists of two distinct building forms, providing a variety of unit types and sizes to cater for a mix of prospective users. The development covers almost 9sqm of floor area, and comprises a total of 75 units a mix of high and low clearance industrial/commercial units, showrooms and storage units. High clearance clearspan warehouse, roller door access, kitchenette, self contained toilet amenities. Current tenants in the development include a child care centre, electricians, builders, plumbers, office users and fashion distributors. INVESTMENT ANALYSIS Yield 8.7% Depreciation benefits are available Phone Freecall Mobile mauricewatson@bigpond.com Bella Vista Baulkham Hills Parramatta J6, WARRIEWOOD Hornsby Warriewood Brookvale Manly

3 PROPERTY INVESTMENT ANALYSIS Self Managed Super Fund Assuming Interest Only at 7% LVR + Costs Property: J6 - Unit 3 (Lot 7) 6 Jubilee Avenue, Warriewood NSW Description: Light Industrial - Factory Unit + Mezzanine Floor summary assumptions Property Value $35, Initial Investment $119,7 Gross Yield 8.73% Net Yield 8.73% Capital Growth Rate 4.5% Inflation Rate 3.% Interest Rate 6.% Marginal Tax Rate 15.% computer projections investment analysis end of year 29 Property Value $35, Purchase Cost $13,24 Investments $119,7 Loan Amount $245,4 Equity $14,96 Capital Growth Rate 4.5% Inflation Rate (CPI) 3.% gross rent/year $3,555 projected results over 1 years Property Value $543,539 Equity $298,499 After-Tax return/year 2.93% Net Present Value $262,694 if sold Selling Costs & CGT $35,57 Equity $262,929 After-Tax return/year 2.4% projections over 1 years 1 year 2 year 3 year 365,75 245,4 12,71 4.5% 3.% 3, ,29 245,4 137, % 3.% 31, ,48 245,4 154, % 3.% 32,416 5 year 436, ,4 191, % 3.% 34,39 1 year 543, ,4 298, % 3.% 39,867 cash deductions Interest (I/O) 6.% expenses.% pre-tax cash flow $-119,7 14,72 15,853 14,72 16,769 14,72 17,713 14,72 19,688 14,72 25,165 non-cash deductions Depreciation of Building 2.% Depreciation of Fittings $. Loan cost 15, total deductions 7, 3 22,2 7, 3 22,2 7, 3 22,2 7, 3 22,2 7, 21,72 tax credit 5.% after tax cash flow $-119,7 rate of return (irr) 2.93% Pre-Tax equivalent 24.63% -1,283 14,57-1,42-1,562 15,349 16,151 income per week -1,858 17,829-2,725 22,44 $28 $295 $311 $343 $432 Disclaimer: Note that the computer projections listed above simply illustrate the outcome calculated from the input values and the assumptions contained in the model. Hence the figures can be varied as required and are in no way intended to be a guarantee of future performance. Although the information is provided in good faith, it is also given on the basis that no person using the information, in whole or in part, shall have any claim against The Property Investment Company Pty Limited -, its servants, employees or consultants.

4 INVESTMENT OPPORTUNITY Lifestyle Working Brookvale Lot 136, 117 Old Pittwater Road, Brookvale NSW SALE DETAIL Price $43, Type Commercial office 71.7sqm Rate / sqm $5,997 Parking 2 spaces Alexion Pharmaceuticals 71.7sqm $32,2 net pa ($449psm) Annual CPI + market at option 4 years Security 6 months gross rental + GST Located in Brookvale adjoining Warringah Mall, Lifestyle Working has changed the face of the workplace environment as we know it. Our expectations of the workplace have changed. With the advent of technology, workers are more mobile and flexible than ever. The modern worker wants fresh air, sunlight, creative spaces, health facilities, and a great community. Designed by renowned firm of architects, Nettleton Tribe, and with landscape architecture by Patio, Lifestyle Working is an innovative concept, which departs from the stereotypical commercial template. This new strata office development encapsulates sustainable principles, the natural environment and the lifestyle of the Northern Beaches. INVESTMENT ANALYSIS Yield 7.5% Depreciation benefits are available Phone Freecall Mobile mauricewatson@bigpond.com Hornsby Warriewood Bella Vista LIFESTYLE WORKING, BROOKVALE Baulkham Hills Parramatta Brookvale Manly

5 INVESTMENT OPPORTUNITY Norwest Business Park Lot 26, Lexington Drive, Bella Vista NSW SALE DETAIL Price $4,778,4 Type Penthouse Whole Floor Office 1,86sqm Rate / sqm $4,4 Parking 43 spaces Metricon Homes 1,86sqm $358,248 net pa ($33psm) 4% fixed annually Market review at options years Security 6 months gross rental + GST Lexington Corporate II is a mixed use project located in the prestigious Norwest Business Park. The project was completed in 28 and Stage 1 occupants include Westpac, ANZ, Fitness First and Sanitarium Health Foods. Stage II occupants already include Real McCoy Snackfoods and Metricon Homes. The development comprises a mix of office, showroom, service retail and warehouse space. Whole floor office tenant with the ability to further subdivide the floor into smaller tenancies, subject to obtaining necessary approvals. Features great natural light and distant mountain views. INVESTMENT ANALYSIS Yield 7.5% Depreciation benefits are available Phone Freecall Mobile mauricewatson@bigpond.com Bella Vista Baulkham Hills Parramatta Hornsby Warriewood Brookvale NORWEST BUSINESS PARK, BELLA VISTA Manly

6 Serviced Apartments at Quest World Square No 2. Cunningham Street, 2 A Worry Free and Low Maintenance Investment for a Self Managed Super Fund Combinaton of Executive One Bedroom and Studio Apartments Close proximity to CBD and Darling Harbour All apartments are individually Strata Titled Fully Furnished to 5 Star Corporate Standard Carspaces available Quest World Square Price Range $42, - $453, Car space POA 5.5% of purchase price 4% per annum Market reviews every 5 years Initial 5 years with 4 x 5 year options (Potential 25 year lease back) Owner Outgoings Council & Water rates approx $1 per annum Sinking fund approx $7 per annum All other annual outgoings paid by tenant (Quest World Square) COMMENTS Commercial Lease on Residential Style Property in much sought after epicentre of. Substantial depreciation benefits and continuity of income with NIL vacancy periods. All the benefits of residential property investment without the hassles. Excellent prospects for Capital Gain in prime location. Phone Mobile Freecall mauricewatson@bigpond.com

7 Serviced Apartments at Best Western Wollongong 1 Gladstone Avenue, Wollongong NSW 25 Ideal passive property investment vehicle for a Self Managed Super Fund in Australia s 9th largest city - Wollongong Combinaton of Executive One Bedroom and Two Bedroom Apartments All apartments are individually Strata Titled Each apartment Fully Furnished to 5 Star Corporate Standard 1 x Carspace included with each purchase price Close proximity to Railways Station, Wollongong s CBD, Hospital, University and Beaches Expansive views across City to Ocean Best Western Wollongong Price Range $35, - $489, Car space included 6.% of purchase price 4% per annum Market reviews every 5 years Initial 5 years with 4 x 5 year options (Potential 25 year lease back) Owner Outgoings Council & Water rates approx $1 per annum Sinking fund approx $5 per annum All other annual outgoings paid by tenant (Best Western Wollongong) COMMENTS Commercial Lease on Residential Style Property in the heart of bustling Wollongong with its Seachange lifestyle. Substantial depreciation benefits and continuity of income with NIL vacancy perods. All the advantages of residential property investment without the associated problems. Excellent location with panoramic views only 1¼ hours drive from. Healthy prospects for Capital Gain due to prime location. Paramatta Phone Mobile Freecall mauricewatson@bigpond.com Campbelltown BEST WESTERN, WOLLONGONG Wollongong

8 STORAGE CENTRE INVESTMENT 7% net + 1.9% depreciation = 8.9% net 384 Eastern Valley Way, Chatswood East NSW Benefit from the booming Self Storage market. This investment is backed by a long term lease to an established and successful operator. Prime drive-thru operation with excellent exposure in a location where land is tightly held. Type Strata Titled Storage Units Available Lots 58 to 62 (5 lots) level 2 in SP Price $575, $4,25 per annum net of all outgoings Yield 7% net return + 1.9% depreciation Annual rent increases of 3% with a market rent review at 5 year option Head lease of years from date of settlement Outgoings All payable by tenant - ie: Land Tax, Council Rates, Strata Levy, Insurance, Electricity, Advertising Depreciation A full depreciation schedule prepared by Washington Brown Quantity Surveyors is available. This will add a further 1.9% to the net return in year 1, based on the diminishing value method Security Deposit 6 months rental bond or bank guarantee Phone Freecall Mobile mauricewatson@bigpond.com COMMENTS Strata Self Storage is a fully leased storage centre that filled up in less than 12 months due to its prime location, 24 hours drive thru access (rare in inner city areas) and competitive rental rates. Your investment is underpinned by a variety of commercial and residential tenants. You can on-sell these strata lots in the future at an increased price, as evidenced by many prior sales within this building. Industrial lots priced from $8, also available. Bella Vista Hornsby Warriewood Baulkham Hills Brookvale EASTERN VALLEY WAY, CHATSWOOD Parramatta Manly