ACQUISITION & CONSTRUCTION LOANS. Helping you build a strong business foundation

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ACQUISITION & CONSTRUCTION LOANS Helping you build a strong business foundation

Attention builders, developers and property promoters ü Do you want to grow your business without stressing your balance sheet? ü Would you like to diversify your client base by expanding into the rapidly growing SMSF market? ü Do you want to raise your business profile and gain a market advantage over your competitors? ü Are you seeking an affordable way to finance your land acquisition and freestanding dwelling construction costs? Acquisition and Construction (ACL) Loans can help. Ame- x Mortgage Management provides affordable and flexible acquisition and construction finance for qualifying builders, developers and property promoters. ACL Loans enable you to acquire land and construct homes (houses and duplexes) where the end purchaser is a Self Managed Super Fund (SMSF). * Terms and Conditions Apply

What are ACL Loans? ü ACL Loans finance the purchase of developed allotments on established premium residential estates. ü ACL Loans enable you to acquire land and construct dwellings (including duplexes) for sale to Self Managed Super Funds. ü ACL Loans are available in metro and major regional areas of New South Wales, Victoria and Queensland. Other locations are considered on a case- by- case basis. ü ACL Loans are exclusive to Ame- x Mortgage Management and are established specifically for builders, developers and property promoters.

How ACL Loans Help You Investment in residential property through Self Managed Super Funds rose by 11% over the past year. According to ASIC, in March 2015 the value of residential property investments through SMSFs was $21.8 billion, up from $19.5 billion in March 2014. Like many developers, you want to expand into this rapidly growing sector by offering house and land packages to Self Managed Super Funds. But your growth potential has been constrained by limited capital, because you ve typically needed to fund the land acquisition and construction costs internally. Developers and builders can obtain finance when developing units, flats or townhouses. But where the development comprises discrete houses or duplexes (highly sought by SMSFs), the developer or builder must carry the cost of land acquisition and construction until the SMSF buyer can settle on the completed property. Land developers often put the land to builders and promoters, with the builder or promoter being forced to arrange short- term finance at high interest rates on an ad- hoc basis to avoid losing the option. The resulting balance sheet strain precludes most organisations from seriously entering this lucrative market. Furthermore, under existing legislation, an SMSF can only borrow to purchase completed property. This leads to unsatisfied demand from SMSFs, since neither the SMSF nor the developer can easily finance the development. ACL Loans fill this gap by offering affordable finance to qualifying applicants for a relatively short period, in order to settle selected blocks of land and immediately commence construction. This enables our clients to confidently forecast their sales and construction pipeline up to twelve months in advance.

Benefits ü Expand your business into the rapidly growing SMSF market. ü Gain an advantage over your competitors who don t target this market. ü Expand your business without assuming new balance sheet liabilities. ü Increase your sales to investors. ü Raise your business profile and brand presence. ü Boost sales volumes to fund an expansion of your marketing campaign. ü Address a wider market than possible with your current suite of products. ü Diversify your client stream, reducing exposure to a downturn in one sector. ü Partner with larger and more profitable players as your business expands. ü Up- sell SMSF investment construction options to existing individual clients.

How the process works A builder, developer or promoter markets to prospective clients who are seeking superior returns from property investment via their Self Managed Superannuation Fund. Prospective clients may have an existing SMSF or will establish a qualifying SMSF. The builder or promoter will enter into a number of put and call option agreements with a property developer over blocks of land, for an agreed period and fee. The builder, developer or promoter will then market those blocks and the construction designs to the SMSF end- buyer. During the option period, the builder, developer or promoter attempts to sell the lot as a house and land package to a client with an SMSF as the end- buyer. When the loan is drawn to settle the land acquisition, the property will be subject to a Contract of Sale to a qualified buyer. The buyer may be the trustee of an SMSF through a Bare Trust, Security Custodian Trust, or Instalment Warrant Trust. There will be a separate contract with a builder to construct the dwelling. When the funds are advanced to the builder, developer or promoter to settle the land, the SMSF end- buyer must have sufficient finance approval to enable the trustee to settle the purchase of the completed house and land package. Ame- x Mortgage Management can assist with this process as required.

How the process works (continued) Next, the builder, developer or promoter: 1. Secures commitment from the SMSF to purchase the completed house and land package. 2. Helps with obtaining all development and building approvals from the local authority. 3. Enters into a contract with a qualifying builder to construct the dwelling. 4. Helps the SMSF to organise finance to settle the purchase of the completed house and land package. 5. Secures agreement from the SMSF trustee to release the deposit towards the settlement of the land. When the above tasks are completed, the builder, developer or promoter applies for an ACL Loan. The ACL Loan progressively funds the land acquisition from the developer, as well as the construction of the dwelling. Settlement of the completed house and land package will occur within the agreed loan term.

Optional End- Buyer Services Our attractive end- buyer services provide additional income and product differentiation, at no extra cost to the builder or promoter. ü Competitive End- Buyer Finance We can arrange convenient SMSF loans for end- buyers ü Positive Cash Flow Programs Boost cash flow and ROI by transforming negative gearing into positive gearing ü Mortgage Reduction Slash mortgage terms by up to 50% using Mortgage Cutter strategies YOUR BENEFITS ü Seamless finance ü Simplicity ü Additional income ü Product differentiation END- BUYER BENEFITS ü Competitive finance ü Smart mortgage reduction ü Positive gearing ü Lower overall cost Ask us how these services can benefit your business today.