At last, now anyone can be a property investor.

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1 PORTER DAVIS I N V E S T M E N T At last, now anyone can be a property investor. PORTER DAVIS Buy direct from the builder. I N V E 1800 PORTER ( ) S T M E N T

2 PORTER DAVIS I N V E S T M E N T Our goal is to assist you to invest in property in a simple straight forward manner, that even the most novice investor can understand. PORTER DAVIS I N T

3 Introducing Porter Davis Investment. If investing in property has been on your to do list for a while - then Porter Davis Investment can help you make it happen. Porter Davis Investment is here to help everyday mums and dads, and everyone in between, become property investors. Using existing equity in your home, Porter Davis can help you to become a property investor. But we re not a get rich quick scheme promising to turn you into a multimillionaire in three years. We are all about sharing our inside knowledge into the Victorian property market and finding property investments that suit your needs. Porter Davis Investment is just you and Porter Davis, building the right house in the right spot for the right money with all the benefits of dealing direct with the builder. And because you ll be building new you ll have the advantage of an appealing modern home to rent out with a new home warranty for peace of mind. So if the time is right for you to become a property investor, the people at Porter Davis Investment are here to guide you through the process. 3

4 About us Porter Davis isn t just any building company. We started in 1999 with a bunch of guys who wanted to make a difference to how customers were treated. That DNA lives on in our business. It s driven by our founder, expressed in our belief and reflected in our manifesto and comes to life in how we treat you. Let s face it, building a new house whether it s an investment or to live in is a BIG deal. Our promise is that you ll always have someone to talk to if you have any questions along the way.

5 Our Belief We believe new homes are the foundation for great dreams. We stand to respect, protect and nurture those dreams. So here s 7 things we carve in stone. Design Our innovative design range inspired by local and European trends, with over 100 house designs ranging from squares. Finance Construction finance specialists, Choice Home Loans, are on call to make the financing part of building a new house easy and hassle free. Local Our small business focus means your new house is built by your local office, staffed by local people and trades. Hassle Free We provide a simple stage by stage explanation of key milestones through the building journey. Fixed Price > No more to pay. Feel secure with a fixed price HIA building contract. No Surprises Along with a confirmed site start and a guaranteed completion date you ll also have the reassurance of independent quality inspections. Style With our World of Style interior themes, bring international trends into your investment property. Either choose all the details or opt for a pre-selected colour scheme created by our interior designers. >,, Please refer to terms and conditions on back page. 5

6 Investment house ranges Access A perfect foundation Advantage Limited site starts Smart Living A smart investment A house from the Access range is the perfect foundation for your investment future. Start simple, then personalise away with the floorplan changes you want. Standard house plans range from 16-24sq. Everyone deserves a shot at achieving the Great Australian Dream of home ownership. So we are offering five designs at a price that cannot be beat to help you get your foot into the property investment door. Standard house plans range from 20-38sq. Invest in the more affordable, cleverly designed Smart Living range. Inspired by the terrace houses that line Melbourne s inner city streets, this range offers a matchless house and land investment. Standard house plans range from 12-27sq.

7 * Pay on completion SMSF For the investor looking to use a Self Managed Super Fund (SMSF) to invest in property, our Pay on Completion finance solution is a great option. Progress payments via super funds can be problematic, so Pay on Completion is the perfect solution for those wanting to use their superannuation to invest in property. Pay only 5% upfront, no more to pay until your investment property is complete. Available on selected House & Land packages in estates across Melbourne. Pay on Completion also available to non-smsf Buyers. WORLD OF STYLE: BERLIN Image includes examples of upgrade options and items not supplied by Porter Davis, such as furniture.* Please refer to terms and conditions on back page. 7

8 WORLD OF STYLE: IBIZA Buy direct from the builder Buying direct from the builder brings peace of mind, as you can rest assured that building with Porter Davis will give you the best possible outcome. Access to the best property developers and premium estates Select from a great range of turnkey House & Land packages Fixed price contracts Market research Finance products through Choice Home Loans Depreciation schedules available to every customer And there s the comfort of dealing direct with HIA Victoria s Most Professional Builder for 10 consecutive years running and four times winner of HIA Australia s Most Professional Builder. You ll have further comfort knowing that by dealing direct with Porter Davis there are: No mark-ups on the price just because you are an investor (yes, this does happen in the property investment industry!) No external marketing commissions built into the price This and more is all part of the Porter Davis Investment service. Image includes examples of upgrade options and items not supplied by Porter Davis, such as furniture.

9 Simple three step process. 1. Initial consultation 2. Finance qualification 3. Selection of your new investment property How can Porter Davis Investment assist me? By providing the basics you will need to move forward all in the one place By pointing out different returns in different market sectors Assisting you with investment finance options Providing some great tax planning information Constructing your brand new Porter Davis investment property Assisting you with selecting a property manager for your investment Buying direct from the builder and avoid hidden property marketing fees and pit falls While we re not here to give financial advice, we re happy to answer any questions you may have 9

10 Why is property a good investment? Although there are no guarantees, over the longer term, property prices historically have risen. Prices do not rise in a linear fashion though; there are many factors that influence the rate of growth. Population Growth Interest Rates Government Policies Tax Benefits Supply & Demand Employment Rates Consumer Confidence Economic Growth Finance Availability The best time to invest in property is generally, as soon as you can. So we urge you to act now, by expressing your interest with us today. You may delay, but time will not. Benjamin Franklin

11 450, , , , ,000 Residential Price Statistics Victoria 1985 to 2013 House Price & Rent Index CPI Rents House Price 200, , ,000 50, , , CPI CPI Rents Rents House House Price Price 400, , , , , , , , House Median Unit/Apartment Median Vacant House Block Median , , , , , ,000 50,000 50,000 Source: David Collyer at Prosper. A Guide to Property Values 2012 by Victoria s Valuer General. Actual (a) Series A Series B Series C Population Projection Actual Actual (a) (a) Series Series A A Series Series B B Series Series C C million House House Median Median Unit/Apartment Median Median Vacant Vacant House House Block Block Median Median million million $10,000, $1,000, $100,00 $10,000,00 $10,000,00 Source: ABS House Price & Rent Index, Australia, 1987 to Australia s Median House Price Extrapolated to $1,000,00 $1,000, $100,00 $100, $10,00 $10, $1,00 $1, Source: ABS Population Projections, Australia, 2006 to 2101 (cat. no ). Source: REIA median house price data for across Australia and BIS Shrapnel data for median house price in Melbourne between

12 How much income will we need in our retirement years? Many Australians dread thinking about retirement. Most figures state that a cool million dollars is required in order to retire comfortably. This figure excludes the family home, as we will still require a place to live. Let s assume for a moment that you have a million dollars generating a 5% return. That would create an ongoing income stream of $50,000 per annum. So how do you save a million dollars? It s impossible for most people to imagine achieving this by using savings alone. So let s think about this in simple terms. If we purchase an investment property for $500,000 today, then we could expect the market value of that property to grow over time. In fact it would not be unreasonable to see this asset double in just ten years time. This same property would then be worth $1,000,000. This is the simple proven principal of property investment, buy right and hold the asset for the medium to long term. The time to plan for the future is now, when there is still sufficient time to build wealth by allowing your assets to grow. At Porter Davis you will be met with a team of experts that will assist you to fund, purchase and build your investment property and assist you in achieving your dream.

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14 How do I get started if I don t have a deposit saved? The difference between your outstanding mortgage and the current market value of your property is called equity. Under typical circumstances, this equity remains dormant and continues to increase over time. This equity could enable you to leverage into your 1st, 2nd or even 10th investment property. A Choice Home Loans consultant will be able to help determine the equity in your home. Once you have determined the equity in your home, you could be in a position to consider investing in property, without the requirement for a cash contribution. Put simply, you will be releasing the equity you have already built up in your own home. By selecting the right property, this could work to reduce your tax liability, which could assist you in servicing holding costs for the property. Purchase price Equity

15 Do I qualify for finance? Banks favour lending against property as they generally view property as a secure asset that will increase in value over time. You will need a regular income and a good credit history for a lender to consider funding your investment. If you have your own home, or another property, that has sufficient equity you may be able to borrow the entire purchase price of your new investment property. So instead of allowing your equity to remain dormant tap into this value and have it work hard for you. 15

16 Rental income: let your tenants pay the mortgage. Owning an investment property can be so much easier than owning your home. Let s not forget about the new income stream you ll generate from your tenants living in your brand new Porter Davis investment property. This additional income stream can go a long way in covering your holding costs. Certain investment properties can even assist you in reducing the mortgage on your own home faster. Maximise your tax benefits. # The Australian Government has generous concessions specifically designed to assist the Australian property investor, as private investors contribute to the Australian housing requirement for tenants. These tax credits can then be used to reduce your taxable income. Porter Davis does not guarantee a level of rental income. Figures and vacancy fluctuate with market conditions. # Porter Davis makes no warranties or recommendations with regard to tax or negative gearing. The information provided is meant as a guide only. Porter Davis recommends that all clients seek independent legal, tax and financial advice.

17 WORLD OF STYLE: Classic Hamptons Image includes examples of upgrade options and items not supplied by Porter Davis, such as furniture. 17

18 Investment property example^ Purchase price including costs $349,285 Income Rental Income $17,680 Tax Credits^ $5,241 Total Income $22,921 Expenses Interest Payments $18,393 Rental Expenses^^ $3,877 Total Expenses $22,270 Cash Flow Positive $651 p.a. Assumptions Interest rate 5.2% Comparison rate 5.2% Interest only loan Income $75,000 pa Rent $340 pw Loan amount $353,714 (purchase price plus fees) ^ Figures are meant as an illustration only. Individual circumstances can vary greatly. This is not meant as advice or a recommendation. Porter Davis recommends that all clients seek independent legal, tax and financial advice. ^^ Rental expenses defined as property management fees, insurance, council rates and letting fees. Individual circumstances may vary. Figures meant as an illustration only. Image includes examples of upgrade options and it

19 Image includes examples of upgrade options and items not supplied by Porter Davis, such as furniture. Who pays my mortgage?^ Tenant Taxman WORLD OF STYLE: ems not supplied by Porter Davis, such as furniture. French industrial 19

20 Build with confidence. Build with the Housing Industry s Most Professional Builder. HIA Four times winner of the HIA s Most Professional Australian Builder Award. Ten times winner of the HIA s Most Professional Victorian Builder Award Proud Supporter > Site costs on untitled land are subject to second soil test and survey to confirm fill and fall levels as per developer s original engineering specifications for all quotes other than fixed price house and land packages. * Individual financial circumstances may vary and formal lending institution approval is required. Please speak with your Choice Home Loans consultant to discuss your individual circumstances. Start subject to land title & finance availability. 18 weeks based on single storey Access & Smart Living Construction in Porter Davis Build Zones 1, 2 and weeks based on double storey Access & Smart Living Construction in Porter Davis Build Zones 1, 2 and 5. Access & Smart Living Construction not available in Porter Davis Build Zone weeks based on single storey Lifestyle construction in Porter Davis Build Zones 1, 2, 3 and weeks based on double storey Lifestyle construction in Porter Davis Build Zones 1, 2, 3 and weeks based on single storey Prestige construction in Porter Davis Build Zones 1, 2, 3 and weeks based on double storey Prestige construction in Porter Davis Build Zones 1, 2, 3 and weeks based on single storey Lifestyle or Prestige construction in Porter Davis Build Zone weeks based on double storey Lifestyle or Prestige construction in Porter Davis Build Zone 4. All build times include variations. Rent relief up to a maximum $ per week if guaranteed completion time not met. Photographs for illustration purposes only and can include examples of upgrade items. Porter Davis Homes reserves the right to withdraw or change pricing and promotion without notice. Effective