Investment Destination Australia. South East Queensland

Transcription

1 Investment Destination Australia South East Queensland

2 Your new investment destination South East Queensland Australia Surrounded by nature A leading lifestyle choice Perfect balance between work, rest, learn and play Strong links with China and Asia - business, education, tourism and migration

3 Endless benefits include... Safe and secure lifestyle World-class universities and schools Sporting venues and activities A diverse range of culinary delights from local producers Join our mailing list for current releases and property updates

4 Brisbane and South East Queensland in focus Over 20,000 Chinese migrants moving to Brisbane each year Brisbane increasingly the number one choice over Sydney and Melbourne 30 local Chinese community associations

5 Mandarin is now the second most spoken language in Brisbane households More and more Chinese families are choosing Brisbane as the place to study Over 25% of foreign students at Queensland Universities are Chinese Nationals Brisbane is hugely welcoming of Chinese Nationals it s not over developed and not under developed (Johson Chen VP of QLD-China Forum) Increasing interest from Chinese Nationals in Brisbane as a place to live, do business and study (Johson Chen) Join our mailing list for current releases and property updates

6 A diverse and rich nation... The world s 12th largest economy doing business globally Cairns Sunshine Coast Gold Coast Australia s Population Sunshine Coast 0.29m 1.8% Brisbane 2.17m 1.7% Gold Coast 0.62m 1.6% Sydney 4.45m 1.8% Canberra 0.42m 0.9% Melbourne 4.26m 2.2% Hobart 0.2m 0.9% Adelaide 1.27m 1.0% Perth 1.95m 2.3% Darwin 0.13m 1.7% > > > > > > > > > > (Source: ABS 31 March, 2015) Snapshot 2015 Population 23.8m Growth Rate 1.7% Net Overseas Migration 212,000 GDP Growth 2.5% GNI / Capita $64,400 (USD) (Source: ABS, OECD June 2015)

7 Well connected with Asia Asian property investment increased by 93% Export Trade Partners 1. China $102bn 2. Japan $50bn 3. Korea $22bn (Source: DFAT June 2015) Free trade agreements signed to support regional trade Direct flights to all major Asian cities Established shipping connections Positive and supportive government policy to stimulate trade Join our mailing list for current releases and property updates

8 Australia... all about growth Fastest growing population of leading developed nations 20+ years of continuous economic growth Almost 3x OECD average Highest growth in Asia Pacific Region Over 20 years of continuous economic growth Population Growth Rates 2013/14 (Source: ABS) AUSTRALIA CANADA CHINA UK USA 1.8% 1.2% 0.5% 0.6% 0.7% (Source: World Bank)

9 A leading economy with low investment risk Australia has outperformed OECD nations since the Global Financial Crisis and did not fall into a recessionary cycle as did most Western economies. The Australian financial sector is highly regarded as being one of the world s most stable and, combined with the housing market, forms a pillar in the economy. Australia has been a star performer in economic terms with the combination of a strong domestic market and strong demand for exports. GDP Growth 2014/15 Australia 2.5% OECD Average 1.9% China 7.7% EU 0.6% USA 2.2% Canada 2.0% UK 1.7% (Source: ABS World Bank) Exports continue to grow Total exports up 10.4% Mining exports up 11% Strong employment 71.7% of workforce years is actively employed Resilient to economic shocks IMD World Bank ranked Australia the 5th most resilient economy Join our mailing list for current releases and property updates

10 Australian residential property... Low risk and attractive returns Low risk Freehold title Sustainable market Controlled building regulations High quality projects and housing Best long-term property market performance Attractive returns Strong yields Long-term housing demand exceeds supply Property values rising

11 Growing population drives demand supply shortfall Demand exceeds supply Long term supply not meeting demand for new housing Development slow to increase supply Prices are rising Join our mailing list for current releases and property updates

12 Property market outlook... Where to invest for the best returns and growth Median price forecast (Source: QBE LMI Report March 2015) Cycle/trend Sydney 7.4% 5.2% (3.3%) 9.0% Reaching Peak Melbourne 3.3% 2.2% (0.7%) 4.9% Peak > Decline Brisbane 7.4% 7.5% 1.3% 17.0% Rising Market Perth 0.9% 0.0% (2.8%) (1.9%) Decline Gold Coast 7.0% 5.0% 2.0% 15% Rising Market

13 Investment insights... identifying opportunity SYDNEY MELBOURNE BRISBANE GOLD COAST Apartment with good CBD proximity Chatswood $900,000 Docklands $500,000 Toowong $465,000 Southport $309,000 Cost/sqm $12,300 $7,800 $5,900 $4,800 Typical yield 3.5% 4.1% 5.1% 5.5% House and land close to key infrastructure within 1 hour of CBD Pennant Hills $1,395,000 Point Cook $580,000 Springfield $414,500 Pimpama $435,500 Cost/sqm $6,650 $2,750 $2,050 $2,120 Typical yield 2.8% 3.5% 5.1% 5.1% Property Clock Join our mailing list for current releases and property updates

14 South East Queensland will outperform other capital cities Contributing factors... Population growth rate forecast to increase to 2.1% - over 6 million people by 2050 Brisbane/Gold Coast market demand exceeds supply Melbourne - supply exceeds demand Sydney balanced but supply will exceed demand Net interstate migration and investment flow rising into Brisbane and Gold Coast as families seek more affordable living and investors discover better returns and better growth opportunity Net Interstate Migration Increasing Higher Yields

15 Key indicators point to South East Queensland as optimum investment destination 1. Affordability Attracts residents and investors 2. Shortfall of Housing Reduces oversupply risk 3. Population Growth Over 1,000 new residents per week 4. Superior Investment Returns Better investment from the start with higher yields than Sydney and Melbourne 5. Infrastructure Investment Drives economic growth Join our mailing list for current releases and property updates

16 Investment destination Queensland, Australia The Queensland Government has defined the economic pillars that will drive growth Tourism Resources Agriculture Construction Education Wealth Management Over 75% of Queensland s exports are to Asia As Asian economies grow and the buying power of the middle classes emerges, demand for everything from Queensland will increase considerably driving the economy and building the economic strength of the State. Investing in Queensland property means that you are investing in a strong economy that is set to become even stronger. Queensland, the Sunshine State, is an economic powerhouse with a long term population and economic growth leading Australia. If Australia is seen as a star performing economy, then Queensland is the brightest of stars. The economic leadership of Queensland drives jobs growth and attracts more people. With a growing population, demand for housing is constantly rising. With a diverse economic base, Queensland has a high level of resilience to fluctuations in economic cycles. According to the highly regarded Delloittes Consulting Queensland has a more diverse portfolio than any other growth leader in Australia.

17 Brisbane Australia s New World City Centre of booming South East Queensland region with population growth to rise to 2.1% - leading growth region in Australia Over $130 billion in new infrastructure investment to support growth Pro-active Government focus on developing the economy and broadening economic mix with an emphasis on smart industries and education Brisbane is Australia s best-connected city with Asia Clear focus on Asia business, investment, tourism, education, migration Join our mailing list for current releases and property updates

18 Over $130 billion in major projects being invested Home to over 6 million people by 2050 Rising economic and political importance Sunshine Coast Medical Precinct 2. New Redcliffe rail link 3. North Lakes master planned community 4. Gateway Arterial upgrade 5. Brisbane Airport new runway and major expansion 6. Brisbane Airport Economic Zone / Port of Brisbane single largest employment site in Queensland 7. New major road and tunnel infrastructure 8. New Brisbane casino 9. RAAF Amberley expansion 10. Ipswich Motorway upgrade 11. Springfield new commercial hub, Mater Hospital, Dusit Thani Resort 12. Coomera Town Centre 13. Gold Coast Marine Precinct 14. M1 upgrades 15. Extension of Gold Coast rail link 16. Stage 2 Gold Coast Light Rail 17. Southport Spit redevelopment hotels, retail, residential 18. Commonwealth Games infrastructure 19. Carrara Stadium expansion 20. Gold Coast University Hospital / New Allamanda Private Hospital 21. Griffith University expansion 22. Gold Coast Cruise Port 23. The Jewel 6 star luxury apartments 24. Pacific Fair expansion 25. Jupiters Casino upgrade and expansion 26. Gold Coast Airport expansion

19 Investment destination South East Queensland It is all about the investment Your property is an investment and our aim is to help you realise the best investment returns possible: High yields Driven by market demand and the desirability of the property if more people choose to live there, your rental returns will be higher. It is important to match the property to the prevailing demand of the local market to achieve optimum results. Superior growth Which locations will outperform the overall market? Identifying growth drivers such as infrastructure investment and demographic shifts enables us to find projects that will deliver superior outcomes. Demand Supply balance This is critical for both yield and growth performance. Over-supplied markets will underperform over the long-term so we look for projects where supply is limited and demand is strong the key to better financial performance. Meridien Group researches and analyses the market when selecting projects. This ensures that your property delivers the best possible investment returns. Our Hot Spot selections for South East Queensland provide an opportunity for our clients to invest in locations that will provide the best financial outcomes. So, even if the overall South East Queensland market is poised for growth, these projects will deliver results that are above the market average = your investment advantage. Join our mailing list for current releases and property updates

20 Investment destination South East Queensland, Australia Toowong Brisbane Highly sought-after location for affluent, educated professionals and high-income earners Singles and couples plus young, professional families are driving demand for larger 1 and 2 bedroom apartments Demand for new, luxury apartments is high and commands a premium of up to 43% Supply is very restricted with just 4% of new apartments in Brisbane located in the Inner West precinct Everything is right here village lifestyle of cafes, restaurants, shopping, services with easy connections to the city, schools, universities and beyond Easy place to live and work 14,945 people living here and 37,000 work here, with both set to increase Great place to live safe, clean, close to parks, river, bush lands plus all city amenities Toowong will outperform the SEQ market and Illumina - the landmark project in Toowong - will outperform the local area.

21 Investment destination South East Queensland, Australia Springfield Western Brisbane Visionary, world class, internationally award-winning Master Planned community Mix of housing plus integrated business, education, health, retail, services and essential infrastructure By 2030 Springfield will be home to over 105,000 people enjoying family and community living at its best Safe, green and clean - 30% of land dedicated to absolute green space Springfield is a mini city - its CBD will be bigger than Brisbane s - with everything you need, yet it s well connected to everything else New infrastructure supports huge growth rail link, fibre optics Centenary Highway, Dusit Thani over $85bn invested by completion Affordable living options for families - property values outperform the broader market and demand for quality homes is high Rental yields are well above average for Western Brisbane More and more families are choosing to live in Springfield, one of Australia s fastest growing areas. Join our mailing list for current releases and property updates

22 Investment destination South East Queensland, Australia Pimpama North Gold Coast Fastest growing area in Queensland up 17% in 2014 Families love Pimpama s high quality homes, new schools, top colleges, sports and leisure facilities, plus close proximity to employment hubs Massive infrastructure projects support regional growth and fuel higher property values - Coomera Town Centre ($1bn), M1 motorway upgrade ($74m), Marine Precinct extension ($120m), Commonwealth Games 2018 ($2bn) New Pimpama train station planned for 0000 Demand for high-quality homes out-strips supply with rental vacancy rates below 2% and supporting strong yields Current land-and-house developments are close to the burgeoning Coomera Town Centre buying now will ensure above average capital growth Now is the best time to buy in Pimpama, the destination of choice for North Gold Coast families.

23 Investment destination South East Queensland, Australia Hope Island North Gold Coast Affordable, exclusive, luxury island living Surrounded by world-famous integrated residential resorts Sanctuary Cove and Hope Island Resort Popular with families and couples attracted to by the relaxed, resort lifestyle Three leading golf courses, sports recreation clubs, boating, excellent schools, waterfront restaurants, cafes and shopping Everything is right here, plus fast, easy connections to Brisbane, Coomera Town Centre, theme parks and commercial precincts High demand for superior-quality homes and apartments with vacancy rates below 2% Development sites are tightly held restricting supply and increasing demand Hope Island s recent property price rises will ensure strong capital growth into the future. Join our mailing list for current releases and property updates

24 Your South East Queensland investment options Lot 11, Bellbird Meadows, Bellbird Park, 4300 HOUSE & LAND DUAL-LIVING Total Package Price VILLA/TOWNHOUSE $549,210 LUXURY APARTMENTS HOUSE DETAILS MAGNETIC Total Area sqm Total Squares Price range $400,000 - $800,000 $500,000 - $600,000 House Length $375,000 - $500, m House Width 12.5m House Price $296,210 LAND DETAILS $399,000 - $1.5M Typical yield % % % % Est. Registration Land Area Est. Build Time Est. Rental 3rd Q sqm 16 Weeks -4B/2B/1C $380-$420/week -1B/1B/1C $280-$320/week Est. Rates $1,900/annum Hot spot locations Pimpama Springfield Coming Soon Rochedale North Lakes Springfield Coming Soon Gold Coast Pimpama Coming Soon North Lakes Red Hill Land Price $253,000 TURN KEY HOUSE AND LAND PACKAGE INCLUDES - Complete landscaping for QLD conditions - Sealed Driveway - Stainless Steal Appliances - 6 year structual guarantee - Roller blinds to all windows - Connections to all services Toowong Hope Island Hamilton - Antenna - Clothesline - Letter box - Security Screens There is no Binding agreement until GW Enterprises PTY LTD trading GW Homes has signed a Master Builders contract on terms satisfactory to both you and GW Enterprises PTY LTD tradi ng GW Homes. Prices are based on availability and price of land. All house and land packages are subject to land developers final approval. Render is not standard inclusion within some estates and this is an optional upgrade upon a variation request. Illustrations and photography are for presentation purposes and should be regarded as indicative representations only.

25 - 6 year structua Smart Options Investment Advantages The Australian dream a home of your own drives long-term demand You own all of the land the primary growth driver Land is a scarce asset you cannot make any more No body corporate fees Higher net investment returns Save on stamp duty Fast delivery complete and ready to start making money within 6 months Lot 11, Bellbird Meadows, Bellbird Park, 4300 Free-standing homes offer a unique mix of investment advantages. Where demand from families is predominant, Total Package Price $549,210 homes and dual-living homes meet the needs of the market HOUSE MAG Total Area Total Squares House & Land Free-standing homes Designed for family living High-end finishes Full turn-key nothing more to spend Outdoor living space Dual Living 2 properties in one: 3 bedroom family home 1 bedroom unit 2 streams of rental income Meet market demand No extra costs High gross returns = high net returns High end finishes Full turn-key nothing more to spend House Length House Width House Price LAND D Est. Registratio Land Area Est. Build Time Est. Rental -4B/2B/1C -1B/1B/1C Est. Rates Land Price TURN KEY HOUSE AND PACKAGE IN - Complete land conditions - Sealed Drivew Join our mailing list for current releases and property updates - Stainless Steal

26 Your investment is ready to start making money Inclusions House Dual Villa/ Luxury & Land Living Townhouse Apartment Full landscaping Blinds/Screens Air Conditioning Dishwasher Carpet/Tiles Letterbox/Clothesline Independent Handover (inspection report) N/A Clothes dryer

27 The numbers... A simplified guide to how your investment works When you buy When you rent When you sell - 10 year investment program House Apartment Contract price $500,000 $500,000 Government fees $7,735 $17,279 Legal Costs $2,000 $2,000 Total Cost $509,735 $519,279 Typical Bank Loan $350,000 70% - interest only Client contribution $159,735 $169,279 RMB $750,000 $979,000 House Apartment (per week) (per week) Gross rent $500 $500 Property 8% ($40) ($40) Body Corporate N/A ($60) Council Rates ($50) ($40) Insurance ($25) ($10) Interest on 4.5% ($302) ($302) Net Cash-flow $83 $48 Annual Summary Net Cash-flow $4,316 $2,496 Depreciation ($10,000) ($15,000) House Apartment Sale price $880,000 $880,000 Selling costs ($25,000) ($25,000) Legal costs ($2,000) ($2,000) Bank Loan ($350,000) ($350,000) Net Proceeds $503,000 $503,000 Net Sale Income $853,000 $853,000 Total Initial Cost ($509,735) ($519,279) Net Capital Growth $343,265 $333,721 Capital Gains Offsets ($50,000) ($100,000) Taxable Income $293,265 $273,721 Capital Gains Tax ($116,000) ($107,000) Net Income ($5,684) ($12,504) Net Return to Investor $177,265 $166,721 No income tax is due because the depreciation creates a loss Losses are accrued as an offset against future capital gains tax Total Investment Returns House Apartment Net Cash-flow 50,000 $30,000 Net Returns from Sale $177,265 $166,721 (after CGT) Total Net Returns After-Tax $227,265 $196,721 Average Returns P.A. $22,726 $19,672 Average Returns 14.2% 11.6% on Invested Funds P.A. Note: Estimates only and not guaranteed. Based on market growth rate of 6.5% average and current tax rates for non-residents. See your Meridien consultant for a detailed investment profile. Join our mailing list for current releases and property updates

28 What you need to know... Freehold Titles Australian property laws are comprehensive and protect the owner with freehold titles not leasehold. This means that you own the property in perpetuity for now and your future generations. The Regulations for Overseas Buyers In comparison to many countries, Australia has an open policy for non-residents to purchase property for investment. Who can buy? Individuals and non-resident companies and trusts are eligible under the FIRB rules. How is the investment approved? Non-residents require FIRB (Foreign Investment Review Board) approval for their purchase. The FIRB have regulations over what non-residents can buy. What can you buy? Newly constructed properties Off the plan property Vacant land on the basis that construction will be commenced within 2 years Development sites that must have construction commenced within 2 years What you cannot buy Established homes New properties that have been occupied for more than 12 months Once the property transaction is complete, your FIRB approval stands in perpetuity. It does not mean that you can sell the property to another overseas buyer as this would negate the regulations. It is important to ensure that your investment complies with Australian regulations. Penalties for breaching regulations can be considerable. From December 1, 2015 an application fee of AUD$5,000 will be charged for all FIRB applications below AUD$1.0 million with a scale of fees above this value. Finance for Overseas Buyers Australia s leading banks are well represented across Asia and offer attractive finance packages for clients to invest in Australian property. As a general rule, non-residents have a maximum borrowing limit (loan to valuation ratio LVR) of 70% of the property value. The property is purchased with Australian currency but banks will provide finance in your local currency or a mix of your local currency and AUD. Banks register a mortgage on the property title and this is released when the loan is cleared.

29 Taxation Investors must obtain an Australian Tax File Number and submit tax returns each year. Australia s financial year runs from July 1 to June 30 and tax returns are generally submitted within 3 months of the end of the financial year. Your taxable income is net of your expenses which includes depreciation. In most cases, taking into account depreciation will generate a negative net income result and provide you with taxation benefits to offset capital gains tax in the future. Australia has bi-lateral taxation agreements with many nations to avoid double taxation and to ease processes. Capital Gains Tax Australian taxation on capital gains is assessed on the whole of the capital gain realised less the carried forward losses from the prior years. This offset policy reduces the capital gains tax liability in favour of the investor. Professional Property Management Your investment property will be professionally managed by a licenced real estate manager. Every aspect of managing the property is done for you; Finding and screening tenants Lease preparation Rent collection Regular inspections Payment of rates and body corporate fees (where applicable) You can be confident that your best interests are always being cared for by the property managers that Meriden Group selects for you. Contracts Contracts are prepared by the vendor and your appointed solicitor will work on your behalf to ensure that everything is in order and to protect your interests. Off the Plan Contracts Apartments, Villas and Townhouses These are a single contract with an initial deposit of 10% to 20% and then the balance on completion and titles being issued. The deposit is held in trust and in most cases, the client receives interest on the deposit amount. Once the full deposit is paid, there are no more payments to be made until completion. Split Contracts House and Land, Dual Living There are separate contracts for the land and for construction. The buyer settles the land and has a separate contract for the construction of the home. Progress payments are made to the builder during construction. Join our mailing list for current releases and property updates

30 Meridien Group is your Australian investment partner Complete Investment Program Australian residential property will provide you with a secure and attractive investment for now and future generations. At Meridien Group, our commitment is to provide you with a complete investment program and to build a long-term business partnership based on trust and proven performance. The complete services offer is just start it is the client relationship that we value the most and build our reputation on. Meridien Group is a specialist investment property consultancy with an experienced team in Australia and across Asia. The combination of local experience and knowledge of Australian property - combined with the local knowledge and understanding that our agents have of what Asian clients are looking for - provides you with the best possible service. Everything we do is based on research. Our goal is to deliver investment performance for our clients that is well above average, and to achieve this it is imperative we have market insights and access to the best projects. Our extensive network provides us with access to projects, developers and builders that can deliver property that will match the investment goals that we set. In many cases, we find niche and boutique projects that will deliver above-average performance. Client confidence is important to us and the key to our success. If your investment is achieving optimum results, then you will want to expand your investment program and will confidently introduce your family and friends so that we can help them to realise their investment goals. The property is the key to the investment the investment performance is what we focus on. Meridien Group provides clients with a complete investment program an enduring relationship that extends well beyond a sale. Our focus is on working with clients to build an investment program that will achieve the financial goals of our valued clients. To achieve this, we have a full spectrum of services all from your investment partner. Market Research Project Analysis and Selection Negotiation Contract Preparation and Coordination FIRB approval Legal Process Finance Taxation and Accounting Bank Accounts Project Supervision Handover Inspection Sourcing and Managing Property Managers Property Sale Our services continue beyond the start and will support you at every point of the investment program.

31 A professional team to support you at every step David Brown (B.Comm) Managing Director Over 30 years of professional experience in business development across retail and property in Australia, UK and Asia. David is committed to client service and relationships and is highly respected by clients and business partners for professional standards and integrity. Bob Cooper Project Manager With over 40 years of residential property experience in South East Queensland, Bob has developed relationships with leading developers and builders. This ensures that we have access to the best projects and the best builders so that clients can be 100% confident of their investment outcome and the quality of the properties. Joanna Preston Administration Manager Smart, process driven and committed to client support where detail is critical. Joanna manages the client process from start to end and then ongoing so that clients can be confident that nothing is missed and everything is taken care of. David Kerr Lawyers Professional support and independent advice for your property purchase. A fixed fee of AUD$1200 has been negotiated for conveyancing services. David Kerr has worked with David Brown of Meridien Group for over 20 years. Chinese language capability. AAA Business Accountants A full service for Meridien Group clients from setting up tax file numbers to compliance and annual tax returns. A comprehensive client management support program has been established to manage every step for just AUD $55 per month including processing of annual returns. Chinese language capability. Youly Home Loans Specialist finance brokers for overseas buyers. Michelle Peng has extensive experience in property finance and is fully accredited. Youly Home Loans have access to all major banks and can provide a finance package specific to each client s needs. Agents and Affiliates Across Asia Hong Kong GW Invest Total Consultancy Malaysia Rock Realty JT Properties Singapore Premiere Realty Join our mailing list for current releases and property updates

32 AUSTRALIA M: PO Box 436 Sanctuary Cove Queensland 4212 Australia david@meridiengroup.com.au Agents and Affiliates in China, Hong Kong, Malaysia, Singapore