Developers/Builders Have an EDGE over your competitors with the EDGE 2 or 5 Year Rental Income Guarantee

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1 INTRODUCING THE EDGE 2 or 5 Year Independent Rental Income Guarantee Developers/Builders Have an EDGE over your competitors with the EDGE 2 or 5 Year Rental Income Guarantee V10 Developer Builder Edition 1

2 Benefits of the 2 or 5 Year Rental Income Guarantee (RIG) Developers/Builders understand that the efficient use of Capital/Finance is critical to the commercial success of any project. Delays increase costs and reduce profits. The Edge Rental Income Guarantee is designed to act as a sales accelerator, delivering peace of mind to investing landlords by providing rental income surety for 2 or 5 years. The Edge Rental Income Guarantee offers a 2 or 5 year plan to minimise the financial risks of residential property investment by guaranteeing your Investor s rental income while the property is untenanted. It is TRANSFERABLE (subject to approval by the Guarantor) in the event that the landlord decides to sell a property that is covered by an Edge Rental Income Guarantee. It is UNIQUE - there is not another INDEPENDENT Rental Income Guarantee on offer providing rental income protection between tenancies. The Guarantee is structured as a supplement to the Investor s contract with an approved licensed Property Manager. It is highly attractive to Financial Advisers and Accountants advising Investors on how to minimise their rental income risk position. Excellent value at 0.5% of Property Purchase Price with a minimum of $1,950 plus GST - ONCE ONLY FEE covering 5 years OR 0.25% of Property Purchase Price with a minimum of $ plus GST covering 2 years. The RIG is payable by $90.00 plus GST reservation fee, with the balance payable on settlement of the property sale. The Developer/Builder adds the RIG to the purchase price of the property on offer. Benefits for you as Developer/Builder include An enhancement to your property marketing strategy which acts a sales accelerator No adverse effect on property valuation. No contingent balance sheet liability. No responsibility for the administration of the RIG. Minimal early RIG reservation fee of $90.00 plus GST (after pre approval). Payment of balance not due until property settlement. Property product differentiation with the RIG in an increasingly competitive market. No administration of the RIG by the Developer/Builder. All claims are processed via the internet and/or through the approved Property Manager. Edge offers project/precinct exclusivity (subject to numbers) thereby further enhancing the marketing exclusivity proposition for our B2B partners. 2

3 How to Participate Participation commences with an application in respect of a particular project. Edge will formally assess the suitability of the project and respond within 5 days. On receiving a positive response, the developer/builder: enters into the Rental Guarantee Supply Agreement: o This Agreement reserves a specified number of RIG s for use in sales of the properties in the project; pays a reservation fee of $90.00 plus GST for each RIG reserved, which is included as part of the total RIG fee: o Unused Rental Guarantees may be transferred to any subsequent approved development; notifies Edge when a contract of sale has been entered into, including information regarding the purchaser, proposed settlement details, proposed property manager (if known); notifies the settlement agent when settlement of the property sale is imminent. The Developer/Builder DOES NOT have any ongoing involvement or liability thereafter. If the developer/builder then wishes to proceed, the developer/builder and Edge enter into the Rental Guarantee Supply Agreement. This Agreement reserves a specified number of Rental Guarantees for use in sales of the properties. The Developer/Builder DOES NOT have any ongoing involvement or liability to the Investor. A reservation fee of $90.00 plus GST applies in respect of each Rental Guarantee reserved. Unused Rental Guarantees may be transferred to any subsequent approved development subject to approval. EDGE DOES NOT PROVIDE Building/Contents and Landlord Protection Insurances The standard protections typically provided by industry established suppliers such as Allianz, QBE, Terry Sheer etc are STILL REQUIRED to be in place by EDGE. These typically operate when a tenant is already in place. Landlords are still exposed to the risk of a tenant vacancy and the corresponding loss of rental income. Edge is the specialist RIG provider providing the landlord with a guarantee for the rent until another tenant can be found by the Property Manager. EXAMPLE Cost pw (approx.) Protects Claim Value Peace of Mind Build/Contents Ins $20.00 Fire, Theft, Flood, Damage Market/Agreed YES Landlord Protection Edge 2 or 5 year Guarantee $6.00 Loss of Rent due to tenant default $8.25 Loss of Rent during tenant vacancies A limited period of time and policy defined UNLIMITED up to 2 or 5 years Partial YES 3

4 What does the Rental Guarantee cover? Eligible Properties Residential properties in the long-term rental market, with rents of up to $800 per week being considered. All properties are subject to prior approval by Edge. The Rental Guarantee The Edge Rental Income Guarantee forms an attachment to the Property Management Agreement between the Landlord and the Property Manager. The Rental Guarantee, which relates to a single property, sets out the terms and conditions of making claims and obtaining payment if a vacancy occurs. The cost of the 5 Year Rental Guarantee is 0.5% of Property Purchase Price with a minimum of $1,950 plus GST, payable by way of $90.00 (plus GST) Deposit plus balance on Settlement of the Property. The cost of the 2 Year Rental Guarantee is 0.25% of Property Purchase Price with a minimum of $975 plus GST, payable by way of $90.00 (plus GST) Deposit plus balance on Settlement of the Property The Commencement Date The 2 or 5 year Rental Income Guarantee period commences on the date the Rental Guarantee is attached to the Property Management Agreement or, if the property is untenanted at that time, on the first day a new tenancy commences. Terms used Vacancy Days are days for which no rent is receivable by the Landlord, either from a tenant or from the mandatory Landlord insurance policy claim, and for which the property is available for tenancy (i.e. not undergoing repairs and maintenance). Fair Market Rent from time to time is the amount paid pursuant to the most recent tenancy agreement in respect of a property, or, after 28 Vacancy Days have elapsed, 90% of that amount, reducing by a further 5% for each additional 14 Vacancy Days. Landlord s Vacancy Day Obligation The Edge Rental Guarantee applies after a reasonable number of Vacancy Days has elapsed. The reasonable number of Vacancy Days which are the financial responsibility of the Landlord, is calculated cumulatively as 14 days for each vacancy event. Edge s Vacancy Day Claim Obligations At any time, if during the 2 or 5 year Rental Guarantee period, the number of accumulated Vacancy Days exceeds the Landlord s Vacancy Day Obligation, and having received a claim on behalf of the Landlord, Edge will pay the Landlord, through the Property Manager, 90% of the Fair Market Rent for each eligible Vacancy Day. 4

5 About EDGE (Australia) Pty Ltd Edge (Australia) Pty Ltd was established specifically to provide a rental income guarantee for investors in residential properties in Australia. Landlords using the 2 or 5 Year rental guarantee enjoy the best of service and support for the duration of the life of the guarantee. Developers/Builders/Property Managers/Landlords have complete confidence in the Edge product because: Edge (Australia) Pty Ltd is a single product company, and is managed by personnel with many years experience in banking and real estate. The 2 or 5 year rental guarantee product has been subject of extensive research and prototyping to minimise unforseen risks, and is carefully designed to benefit all parties. Edge s RIG is risk guaranteed through the international insurance company, Hong Bao Global Ltd based in Hong Kong. This is the heart of the strength of the product and Edge s strength in continued delivery. Hong Bao Global Ltd is managed by highly experienced management personnel and is completely independent of Edge. Following several years of rigorous actuarial review and analyses, Hong Bao Global s guarantee product underwriting the Edge RIG is supported by a joint venture of high net worth international companies and a procurement division of the Chinese Government. Our Mission is to enhance a landlord s investment property rental income protection by making the 2 or 5 year rental income guarantee available through approved Edge partners. Our business to business partners are /Developers/Builders and Property Managers. Each Edge partner benefits from the opportunity to enhance their service to their clients and to improve their individual business success. For Frequently Asked Questions please refer to the website To proceed simply download the Wholesale Application found in the Documents Section of the website and . A Consultant will contact you to progress your 2 or 5 Year Rental Income Guarantee application. Call us now on ACN Suite 158, 2 Endeavour House Captain Cook Crescent MANUKA ACT 2603 Phone: