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Professional Standards Collaborative Partnerships

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National Solutions Group

Strategies & Philosophies Current situation & Where

want to be? Possible Solutions Current obstacles Memberships Group benefits

do you

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Strategies & Philosophies

We aim to: Develop long

term relationships with you and your family to become your m0st trusted advisors Identify the lifetime objectives of our clients At all times, deliver services and advice that match these specific objectives Recognise the value of educating our 5/3/12 clients

Strategies & Philosophies

Structure

innovative partnerships between client and private advisors, designed to foster a Superior Level service and life time tailored planning

Incorporating:
Professional standards, Collaborative

Efforts and Lifetime Relationships

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Lifestyle & Financial Solutions

In simple terms we..... Identify financial & lifestyle objectives Calculate matching income & asset targets Identify current funding levels Assess: surplus, on target, shortfall Map out affordable strategies Conduct ongoing reviews and adjustment
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 Where are you now? Where do you want to

be?
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Australian Results at age 65....

Less

than 1% will retire wealthy with incomes over $50,000 An estimated 6 % will be considered well off with incomes above $35,000 23% will continue working 71 % will be dependant on our welfare system and our governments generosity.
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Australian Results at age 65....

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Begs some very important Questions?

Where

do you want to end

up? Rich? Well Off? Flat Broke?

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One possible solution.

Investing in Residential Property

Buy Buy

& Hold NEW real estate and combine the tenant income with the tax benefits to reduce your holding costs whilst attracting / participating maximum capital growth. Identify and manage risk.
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Growth Investment vehicle

Unlock Equity Home loan Rental Income

All income deposited

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Investment vehicle

Cash Deductions Interest Property costs Non Cash Exp Depreciation Building allowance Fixtures & Fittings

Unlock Equity Home loan Rental Income

All income deposited

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Investment vehicle

Cash Deductions Interest Property costs Non Cash Exp Depreciation Building allowance Fixtures & Fittings Total deductions

Unlock Equity Home loan Rental Income Generates Tax Credits

All income deposited

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$450,000

Buy 1 property today own it for 10 years 1 property

$900,000

$450,000

Buy 1 property every 2 years for 10 years 5 properties

$4,178,078

$450,000

Buy 1 property every 2 years and own for 15 years 5 properties

$5,910,00 0

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Based on assumed Property growth rate of 7.2% per annum

Universal Strategy

Buy multiple investment grade properties with no cash outlay and manage holding costs so as not to impact on lifestyle.

Build

and own this portfolio through growth cycles. Sell and or use loans to unlock equity to meet future goals.
Point

:Building your on investment property locks in equity from the start. Risk management.

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Performance

Australian Property has averaged above 11% growth since sale records commenced over 130 years ago. averages 5.5%

Income SEQ

property averages 13%(+) per annum over last 35 years. a modest 7 % growth, property values will double in around ten years. years today becomes $900,000 in ten

Assuming $450,000
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Rule of thumb.
Rule of 72. Any number

compounding at 7.2% per annum will double in ten years. This is an interchangeable formulae
10% number will double in 7.2 years 14.4% number will double in 5 years 5% number will double in 14.4years

Australian

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over 11% Sunshine Coast grows at average

Real Estate has averaged

Financial Planning
How

does property fit our strategy?

Property

is transparent, illiquid, real and part of the fabric of society has a history that possibly predates all other forms of investment

It

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1 Act

2 Pas

3 Su p

$$$$$

Accumulatio n

Income

Debt

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Whats the reward?

Future Anticipated Net Capital Value PIA. IRR.

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Identifying and Managing risks.

Defining risks Managing risks

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Defining Risk
Market Risk =Net Capital Value upon exit. Legislative Risk Interest rate Risk Personal / Financial Circumstances Risk Tenant Risk Construction Risk Location Risk Entity Risk

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Formulas & Strategies to Manage Risk .

Anchor infrastructure Median house price per suburb Key location criteria Rentable inclusions Accredited and approved builders. Tenant surveys Research Planning and government

connections.

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Anchor Infrastructure
Public

Money

Universities, hospitals, government

offices.
Acts

as a magnet for Public and Private Money

e.g. Chancellor Park.

Addresses

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greatest risk associated with investment in property the tenant.

Anchor infrastructure
Eg Sunshine Coast University 1996 through state parliament, Since then massive re-planning by both Local and State Govt . In co-operation with the developers and commercial sector- banks, medical, educational, retail-Woolies, Joyce Main. Master planned community, 5000 staff, 20,000 students.

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Complimentary Infrastructure
Schools, shops, public transport, Entertainment, Leisure. Very important but not a guarantee

of

revenue.

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Key location criteria

Must

be within 20 kilometres radius of confirmed anchor infrastructure. Must have existing community facilities eg
Schools, shops, medical, public transport,

employment, leisure. Must have supply constraints Must have responsible developers active in the area.
Must
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have minimum population of 100,000

Why is it so hard?

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NSG Membership

We are applying for the position of your lifetime advisors

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Why were called National Solutions Group........

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The NSG Team

30 years industry experience.

Our board of Directors

The NSG Team of Private Client advisors. Graham Donnelly Accountant & Head of

NAS Rick McCarthy Head Of Property Group Scott Jarrett Head of Finance Melanie HoneysettHead of Property Management Dave Beveridge Head of Education Jolene Sukhersh Head of Financial Planning 5/3/12

Professional Accreditation
All

NSG entities fully comply with the laws and guidelines set out by the relevant industry bodies, such as : ASIC HIA, BSA, REIQ ACCC Office of Fair Trading National Institute of Accountants. QLD Law Society
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Fully Licensed
All

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team members hold the appropriate qualifications where required such as: NAS: Registered Tax Agents NRS: Fully Licensed for Real Estate under PAMDA NF&MS: Credit Licences for writing loans Financial planning division holds an AFSL

Membership

Finance review with National Finance & Mortgage Solutions Personal review with National Accounting Solutions Access to valuable research residential properties Automatic membership in the Pre Release Club Access to property purchases at or below bank valuation National Investor Solutions will also conduct a protection cover review Membership in the NSG Group Newsletter NSG Buying group Ongoing access to your Private Client Manager Two individual taxation returns Attendance at a one day investment workshop (Property and Shares) Financial planning preliminary review

5/3/12 3 months free property management for any of your properties

National Solutions Group Private Client Membership.

Group membership benefits: Ongoing access to your Private Client Manager

$2,500.00

Two individual taxation returns: valued at up to $150 each: $ 300.00 Attendance at a one day investment workshop valued at: $1,495.00 Financial planning preliminary review valued at: $ 300.00

3 months free property management for any of your properties:$ 500.00 Total value year 1.
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$5,095.00

Your investment

Annual

Membership

$1,200

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Our Service and Value Guarantee:

We

are so confident that you will be delighted with our offerings, that in the event that you are not completely satisfied that NSG has delivered the detailed services or value, over and above your membership fee, we will gladly refund your membership paid to date for that year

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From this

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To This.....

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Did

we get the job?

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The Property Concept

Buy Property with ZERO OUTLAY!

Dont rely exclusively on cash flow.

Buy

and Hold

Own it through growth cycle/s.

Match

Property Value With Asset Targets.

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How Are People Financing Today?

Lazy Equity

Unlock Equity

Investment Income

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Financing A Property Today

Low Docs No Docs Full Docs Loan to value ratio (LVR) Debt servicing Ratio (DSR) Valuers Lenders Mortgage Insurance (LMI) 80% -90%-95% -97% 100%-105% Stand alone Cross Securitised Trusts
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Keeping It Simple
Identify Identify Dont

Your Equity. Your Income.

forget what the next property will add.

Income and Asset Value.

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What role do lenders play?

Lenders

approve or decline the borrowing

Set -rates, terms, fees, penalties and

gearing levels.

What

role??

Understand What
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how they work and what their market view is. role do valuers play?

How To Master Finance?

20-30 lenders. Each with 5 products Each product with multiple variables Bring in trusts & companies ??????????? Get

a Good.GREAT Broker.

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KISS
Happy to borrow @ 80%? Youll need $140,000 equity

in your home to buy an average investment property in QLD

Happy to (able to) Borrow 95%? Youll need $57,000 equity in your

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home to buy an average investment property in QLD youll also pay about $6,000 in LMI

Cash flows
Money In:
Money Out:

Interest (7%) Rent $27,900 $21,500 Rates $ Tax refund 1,800 $ 6,000 Prop Mangmnt $ 1,800 Insurance $ Leaves you a contribution of less than $70 per $ 700 week.
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Universal Strategy
Buy

multiple investment grade properties with no cash outlay and manage holding costs so as not to impact on lifestyle. and own this portfolio through growth cycles and use loans to unlock equity to meet future goals. your own investment property locks in equity from the

Build

Building
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Performance

Australian Property has averaged 11% growth since sale records commenced over 130 years ago. averages 5.5%

Income SEQ

property averages 13%(+) per annum over last 35 years. (Doubles every 6 years) a modest 7 % growth, property values will double in around ten years. years today becomes $900,000 in ten

Assuming $450,000
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Build your own vs Buy existing.

Buy land & build.

Land cost $200,000 Stamp duty $ 5,500 Holding costs. $ 10,000 Build 4 bed home $210,000 Buffer $ 5,000 Loan costs $ 3,000

Total borrowed

$433,500

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Buying a completed home

Builders costs: Land cost $200,000 Stamp duty $ 5,500 Holding costs. $ 10,000 Construction cost $162,000 Loan costs $ 3,000 (Builders costs $380,500) Plus profit 20% $ 76,100 Buy price $456,600 Stamp duty $ 14,000 Loan costs $ 3,000 Buffer $ 5,000 Total borrowed $478,600

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Borrowing comparison

Option A: Total Borrowing $433,500 B: Total Borrowing $ 478,600 $45,100.

Option

Difference: Same

house on same block with same inclusions.

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All accredited builders must Agree to :

Restricted construction schedules with penalties for late completion. Client contact and reporting standards Use standard suppliers and allow quality assurance inspections as required. Meet quality standards Meet license capacity tests Meet and maintain pricing

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Key Formulas & Strategies.

Anchor infrastructure Median house price per suburb Key location criteria Rentable inclusions Accredited and approved builders. Tenant surveys Planning and government

connections.

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Anchor Infrastructure
Public

Money

Universities, hospitals, government

offices.
Acts

as a magnet for Public and Private Money

Eg Chancellor Park.

Addresses

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greatest risk associated with investment in property the tenant.

Key location criteria

Must

be within 10-20 kilometres radius of confirmed anchor infrastructure. Must have existing community facilities eg
Schools, shops, medical, public transport,

employment, leisure. Must have supply constraints Must have responsible developers active in the area.
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Must

have minimum population of

Some things just dont rent.

Rentable
Bedrooms Garages Wardrobes Air conditioning Kitchens

Not rentable
Double

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ensuites, bathrooms, laundries Out door areas

sized bedrooms Three car garages Room size wardrobes Ducted air conditioning Granite designer

How much do I spend?

$370,000 Median house range by suburb. Sales per month. $475,000 +

Price
2 0 0 2 5 0 3 0 0 3 5 0 4 0 0 4 2 5 4 5 0 5 0 0 6 0 0 6 5 0

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Steps in our client service process.

Initial

appointment to present the acofe property program.

During this meeting a senior acofe

property consultant will meet with your client and review the overall strategy of property investment. This will include: specific cash flow analysis, location specific research and samples of property design and inclusions.
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Steps in our client service process.

Target Location presentation.
Once

the initial meeting has determined clients suitability for the acofe property program, thorough presentation of the target location and property will be arranged.
This will include physically inspecting the

location, infrastructure and land selections.

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Case study
Bright

Water

Within 5 klms or less of 3 significant

pieces of anchor infrastructure. Bounded by National Park and existing successful estates. Access to the CAMCOS transit corridor. 1200 home sites private school, shopping facilities, lakes, public transport, minutes to beaches.
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Price Point and Design.

Sunshine

Coast Median House price $380-$475,000 Most in demand type of Property:

4 bed Double Garage, ensuite A/C East of

Bruce highway. Land size irrelevant. Ideal House size: 195- 220sqm Rental income: $440-460 per week. Total package price Bright Water: $455,000 5/3/12

In a nutshell our services include

Research into key locations, formulas and strategies.

Negotiate

(5 member team)

spots.

land supply in identified hot

Securing land using options contracts. Negotiate best package and price from

(2 member team)

panel of 5 Accredited builders. (5 member Team) Present the findings and research to clients. (2member team) One on one property and location specific presentation.
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Prepare

true fixed price construction contracts. Present both land and construction contracts to client Ensure all contracts subject to finance. Present for finance approval, yours or ours.

Oversee construction process. 5/3/12 Enlist early involvement with key

Expect packages must value within 2% of contract price.

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Thank you

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