Maurice Goldberg

14 April 2009

The following are excerpts from a lengthy presentation on the current property opportunities in some of the eastern coast cities in Australia. The last four slides are past examples from our researched recommendations around Australia.

States

Cities

Suburbs

Project

Solution

“Pulse PropertyRating System”

5 Layer, 45 Point Filter

Valu

eO

pp

ortu

nity

1. Yield opportunity

2. Negotiated Reductions

3. Lifestyle Demand

4. Developer Stress

Street

Country

Pulse research model vers:022009.1

1. Demographics

2. Infrastructure

3. Yield variations

4. Economic cycles & Employment

5. Supply & demand

Project

Knowledge Experience /Volume

Networks, Relationships & Reputation

Whe

reW

he

reW

ha

t

Pulse property Research Model c

PROPERTY RATING SYSTEM

Nominal Sydney House Prices (1959 to 2008) 2005 dollars

0

50

100

150

200

250

300

350

400

450

5001959

1960

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

1961 credit crunch &Australian Recession

1982 global recession

1987 stockmarket crash

1990’s global recession

1974 global recession

ANZ Residential Property Outlook

* ANZ economics report 2008. Note: Equities fell almost 50% since this report was written.

*

Australian and US Vacancy Rates

0

2

4

6

8

10

121

99

5

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

US vacancy rates

Sydney vacancies

Melbourne vacancies

Brisbane vacancies

Australia vs USA Vacancy Rates. 1995-2008

SUPPLY & DEMANDSUPPLY & DEMAND - dwelling deficiency

Estimated Dwelling Stock Deficiency by State ('000)

50.8

19.522.1

-1.7

4.3

-1.8

0.4 0.9

-10

0

10

20

30

40

50

60

NSW VIC QLD SA WA TAS NT ACT

2007

2008(f)

2009(f)

Source: BIS Shrapnel and Pulse Property Research

• NSW has the biggest undersupply of any state or territory (forecast shortage of 50,800 units of dwelling stock)

SYDNEY - hot spot - 2009

• vacancy rates for rental stock is amongst the lowest in the country (around 0.9%)

• property prices have remained flat since late 2003 –

Sydney is well and truly past the correction Period

•residential construction rates are at the lowest level in 50 years

•rents are forecast to increase by another 25% over the next three years (2009-2011)

Sydney – Potts Point

• Purchase price $420,000

• Purchase date May 1995

• Settlement date August 1996

• Increase in value 364%

• Current value $1,950,000

• Annualised growth p.a. 11.6%

Sydney. Rockwall Apartments

Potts Point. 1996

• Purchase price $390,000• Purchase date 2000• Settlement date 2002• Increase in value Approx 64%• Current value $638,000

Melbourne – Port Melbourne. 2000

• Purchase price $475,000• Purchase date June 2004• Sale date July 2006• Increase in value Approx 74%• Sale value $825,000

Perth – Hay Street, Subiaco. 2004

• Purchase price $345,000• Purchase date Oct 2003• Settlement date Oct 2005• Increase in value Approx 80%• Current value $620,000

Darwin - Cullen Bay. 2003