INVESTMENT REPORT

Portfolio Management Services

03 9614 8211

jjb@portfolioms.com.au

5/555 ORRONG ROAD, ARMADALE VIC 3143

INVESTMENT POTENTIAL

Property should achieve approximately $410 per week

Primary rental market is professionals

Based on rent of $410 per week, the property will generate a gross yield of 3.8% based on a purchase price of $550,000 with $5,000 contingency for repairs

PROPERTY

Attractive one bedroom apartment in excellent condition throughout

Floor plan features one bedroom, one bathroom, open plan kitchen and living area with bal-

cony, European laundry and single car space

Internal size approximately 60sqm

LOCATION

Approximately 7.5km South East of Melbourne CBD

Walking distance to:

-Armadale and Toorak train stations

-Abundance of shops, cafes and restaurants

-Multiple tram lines

-Local parks

5/555 ORRONG ROAD, ARMADALE VIC 3143

PURCHASE COSTS $

Cost of property

Property Price 550,000

Provision for repairs / refurbishment 5,000

SUB-TOTAL 555,000

Purchase related costs

Stamp Duty 28,070

Portfolio Management Services Fee (inc GST) @ 3.30% 18,150

Provision for legal disbursements * 1,500

Building report (reimbursed to Portfolio) 600

Pest inspection (reimbursed to Portfolio) -

Depreciation schedule 770

SUB-TOTAL 49,090

TOTAL PURCHASE COST 604,090

FINANCING COSTS

Mortgage amount if geared at 75.0% $412,500

Mortgage (interest only) at 5.00% 20,625

Client capital (with mortgage) $193,090

Provision for financing costs * 1,500

SUB-TOTAL 22,125

RENTAL INCOME

Anticipated weekly rent $410

Weeks rent paid 52

Annual gross rental income 21,320

GROSS ANNUAL YIELD on cost of property 3.8%

ONGOING EXPENSES

Mortgage interest 20,625

Provision for running costs * 10,665

SUB-TOTAL 31,290

APPROXIMATE ANNUAL NET REVENUE (9,970)

APPROXIMATE ANNUAL WEEKLY REVENUE (192)

Initial value 550,000$ 7.00%

Years held 5 7 10 15 20

Anticipated value 771,403$ 883,180$ 1,081,933$ 1,517,467$ 2,128,326$

Repairs $1,066 Water $1,000 $10,665

Management $1,599 Body Corp $5,000

Rates $1,000 Insurance $1,000

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5/555 ORRONG ROAD, ARMADALE VIC 3143

GROSS CAPITAL RETURN ANALYSIS

Assumed average annual growth rate of

Annual assumed running costs

Provisions: Stated figures are a guide only and may vary significantly. Repairs and refurbishment vary with the extent and quality of workagreed. Legal costs vary by company and property value, but generally include practitioner costs, bank cheque charges, land registrationcharges, and title search fees. Financing costs vary by loan and lender specifics, but generally include valuation fees, establishment fees,mortgage legals, registration and stamp duty. Running costs are hard to predict, but include repairs and maintenance (assume 5% of rent);property management, and letting fees (assume 7.5% of rent) plus other ongoing costs like rates .

Disclaimer: This financial summary is based on best estimate assumptions and information in sales documentation. Every care has been taken in its preparation, but actual results may vary significantly from those illustrated, as expected outcomes may not eventuate. In particular, variations may arise from using different service providers, and adopting different investor approaches, plus changing market conditions, including those for rent. We strongly recommend that you consult your professional adviser/s regarding the relevance of property investment to your particular situation, as well as the specific numbers illustrated.

LOCAL AREA MAP

MAP OF MELBOURNE

Kitchen

PHOTOS OF THE PROPERTY

Living area with balcony

Facade

PHOTOS OF THE PROPERTY

Bathroom

FLOOR PLAN