Perth Landholding Opportunity - Alwin Aw

Top 5 Reasons Why PERTH

• POPULATION 2,300,000 + GROWING MIGRANTS

• PERTH ACCOUNTS 46% OF AUSTRALIA EXPORT

• 1000 PEOPLE A WEEK MOVING TO THE AREA

• 300 NEW HOUSES A WEEK NEEDED TO COPE

• RIGHT PROPERTY CYCLE – GOOD TIME TO GET IN

Which would you invest in?

Which will make more money for a smart investor?

Which one do you want to be?

SMART INVESTOR NORMAL INVESTOR

Individual Plot + Infrastructure Cost

100,000 Individual Plot Cost 250,000

Construction Cost 225,000 Construction Cost 225,000

Total Cost 325,000 Total Cost 475,000

House Valuation 500,000 House Valuation 500,000

Profit 175,000 Profit 25,000

Home Owner Investor$$

Developer$$$$$$$

Original Land owner$$$

Three Stages in Real Estate Investments

• For years developers have been making millions of dollars.

• Buying potential sites, holding them for years, getting planning and then building houses.

• 99% of the rest of people have to get involved at the most expensive part of the process.

Home Owner$500,000

Land with permit$250,000

Pre permit$50,000

Participate in a development from early stage

YOUR OPPORTUNITY TODAY

Watson Property Group is a leading independent and privately owned company specialising in residential land sub-division and turnkey investment property developments in Western Australia.

Formed in 1999, the Group has been responsible for capital raising, project management, sales and marketing over a portfolio of profitable projects.

WATSON GROUP OF COMPANIES

Completed developments:2,275 lots with a gross sales value of $461.1 million over 42 developments

Current projects: 542 lots with a gross sales valueof $230.5 million over 16 developments

Total current and completed projects: > 58 developments2,817 lots with a gross sales value of $1.4 billion*

* Values updated to Consumer Price Index (CPI)

WATSON PROJECTS - NORTHERN PERTH

WATSON PROJECTS - SOUTHERN PERTH

Pictures of wpg office

Price paid $30,000 per lot Pre Permit

Time taken to get permit 4 years

Price Sold $160,000 per lot with permit

Houses Price paid $400,000 to $500,000

70km from CBD

Launching event – selling house and land package in Perth

Price paid $20,000 pre permit

Time taken to get planning 2 years

Price sold $150,000 Lot with permit

Houses sold $600,000 to $800,000

20Km from CBD

Price paid $42,000 per lot pre permit

Time taken to get permit 5 years

Price sold $ 160,000 per lot with permit

Houses sold for $k600,000 to $900,000

25KM from CBD

Price paid $47,000 per lot pre permit

Permit took 5 years to gain

Price sold $230,000 per lot permit

Houses sold for 1 million plus

10Km from CBD

Key success factor

• Australian Property cannot be resold back to an overseas buyer but only to residents/citizens of Australia.

• Buying property where the locals want to live is very important, (think like a local buy like a local)

• Number one thing locals will look for when buying a property is employment.

• Buy where the government will put their money with infrastructure investments for roads, rails, industrial zone, a plan to draw population to the area.

PERTH 20 YEARS AGO

PERTH TODAY IS NOW 120KM FROM

NORTH TO SOUTH

South East Growth Area

PURPLE AREAS ARE WHERE FUTURE HOUSING WILL BE

DEVELOPED

ARMADALE EXPANSION START 2008

BYFORD EXPANSIONSTART 2012

MUNDIJONG EXPANSION START 2016

Armadale 2010

Armadale 2016

Byford 2010

Byford 2016

Focus on what is on the table TODAY ?

Opportunities in Armadale and Byford may have passed

But TODAY you have an exciting chance to take advantage of the

next area for development

WELCOME TO MUNDIJONG

OUR SITE INSIDE GROWTH AREA

RED CIRCLE INDICATES GROWTH AREA

Mundijong - Growth Area, 33km to CBD

• A report recently released by the Australian Bureau of Statistics has revealed the Shire of Serpentine Jarrahdale is the fastest growing locality in the nation, with a percentage growth rate of 6.8%.

• “Serpentine Jarrahdale has been in the top ten fastest growing localities in the nation over recent years, but with many new estates now available in the Byford area, and additional housing planned for Mundijong, this growth rate shows no signs of slowing down, so much so that we expect city status within the next 3 years,” Mr Gorbunow

FASTEST POPULATION GROW – Current 3,000 Target 30,000

• NEW MAJOR LIGHT INDUSTRIAL ESTATE (West Mundijong District Plan)

• NEW FREIGHT RAIL TERMINAL

• POPULATION GROWTH OF 30,000 - 50,000

• 17,000 NEW HOMES TO BE BUILT

• MAJOR NEW POLICE STATION - $8m under construction now

• NEW TRUNKS ROADS

• NEW RAPID TRANSIT METRO TRAIN STATION

Source: by TME Town Planning Management Engineering Pty LtdSource : District 2031 and beyond by Western Australia Planning Council (WAPC) in 2010

PLANS for the town of MUNDIJONG

12 NEW PRIMARY SCHOOLS

3 HIGH SCHOOLS

2 PRIVATE SCHOOLS

10 DOCTORS5 DENTISTS

4 REAL ESTATE

COMPANIES

NEW SPORTING

FACILITES AND PITCHES

LOCAL COUNCIL NEEDS BY 2020

• 474 Hectares of new light industrial area

• Create up to 10,000 new jobs

• Two major new highways connecting Perth CBD and the coast

• Over 200 new company's moving to the area

New INDUSTRIAL ZONE

Source: by TME Town Planning Management Engineering Pty Ltd

• Create up to 3,000 new jobs.

• In the Perth metropolitan region, estimates suggest a doubling of total freight over the period 2013 to 2030.

• Future container are expected to increase from 680,000 containers per annum in 2013-14 to approximately 1.5 million per annum by year 2030.

• This figure could potentially reach 2.5 million by the year 2035-36.

NEW RAIL FREIGHT TERMINAL

Key infrastructure initiatives

Item 3: Mundijong Road to 4 lane

Mundijong Road ultimately connect 4 highways

Mundijong town and nearby

SELLING NOW (oct 2016) in Whitby5 min drive from WPG Site.

450 sm – A$183,000 land

Mundijong Town now

WPG SITE

BUFFER ZONE

WPG

LOTS

FUTURE RESEDENTIAL

New Freight

Terminal

GANGEMI ROAD VIEW - SOUTH

ACTUAL SITE NOW add photo

Police Station Under Construction

AUD 8 Million

Housing 45 police officers

add photo

Updated Oct 2016

PERTH WAKE PARK – 6 MINS AWAY

DELTA FORCE PAINTBALL – 7 MINS AWAY

Key success factor – right location

• Australian Property cannot be resold back to an overseas buyer but only to residents/Citizens of Australia √

• Buying property where the locals want to live is very important, (think like a local buy like a local) √

• Number one thing locals will look for when buying a property is employment. √

• Buy where the government will put their money for infrastructure investments for roads, rails, industrial zone, a plan to draw population to the area. √

$50PSF

WITH PERMIT VALUE

PRE PERMIT VALUE

$10.34PSF

5 YEARS 10 YEARS

How does it work ? CREATE VALUE

Option to sell on 23/3/2026 at Market

Value if no permit

HOUSE + RENTAL

YOUR OPPORTUNITY AT DIFFERENT STAGES

PRE DEVELOPMENT APPROVAL

POST DEVELOPMENT APPROVAL

MARKETING

Buy a lot for A$45K-A$65k

Register your interest with LANDGATE(Australia Land Authority)

Submit Development Application (DA)

Stage 1 fee $10,000 included

Lawyer return leasehold for freehold

Apply FRIB

Pay stamp duty

If sell, elect land agent

Infrastructure – road, sewage etc

Pay stage 2 fee

Select builder and design

Finance to build if required

Leasing arrangement

Register title

Marketing work

Pay stage 3 fee

Investor A

Investor B

STAGE 1 STAGE 2 STAGE 3

* Elect Project Management (refer scope of work)

INVESTOR A :SELL YOUR LOT UPON PERMIT, NO INFRASTRUCTURE COST

Value of land with permit 250,000

Cost of original purchase (50,000)

Infrastructure cost to be deducted from sale price when lot is sold (estimate only) – Stage 2 fee

(50,000)

Pre construction profit 150,000

Value are illustration only

INVESTOR B :BUILD A HOUSE - with WPG / other builder

Completed house valuation 500,000

Cost of building a house (225,000)

Infrastructure cost (50,000)

Original cost of lot (50,000)

Net profit after sale of the house 175,000

Value are illustration only

INVESTOR B : BUILD A HOUSE FOR RENT- with WPG assistance- with your own leasing agency

Lot + build house 325,000

Rental income per week 400

Rental income per year 20,800

Gross rental yield (Cash buyer) 6.4%

Gross rental yield (with mortgage) • Option for construction loan up to 70%

12.4%

Equity / valuation of the house 500,000

Value are illustration only

CHOOSE YOUR LOT – Size, Location, Price

Fully integrated estate with 1163 lots with education centre, recreation facilities and shopping precinct.

ONLY 700 LOTS FOR SALE

NOT FOR SALE

HASSLE FREE BUYING PROCESS – Stage 1

Choose a LOT (s) of your choice

Payment :A$ lot price + A$400 lodgetment

To solicitor Trust Account

5 – 7 years for Development Approval

Decision for Stage 2 upon DA/ PERMIT

Sign contracts

1. Sales agreement for Lease & Lease Agreement2. Project Management Agreement

3. Surrender of Lease & Authority to surrender lease4.Option to sell

Reservation form & passport copy

Your interest registered with LANDGATE ( Australia Land Authority)

Surrender the Lease for FREEHOLD when ready(by lawyer)

WHEN PERMIT READY – DECIDE WHAT YOU WANT (Stage 2)

CHOOSEYOUROPTIONS

SELL YOUR LOT PRIOR TO TITLE (INVESTOR A)

BUILD HOUSE ON YOUR LOT (INVESTOR B)

EXTERIOR

CHOOSE YOUR DREAM HOME DESIGN

INTERIOR

• Dedicated and experienced property managers from reliable and well established firm around Australia.

• Duties of the property manager :

– Secure the right tenant for your property (with your approval)

– Collect rent and pay on time into your account

– Pay all outgoing related to the property on your behalf such as body corporate, quit rent, council rates etc

– Handle any complaints or issues related to tenant on your behalf. They even attend tribunal on your behalf as part of their service

– Make appropriate proposal for rental review

– Conduct regular inspection on your property – especially within the first 6 months of lease

– Annual income and expenses summary for your tax purposes

– All communication by Email. Easy to manage

• Residential Tenancy Act

• Fee is usually 7%-8% + GST

Leasing and Management Assistance

HOW TO FUND YOUR KIDS EDUCATION IN AUSTRALIA

MELBOURNE UNIVERSITY 4 YEARS COURSE FEES + ACCOMMODATION + FOOD

EST TOTAL COST : A$250,000

PROFIT A$150,000 X 2

=A$300,000

OPTION 1 : USE A$300,000 TO PAY FOR EDUCATION

OPTION 2: USE A$300,000 TO BUY YOUR APARTMENT IN MELBOURNE

OPTION 3: USE THE CASH TO PAYDOWN YOUR LOANS

HOW TO FUND YOUR RETIREMENT

PROFIT A$150,000 X 2

A$50,000

A$50,000A$50,000

As investor A

A$50,000 for infrastructure cost A$225,000 for construction

TOTAL A$275,000

Rental A$20,800 pa= MYR 5,200 pm

Property free of loan

+

HOW TO SECURE YOUR “ PR “ IN AUSTRALIA –VISA 132

Learn how you can have the best of both worlds with development

ASK YOUR AGENTS OR CONSULTANTS TODAY

CHUNK DEALS – how you are secure your best deal

FOR LIMTIED TIME ONLY

CHUNK DEALS

• ASK YOUR AGENT/ CONSULTANT TODAY

Q & A

Lot price of nearby projects? Armadale Project : Saville Centre

450sm for A$251,000

Whitby Estate ( New HL) – 5 min drive from WPG site

Lot Street Frontage Area BAL Price Status

Lot 0261Skyline Boulevard

14.99m 612m2 N/A $218,000 Available Enquire

Lot 0262Skyline Boulevard

14.99m 612m2 N/A $218,000 Available Enquire

Lot 0265Sapwood Grove

15m 450m2 N/A $183,000 Available Enquire

Lot 0266Sapwood Grove

15m 450m2 N/A $183,000 Available Enquire

Lot 0267Sapwood Grove

15m 450m2 N/A $183,000 Available Enquire

Stage 2B: Release One: Titles anticipated May 2017