CREATE WEALTH AND FINANCIAL FREEDOM VIA PROPERTY DEVELOPMENT

Understand the current economic outlook & market trends Understand the property development process Understand the secret to acquiring property at cost Educate yourself and learn why you should take action NOW !!

YOUR HOW TO GUIDE TO RETIRING FINANCIALLY FREE

By Amber Khanna

Disclaimer Any financial, taxation or investment information provided during this presentation/article is of general nature only. Before making a decision on the information presented or discussed at this presentation & or article, report, you should consult with your own independent financial advisor and or accountant to assess whether the advice is appropriate to your objectives, needs or personal situation. Persons may wish to make this assessment themselves or seek the help of an adviser. No responsibility is taken by the writer/presenter or Positive Property Pro (Masava Pty Ltd) should you decide to act on the information provided. Although the information is provided in good faith, it is also given on the basis that no person using the information in whole or in part shall have any claim against the presenter or Positive Property Pro (Masava Pty Ltd). You here by declare that you understand that you are solely responsible for acting on the information provided & that you have consulted the appropriate authority in the subject matter, before acting on the information. Positive Property Pro (Masava Pty Ltd) and its presenters/ writers are not Accountants, Tax lawyers or financial planners.

First of all let me congratulate you for taking the first step towards financial freedom and building your property portfolio. You are already among the ones who do, as opposed to ones who think they should. So congratulations for taking the first step for creating a secure financial future for yourself & the loved ones around you. No Ulterior Motives The aim of this report is to explain you how Positive Property Pro (PPP) can help you achieve financial freedom. PPP is not here to sell you anything. We are not in the market to purchase your property. We receive no kickbacks from any of our professionals. Our suggestions are totally unbiased and are not driven by any ulterior motives. We get our kicks from helping our clients achieve financial freedom & or considerably improve their financial footings by investing in properties & or by developing their own property to create their existing dwelling into two or more investment properties. You will gain the following key insights from reading this report: You will understand the current economic outlook & why you should take action now. You will understand what it takes to be a property developer. You will be able to gauge & analyze your financial position. You will understand the development process. You will learn how PPP will be your friend and help you create a portfolio of investment properties. PPP will reveal how you can acquire investment properties at cost. You will know why now is the right time to invest in the property you already own. Current Economic Outlook DID YOU KNOW - Studies in the US show that life expectancy could reach 100 years of age by 2030, says Stanford University Biologist Shripad Tuljapurkar Nine News

 Recent life expectancy figures issued by the Australian Government Actuary estimate that a 55-year-old woman has a 35 per cent chance of reaching 95 years and a man of the same age has a 19 per cent chance. On average a 55-year-old woman has a life expectancy of 89.7 years and a 55-year-old man 86.2 years. Increased Longevity continuous medical advances in science and technology and assumed improvements in mortality. Decline in disability levels - The Hogan Review (2004) pointed to a growing body of evidence in the United States showing falls in disability rates among older people. While the average life expectancy of an Australian male is 83, only 4 per cent of Australian men die at this age and more than half of them live longer. For example if you are 60 and retiring today, there is a 50% chance that you or your spouse will still be alive after the age of 90. WHAT DOES THAT MEAN FOR YOU It means that chances are that more and more Australians may have no money left to support their retirement by the time they retire. About 310,000 people who were working in 2007 had previously retired (that is, stopped working with no intention at the time of ever working again). The most common reason for this group to return to work was financial need. Superannuation does not solve the problem of funding Australias growing generation of retirees. Economists are warning of a looming black hole with many Australians unable to fund their retirement, leaving the government to pick up the slack & deal with the massive budget blowout. Thats prompting calls to raise the retirement age to 70 years and ban lump sum superannuation payouts. Reasons People can get access to their superannuation well before they hit pension age. One third of all superannuation balances are being spent before people hit pension age. Studies show that the group between 50 and 54 years of age has an average personal debt of about 94 per cent of personal debt to

superannuation savings. Expected source of income at retirement Over 50% of retired men expect superannuation to be their main source of income. The second most common source of expected income was a government pension or allowance. Who is to say that 10-20 years from now there will be super or a government pension to fall back on? You might be surprised to learn that more people die coming down a mountain than climbing up so much focus and planning goes into the ascent that the descent remains neglected. YOUR POSITION: YOU CAN EITHER, CHOOSE TO RETIRE SHORT CHANGED OR CONTINUE WORKING TILL ITS TIME. OR YOU CAN ACT NOW & CHOOSE YOUR DESTINY AND NEVER SETTLE FOR ANYTHING LESS THAN YOU DESERVE. YOU CAN KNOW MORE, BE MORE, WANT MORE, MAKE PROGRESS AND BE HAPPY. ITS NEVER ABOUT MONEY; ITS ALWAYS ABOUT A SENSE OF MASTERY. THERE IS ONLY ONE EMOTION THAT YOU NEVER WANT TO HAVE WHEN YOU RETIRE & THATS REGRET. 57% of Australians generate wealth-using property as their vehicle. If you are a property owner, you are already among the top 57% & I applaud your accomplishment. Question now is, how do you go from where you are to an even wealthier position. The answer lies in your property. You are sitting on a gold mine, thats where Positive Property Pro can help you go to the next level.

Positive Property Pro can help you, if any of the following rings true to your situation: You have land with development potential. You always wanted to develop, but are short on either time, knowledge or do not have an experienced team on your side.

You want to sell the land, but would also like a share in profit if someone else developed it. You have access to equity that you would like to reinvest. You would love to live in a new house, but currently live in an aged house with a big backyard.

You have land/property with zero or negligible mortgage, but no cash to develop. You are looking to invest in property, but not sure if this is the right time to buy, as capital growth in Melbourne is hard to achieve. Through our model of acquiring property at cost, you can instantly achieve capital growth, re-access that capital & reinvest again.

You would like to bullet proof your retirement against the ever changing economic conditions, so when you live up to a 100 years (which by the way now is a very possible reality), you have enough wealth to last you through your retirement & more to leave behind as your legacy.

You are only 10 steps away from developing your own property & achieving financial freedom. 1. Decide The first step and the most difficult step to take when starting out to build wealth, is taking the decision to just do it. Being clear about what you want and believing 100% that you can do it. There are many investors who take courses after courses and keep switching their chosen vehicle to build wealth, only because they are unable to decide what they want. Most of them honestly dont even know what they want. Your reading this report tells me, that you are not among those. You are now being proactive and applaud you for taking the first step & thats education. 2. Financial Feasibility Analysis This is where projects either make it or dont go forward. Due Diligence and feasibility analysis is the single most important factor in determining if the project (in developers lingo) stacks up. Consider running a new business without a business plan, what do you think will happen 99% of the time it will fail, as it does not know where its heading or how much is it costing itself. Feasibility Analysis or in short feaso is very similar to a business plan. A feaso reveals all costs that will be required to carry the project. A feaso is what the bank will look at when determining if it should loan you the money for the project. It is imperative that a professional is hired to conduct this, a novice wouldnt even know where to begin. A good feaso can convince a bank to invest in your project. 3. Due Diligence on the other hand takes into account all other factors to ascertain constraints on the proposed site. These constraints can typically be either related to town planning or engineering issues. Town Planning issues will deal with matters like, zoning, density, setbacks, heights, neighbor hood character, vegetation protection overlay etc. Engineering issues on the other hand will deal with the availability & position of service like sewerage, water, drainage, power, traffic, noise, flooding etc. 4. Market Analysis usually overlooked by novice & first time developers, but is one of the very important aspects of developing your property. Market Analysis conducted by Positive Property Pro includes the following information: a. Whats already being built in the neighborhood? b. Who are the builders already building it? We also try and find out the

costs they are building it at to make sure that we get the best deal for our clients, when its time get the builders to bid on the project. c. What is the design intent in the local area? This is determining what kind of townhouses or units are being designed in your area. d. What is the demand of such designs in your area? e. What would be the end value of townhouse? f. What is the rent in the current market for a new townhouse & for an old property? g. What are some comparable sales in the near by area?

5. Council Permits When buying a property you think of three things, LOCATION, LOCATION, LOCATION. Similarly when you are about to develop your property, you think of another three COUNCIL, COUNCIL, COUNCIL. Ladies & Gentleman, council can be your greatest ally and can be extremely difficult to deal with as well, when trying to gain permits for your development. So when thinking of developing, you have to think of realising the best possible use of land, keeping in mind that the new designs that you come up with are within councils boundaries. Sometimes, council alone can delay projects so much that you start to wonder why did I ever go down this path to being with. There are however, ways to challenge the council and take the matter to VCAT, but I strongly suggest against it. Councils are there for a reason & it is always best to work within the boundaries of the town plan. Positive Property Pro always makes sure that a highest best possible use of land is achieved within the council guidelines. Local Authority Permits are a statement of consent that permit a particular use of land. There are three different permits applicable to the development of land. a. Development Permit aka Town Planning Permit or a Development Approval (DA) which deals with permits related to town planning and whether or not the proposed use for a particular piece of land is appropriate for it. (For example: Building 4 townhouses on a single lot close to a shopping center.)

b. Building Permit aka Building Approval or (BA) BA follows DA & deals with the design of the building.

c. Engineering Permit aka Operational Works Permit This is linked with Building Permit and deals with engineering design such as drainage, earthworks, road works, sewer & water.

6. Construction Finance Generally you will start sourcing finance after conducting a full-scale feaso. Once you have determined the equity you can access within your property and determined the cash deposit you can contribute, its time to start sourcing finance. There are a number of finance sources available these days including debt or equity finance, bank or nonbank finance, senior or subordinate finance, and on the rare occasion seller finance. 7. Off Plan Marketing This step can be omitted if your project is only a small dual occupancy or has a potential for only three town houses. However, if your project is considerably large in size, say 4 or more townhouses you may wish to start selling immediately after the necessary permits. All this will depend upon the state of the economy & will help in ensuring the financier that there is demand for the product. Moreover, every pre-sale you achieve, offsets the level of debt, which in turn reduces the risk in the project. Selling the properties after they have been constructed are usually good when times are good and the market is rising. This is particularly good when the cost of holding the property is outweighed by the capital gains the market can present. 8. The Actual Build aka Construction You can legally commence construction once all permits have been obtained. This is the most costly stage in property development & also the one that has the greatest impact on your final profit. Usually all construction processes are either executed via an open or select tender. Prior to tendering the construction you will have to consider what form of construction contract you wish to use. There are various options available from construction management, cost plus, design & construct (only used if design is not completed), guaranteed maximum price, lump sum fixed price or a turnkey contract. 9. Settlement of Sale this is second last stage of property development. In order to complete the project and settle the sales you need a certificate of completion, final survey, certificate of occupancy, plan sealing & issue of titles. All of these matters must be finalized before you can collect your prize money.

10. The Prize The final stage is collecting the fruit of your property development investment. To some people, it comes as a big fat cheque and to some it comes in the form of equity in their newly acquired investment property at cost. No matter how it comes, it leaves you in a better financial position than you started off with.

Strategy Numerous books have been written on building wealth via property investment & how it can be used in various ways to legally reduce tax. Property development can be used to effectively accelerate the wealth building process. When you develop the property, you acquire the property at cost i.e. a property with a retail value of $500,000 can be acquired by investing $420,000. In other words you can achieve an annual capital growth rate of 7% immediately by accessing 3.4years or 1237 days of growth on day 1. Thats a fantastic start. This means that you no longer have to wait to achieve capital growth, you have access to it from the very day you acquire your investment property. Lets look at some numbers and capital requirements with an LVR of 80%. In order to purchase a property worth $500,000 @ 80% LVR you need 20% equity or $100,000. However, this property for example, my cost you only $420,000 because you are going to develop it yourself. Therefore, in essence you would only require an input of $20,000 & the loan would be for $400,000. Any other investor who purchases a property from the market would have to pay full retail value of $500,000 for the same property. He would then have to wait some years for the property to grow to a point where he can refinance and access the growth equity in that property to put down as deposit against the next investment property. However, you as investors who developed this property have hardly put any equity in the property and the bank carried all the debt. This enables you to extract the manufactured equity and use it on the next deal, which accelerates your acquisition rate and potentially build a massive property investment portfolio.

Portfolio Explosion The reason you are in property development is so you can create a snowball effect to accumulate wealth and investment properties. In order to do that you need to make sure that you follow a carefully designed path. Following are some steps that will one-day lead you to a life of financial freedom: Location Location Location If buy a property, always buy in well located areas close to transportation, schools & shopping centers. Only buy at below market price Manufacture growth by developing your property i.e. add value to it Rent out all the new developed townhouses. New townhouses always attract better rent and tenants. Refinance get your property revalued after development & get it refinanced by your bank. Extract your initial deposit and leave the new generated equity in the property. That extracted deposit will now allow you to do the same exercise all over again. Repeat this process as often as possible in a way that you end up creating 10 properties that you hold in the next 10 years. At the end of 10 years, sell off half your portfolio and use the money to pay off the other half. On average, in Australia a property doubles itself every 10 years. Now you will have 5 properties that will put money in your pocket i.e. your investment properties will be cash flow positive. On average if you have chosen wisely to begin with you should have at least $100,000 per annum in rent, doing nothing at all. In addition to that your properties will be debt free because you paid them off by selling the other half of your portfolio. How is that for a care free and financially free retirement?

Why is now the best time to develop in Melbourne? If you asked me, when is the best time to develop or invest in property, I would say 10 years ago was the correct time? If you had invested in property 20 years ago, by now you would have at least doubled the value of your wealth and gained equity. However, if you would ask me the same question 20 years from now, I would say now is the right time to develop your property. Lets first understand the property market cycle.

DEVELOPMENT MARKET CYCLE Peak

PHASE 4 - GROWTH Rising sales Strong price growth Improving yields Increasing building activity Vendors market PHASE 1 - MATURITY Flat sales Weak price growth Steady or falling yields Slowdown in building activity Cautious market

PHASE 3 - BOTTOM Market Rebounding Prices stating to recover Building projects starting Sales picking up Yields starting to rise

Bottom

PHASE 2 - DECLINE Falling sales Stagnant/falling prices Uncompetitive yields Projects abandoned Buyers market

Development Market Cycle The property market is cyclical & goes through peaks and troughs over a period of time in direct response to variable economic conditions & customer sentiments & confidence. It starts when the market has matured, then declines and bottoms out. Eventually when the customer confidence gains speed due to various factors after the period of decline, the cycle starts again. Phase 1 Maturity As a market matures the gap between the demand and supply closes and the market starts to flatten out as prices stabilize. Not a good time for investment, why? As this period is marked by Shorter Days on the Market i.e. properties sell quickly. Developments that were being completed arrive on the market, hence closing the gap between supply & demand. Investors confidence is high Businesses thrive Building Approvals increase Employment improves Phase 2 Decline As the gap between the supply & demand closes, the market become over supplied and demand falls, which prompts vendors to offer discounts & special offers. Some typical characteristics are: Increase in unemployment Repossessions & Liquidations Businesses default Discounted rents and sale price concessions Interest rates increase Oversupply of new developments Days on the market increase i.e. properties now take longer to sell

Phase 3 Market is bottoming out Very little developments take place Investors show patience & play a waiting game There are bargains to be grabbed in the market Price concessions stabilize Little activity in the market Phase 4 - Growth This phase is market by a growing economy, expanding businesses, new developments & increase in prices i.e. increase in demand Number of Building approvals increase Excess supply is consumed and demand for new developments increase Interest rates fall New buyer become active Where is Melbourne according to the property clock? Before we answer this question, we must understand that Melbourne is an extremely large property market and is made up of various councils and suburbs & pockets. Each of these pockets has their own dynamics in play and must be looked at independently, rather than as a whole. Recently it has received a lot of negative press, mainly due to Victoria not being part of the resources boom. However, when you look at individual suburbs in Melbourne, they tell a different story. State of Market Oversupply of house and land packages - New and developing outer suburbs, specially in WEST and NORTH particularly in first home buyer category Oversupply of luxury More demand for property between $500,000-$900,000 Inner and MiddleRing suburbs CBD oversupplied with apartments this will push prices for apartments and their rentals yield downwards There is wealth to be generated in every market.

Signs of Improvements

4th March 2013 Property Observer Analysts are growing more confident of a sustained recovery in the property market following yet another strong weekend of auction clearance rates, with over two-thirds of residential properties selling at auction in Melbourne and Sydney. Both markets are operating at levels closer to numbers of the boom period in 2010. Confidence builds its own momentum and its off and running, but the full picture will be revealed come Easter. Both Melbourne and Sydney are moving in the one direction, indicating there is an underlying driving force. Low interest rates are generally fuelling both housing markets.

3rd March 2013 Australian Property Monitors Sydney and Melbourne auction markets this weekend continued the strong performances recorded so far this season despite rising listing numbers. Both markets are exhibiting early season buyer momentum well in advance of the results recorded over the same period last year. Melbourne also reported another encouraging clearance rate this weekend. Melbournes 65.8% followed last weekends rate of 71.6% and reflects continuing solid market conditions. 1st FEB 2013 RP Data Rismark Five of Australias eight capital cities have shown continued growth in their housing markets in February, following the mild recovery of 2012, according to Februarys RP Data Rismark home value index. RP Data says Melbourne, Australias second largest housing market, largely drove the monthly result with dwelling values up 1.5% with even stronger growth at Canberra (up 1.9%) and Darwin (up 2.3%). 31st Jan 2013 Australian Property Monitors Australias housing market bounced back as expected in 2012 with the median house price rising by a solid 2.1% over the year. All capital cities recorded growth in median house prices over the December quarter for the first time since the March quarter 2010. Solid house price growth was reported by most major capitals over the quarter with Sydney up by 2.0%, Melbourne up 2.4% and Perth up 2.5%. 26th Jan 2013 Herald Sun - Real Estate Institute of Victoria figures show the citys median house price rose 7.8 per cent in the December quarter - the biggest three-month gain since the market peaked in 2010. It follows a 16 per cent jump in sales, compared with the same time in 2011, as buyers went Christmas shopping after interest rate cuts. 22nd October 2012 Australian Financial Review - reported, Sydney and Melbourne property markets are showing signs of strength, with auction clearance rates remaining above 60 per cent. The solid clearance rate bodes well for the depressed Melbourne market, ahead of next Saturday when 1200 properties will be auctioned compared with the past weekends 656. It will be the most auctions in Melbourne in a single weekend since December 2010. October 2012 - National Property Buyers RPData have already confirmed that increases to capital city medians are starting to affect market conditions. Several of our cities are showing moderate signs of recovery, with the surprise result being Melbourne, which experienced a 4 per cent rise in its median house price between May 2012 and September 2012.

Now is the right time Melbourne at 6 OClock in property market, which is the same as Phase 3 of property cycle i.e., all signs indicated that Melbourne market has bottomed out and is now starting to recover. Recent Data from HIA (House Industry Association) indicates building approvals in January 2013 fell for a second consecutive month and dropped back below the 13000 mark. This and all other factors indicate that Melbourne property market has bottomed, which should ring alarm bells for developers, as there is no better time to develop. If you are developing in an established area, close to transportation, close to shopping centers & close to schools in a well researched area, there will always be demand for that newly developed townhouse. You can enjoy greater rental yield as house affordability is becoming a serious problem, which is further driving the rental yield up.

In Essence Income producing residential property is the best long-term investment for wealth generation. Residential property unlike commercial does not loose its value if it is vacant. Residential properties have weathered GFC (Global Financial Crisis) and are still the top choice as investment properties. If you have chosen residential property as your wealth-building vehicle, then property development is fuel that can accelerate the process. Develop Refinance Extract Equity Repeat To be successful in property development, you need Time; Money & Knowledge & Positive Property Pro can help you in all three aspects with various strategies and unbiased advice.

Positive Property Pro can certainly help you only if you are ready to take the next step towards financial freedom or if any of the following criteria matches your situation: You have land with development potential. You always wanted to develop, but are short on either time, knowledge or do not have an experienced team on your side.

You want to sell the land, but would also like a share in profit if someone else developed it. You have access to equity that you would like to reinvest. You would love to live in a new house, but currently live in an aged house with a big backyard.

You have land/property with zero or negligible mortgage, but no cash to develop. You are looking to invest in property, but not sure if this is the right time to buy, as capital growth in Melbourne is hard to achieve. Through our model of acquiring property at cost, you can instantly achieve capital growth, re-access that capital & reinvest again.

You would like to bullet proof your retirement against the ever changing economic conditions, so when you live up to a 100 years (which by the way now is a very possible reality), you have enough wealth to last you through your retirement & more to leave behind as your legacy.

If your situation rings true to any of the above scenarios, please call me now on 0488 998 072. I would be pleased to provide a rough assessment of the potential of your land and explain how I could achieve for you a substantial positive outcome. You can also reach us via our website http://www.positivepropertypro.com.au | Contact Us

Disclaimer Any financial, taxation or investment information provided during this presentation/article is of general nature only. Before making a decision on the information presented or discussed at this presentation & or article, report, you should consult with your own independent financial advisor and or accountant to assess whether the advice is appropriate to your objectives, needs or personal situation. Persons may wish to make this assessment themselves or seek the help of an adviser. No responsibility is taken by the writer/presenter or Positive Property Pro (Masava Pty Ltd) should you decide to act on the information provided. Although the information is provided in good faith, it is also given on the basis that no person using the information in whole or in part shall have any claim against the presenter or Positive Property Pro (Masava Pty Ltd). You here by declare that you understand that you are solely responsible for acting on the information provided & that you have consulted the appropriate authority in the subject matter, before acting on the information. Positive Property Pro (Masava Pty Ltd) and its presenters/ writers are not Accountants, Tax lawyers or financial planners.