Emporio Investment Report Test

National Rental Affordability Scheme
Apartment Description Rental Type Internal
2 bedroom apartment:
Type 1 – Dual Key
1 bedroom apartment
Type 2
2 bedroom apartment
Type 3
3 bedroom apartment:
Type 4 – Dual Key
2 bedroom apartment:
Type 5 – Dual Key
NRAS benefits to property investors:
〉 all the benefits of a traditional investment
property with added annual tax-free
Government incentives
〉 investors can apply property expenses, non-
cash deductions and allowances against a
lower assessable rental income, increasing the
gearing benefit
〉 more than 1.5 million Australian households
are eligible to rent NRAS properties, hence
vacancy risk is negligible
Property Investment Analysis Summary
Market Rent
NRAS
Market Rent
NRAS
Market Rent
NRAS
Market Rent
NRAS
Market Rent
NRAS
Size
(m 2 )
81
81
52
52
Balcony
Size
(m 2 )
8
8
11
11
Total
Size
(m 2 )
89
89
63
63
Parking
Spaces
The following assumptions have been considered when calculating the projected cash flow models.
71
71
104
104
86
86
9
9
9
9
7
7
80
80
113
113
93
93
〉 tenants are selected on their potential to be
good tenants and their capacity to meet strict
eligibility requirements
〉 in many projects – like 3 Emporio Place –
NRAS properties often deliver a cash flow
positive investment
〉 importantly, Self-Managed Super Funds
can purchase
〉 NRAS dwellings are private property – no
Government holds or caveats
2
2
1
1
1
1
2
2
2
2
Level 5
Price
Estimated
Weekly
Rent
$469,500 $490
$367
$285,500 $275
$206
$389,500 $375
$281
$534,500 $580
$489,500
$489,500
$434
$510
$382
Estimated
Annual
Rent
$24,500
$18,351
$13,750
$10,229
$20,000
$14,044
$29,000
$21,721
$25,500
$19,100
Projected Weekly
After Tax Cash Flow
Surplus /(Deficit)
Year 1
($38.89)
+$266.74
($21.28)
+$127.49
($36.07)
+$99.21
($26.10)
+$267.39
($39.81)
+$263.12
** Vincents Chartered Accountants Analysis
Assumptions: Loan interest (fixed) of 6.0%. We have assumed that income tax rates applicable to the 2012/13 financial year will not change over the period of the forecast.
Property Holder has $100,000 of other taxable income.
This report has been prepared for the general information of investors by using assumptions and estimates provided by the vendor to facilitate explanation. Vincents are not
economists and as such do not make any representations in relation to the capital or rental growth rate assumptions relied upon. It is made without consideration of the specific
details of the investors’ financial situation. Financial institutions lending criteria may vary in relation to differing properties and potential investors’ should discuss their situation
with a financial institution. Vincents Chartered Accountants does not accept any liability for the reliance placed on this information including results of any actions taken or not
taken on the basis of this analysis. No information or recommendation either express or implied should be acted on without obtaining specific advice from your
professional advisor.
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