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ISSUE:Summer 2012/2013

POSITIVE CASHFLOW$100,000 Pasive Income

SELF MANAGED SUPER FUNDS$3,375,000 Retirement Nest egg of 9 properties achieving $2,575 /wk rent

MORTGAGE REDUCTIONPaid their home off in 6 years

▲ POPULATION+1.5% growth MAR 2012 (22.5M)

▼ UNEMPLOYMENT Rate reduced to 5.2% in JUL 2012

(USA at 8.3% & EU at 10.4%)

▼ VACANCY National rate reduced to 1.8% in 2012 (suggests housing supply

levels may not be as bloated as some have suggested)

▼ INTEREST RATES RBA lowers the interest rates to 3.25% (avg loan repayment is

reduced by $50/month)

Blue Ribbon Brisbane, Never-to-be-built out Water

Views 1.2km to the CBD

Dual Income Creates Positively Geared House

& Land in Hotspot

Hotspot & Positive Cashflow With Gross

Rental Yield of up to 10.7%

Hi Investors,

There’s nothing more satisfying than looking back over the past decade and realising that an idea started by Co-Founder Jason Whitton and myself in 2003, has now exploded into a leading multi-million dollar property investing company that helps thousands of every day Aussies understand and get fantastic results from property investing.

Today, Positive Real Estate is one of the longest standing property investing companies, with almost 10 years experience in delivering the most up-to-date property investing advice and profitable investment opportunities to over 30,000 Australians. In 2011 we launched in New Zealand as well!

Our team and clients are called upon month-in and out by reputable industry media publications to provide unbiased advice, cutting edge commentary and educational content and we are widely recognised for unveiling crucial hotspot locations before the crowds move in.

We pride ourselves in giving our clients direct access to some of the most experienced and specialised professionals in the property industry and also run hundreds of complimentary, practical workshops, designed to help interested investors safely build profitable portfolios.

Every investor I have ever come across has always started their investment journey with solid intentions of building wealth for their family, retiring on a passive income and having the security of a solid asset base. The sad fact is, however, only around 2% of investors ever reach financial freedom and attain the riches property investing should provide.

At Positive Real Estate, we know that education and surrounding yourself with a team of experienced investors is the key that unlocks the door to reaching this 2% club. That is exactly why we established our national Lifetime Mentoring Program.

Take a read through the pages of this booklet and you will find numerous stories of our clients, just every day people like you and me who have achieved extraordinary results through property.

You will also discover practical tips and strategies that will safely take your property portfolio to the next level while by-passing some of the most common investor mistakes.

If you are interested in positive cashflow properties, creating a passive income, tax tips, how to pay your home off fast and how to safely build a multi-million dollar portfolio, then keep reading. Happy investing and I look forward to seeing you at one of our future events.

Property Millionaire & CEO of Positive Real Estate

A Word From Sam Saggers,

Sam Saggers CEO Positive Real Estate

LESS STRESS. MORE RESULTS.

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Brochure provided by Positive Real Estate, Corporate Licence 1217226

Please view our legals and licenses on www.positiverealestate.com.au

Positive Real Estate is one of Australia’s longest standing and largest total solution property investmentcompanies. We are constantly sought-after by the nation’s leading media organisations to offer expert advice on the Australian property market as well as providing them with numerous client success stories.

In The Spotlight___

Page 4

MENTORING

REMEMbER this:“During any one-year, three-year or five-year period, you can dramatically change your life. You can make the next decade enormously different to the previous one, but only if you choose to.” sam saggers - CEO of Positive Real Estate, Property Millionaire and Expert Property Commentator

Our Expert Private Investment Analysts will Mentor You and Offer Step-by-Step Guidance to Property Riches!

Ask any property millionaire how they achieved their goals and they will tell you they had a mentor. Someone to learn the ropes from, bounce investment decisions off and hold their hand through the often-complicated or unfamiliar process. Sooner or later, all investors will face roadblocks, be uncertain about an important decision, feel com-pletely frustrated or throw in the towel before they reach their desired result. Worse still, some people never start their investing journey because they don’t even know what the first step is. In fact, only around 2% of investors will ever reach financial free-dom and attain the riches property should provide.

EvERYonE WHo Is a suCCEss In LIfE Has a mEntoR!

as proud supporters of Room To Read we have raised over $118K and built 4 schools

that is exactly why the Lifetime mentoring Program was designed to:

1 Equip you with the knowledge you need to find the best possible properties for you portfolio.

2 Help you develop a personalised investment plan/strategy to keep you on track to achieving you goals.

3 Offer expert support and guidance every step of the way so you never feel out of your depth.

4 Take the stress and time out of investing by having our team research, find and negotiate the best investment opportunities in Australia including HUGE

discounts, positive cashflow, strata, sub division, off-the-plan, house & land deals and add-value granny flat/ renovation strategies PLUS more.

We realise how easy it can be to lose sight of your goals, become pre-occupied with everyday life and just keep plodding along without realising you could be getting much bigger results. Find out everything you need to know about Australia’s leading Lifetime Mentoring Program and take your first step towards a positive and secure financial future.

Join us NOW and receive a ‘100% success Guarantee’ We guarantee that during the first two years of the joining the program you will have created, generated or saved at least double the amount you invested to join the program. (*Conditions apply)

find out more about our Lifetime mentoring Program NOW by typing in www.positiverealestate.com.au/fr/mentor

INVESTOR SUCCESS STORIES Read more on page 9

FACt: The average client in Positive Real Estate’s Lifetime Mentoring Program buys 2-3 properties in their FIRST YEAR of joining! Start a proactive journey towards your future wealth now. Achieve financial freedom SAFELY and get biGGER results FAstER with a Private Investment Analyst and expert support team to guide, motivate and train you on your property investment journey.

to BooK YouR onE-on-onE aPPoIntmEnt Go to WWW.PosItIvEREaLEstatE.Com.au/fR/mEntoR

MENTORING

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Page 5

Page 6

the sad reality is that a $500,000 superannuation nest egg will not provide a comfortable retirement for most Australians. In fact, most of the nation’s super will hardly sustain them for two years!According to the Association of Super Fund Research, a couple will need around $55,000 per annum for a comfortable lifestyle during retirement. This means you will need approximately $500K if you are entitled to the full retirement pension and if you are self-funded, you will need around one million dollars in your super fund to generate this kind of money.

sound scary? absolutely! Especially if retirement is

only a few years away.Recently it was found that women aged 55 to 64 years were estimated to have an average superannuation

balance of only $54,500, with average male superannuation balances at just $113,200, (Source: University of Canberra’s NATSEM unit).

Retirement can be scary without the right planThe good news is it is very pos-sible to retire in a position where you can have the savings you need to live, without depending upon a government pension or allowanc-es. How? Property investing. Whether your retirement is two or ten years away, there are some excellent benefits associated with investing in property using your Super, which is where we come in. Our specialist team in SMSF plan-ning with property can help you fast track your retirement plan and start investing strategically in prop-erty using your Super for a secure and wealthy retirement.

CAsE studYInvested in 2 Properties in her smsf in 6 months Positive Real Estate Client, Susan Flux had dreamed about prop-erty for years but had been held back from purchasing by her own fear. At 53 she has finally taken the plunge and has subsequently bought two properties within just six months in her SMSF. Su-san is powering on, buying three properties in 18 months and has no plans of stopping soon. “I was brought up with a strong belief that you pay for everything outright – you have the money and pay for it straight away, rather than borrowing,” she says, explaining that this perspective made the idea of taking on multiple mortgages a difficult one to swallow.

Susan today is a changed woman and has reignited her passion in property and belief in herself. Her goal is ten properties within her SMSF for the tax advantage and retirement peace of mind. She explains, “It’s partly about being able to fund my lifestyle when I can no longer be in an office working for an employer.” And with so many opportunities Australia-wide, she doesn’t see any reason for her to stop buying just yet.

How to Invest in Your Self-Managed Super Fund (SMSF) for a Secure Retirement on a Passive IncomeThe thought of retirement is often associated with relaxed long days of reading, travelling, time with friends and family, giving back, and a secure and happy life. A reward for all your hard years working.

Take back The reigns!

What are the key benefits of investing in property using your SMSF; 1. You can borrow up to 80% of the property value and have the remainder funded from your superannuation. 2. Pay zero capital gains tax and ZERO income tax on rent once in retirement.3. A clever way to reduce taxes: Pay down your property using your compulsory super contributions and any salary sacrificed funds will potentially only attract a 15% tax rate – instead of up to 46.5%.4. Save hundreds of thousands in interest costs and pay off the loan in half the usual time.5. Fund your next investment property without using any personal income.

Join us at our next event and receive the making super sexy ebook. INFORMATION PROvIdEd BY SEqUOIA SUPERANNUATION PTY LTd.

Page 7

Most have us haven’t realistically thought about this, but many Aussies give every cent they earn on Monday, to the

taxation department (No wonder we all hate Mondays). If you’re in a high-income bracket, then you’re potentially handing Tuesday’s and half of Wednesday’s pay straight to the ATO as well! for some of you that’s almost half of your wage handed over to the taxation department each and every week! The good news is, with a more strategic way of managing your finances and taxes, you could almost double your pocketed income… without having to ask your boss for a pay rise!

Positive Real Estate are specialists in helping clients use property as an investment vehicle to legally and dramatically reduce the tax they pay – with many of our investors using our expertise to pay ZERO tax!

4 Quick Tips to Start Reducing your Tax:

Organise a a PAYG variation and claim your tax entitlements as soon as you get paid i.e. weekly,

fortnightly or monthly, instead of claiming at the end of the year. This immediately adds extra cashflow to your pay packet and increases your serviceability, allowing you to buy more properties and move forward easier. (Remember the ATO doesn’t pay you any interest!)

Put your reclaimed tax money straight back into your loans. This reduces your interest payments

each month and takes years off your loan.

Claim everything you are legally entitled to. Invest in a professional depreciation schedule

and find an accountant who specialises in investment property. Too many investors are missing out on thousands of dollars in tax refunds just because they don’t know what they can and can’t claim.

Invest in secure and profitable properties that match your personal financial situation. Take

advantage of the HUGE tax incentives available for property investors, whereby the money you would usually be forced to pay in tax can legally be used to service your property investments and help you build wealth for the future.

Zero taxes. Interested in finding out how it’s possible - or more specifically, how YOU can pay NO taxes? We’re talking about a smart money management plan designed to keep more of your money where it belongs - in your pocket!

Get Your Taxes Potentially to Zero

Find out more about how a depreciation schedule with a PaYg variation can reduce your tax and improve your cashflow and serviceability. Find out how you can start to take proactive steps towards paying less or even NO tax! Find out how to invest your money directly into

your property portfolio, instead of handing dead money over to the aTO each week!

It doesn’t take a lot to get started - just an interest in changing your financial future and a visit to one of our complimentary Property Investor Nights,

where you will learn smart money management strategies which can help you, among other things, cut your taxes - maybe even all the way to zero!GO TO: www.positiverealestate.com.au/Fr/taX

Tax information provided by Lee & Lee Accounting Page 7

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Save 15 Years of Mortgage Repayments and Own Your Home Debt Free!Why spend 30 years with bad debt hanging over your head when you can pay it off in less than half the time and save yourself thousands of dollars in the process?

Did you know that each and every day, your bank is probably bleeding you dry? If you keep paying your loan off the “traditional way” you could be stuck with a 20-30 year debt sentence!Unfortunately, the majority of Australians never learn how to effectively manage their finances and instead of eliminating their bad debt and building wealth, they live week to week and often spend more than they earn.

What if we told you that it is possible to pay off your home loan in half the time or even less? Would you be interested in finding out more? What if we also told you that you could buy 2 or even 3 investment properties to build your wealth at the same time you’re paying off your home loan?

It is possible and we have seen hundreds of clients do this exact thing. Check out Duncan and Penni’s success story on page 11.

To take control of your financial future and slash your bad debt, there are a number of tactics you could employ depending on your personal situation. Below are a few simple ideas to consider.

Set your loan up as interest only and set up an offset account (also known as redraw). This gives you control of your money and also allows you to lower your interest repayments by putting any extra money you have against your home loan. The compounding effect over a period of time is massive - even Einstein was amazed at compounding interest, declaring it to be the “Eighth Wonder of The World”.

Have your salary and any extra money put directly into your offset account rather than your bank’s savings account. Since interest is calculated daily, you’re saving yourself interest just by having that money sit in your offset account.

Take advantage of the 55-day interest free period that many banks offer on credit cards. direct all your income into your offset account and use your credit card to live and pay all the bills within the 55 days. Then at the end of that period, the money comes back out of your offset account to bring your credit card debt back to zero. By having the extra income sit in your offset for the 55 days, your interest repayments will be reduced, allowing you to pay your home off sooner.

Build a strategic positive cashflow portfolio structured specifically to eliminate bad debt quickly.

Come to our next Complimentary Property Investor night and let us show you how to pay your home off in record time. Credit Representative Number 388095 ABN: 22140317773

CASE STUdY

Apositive cashflow property puts money into your pocket be-fore tax. All costs (expenses and mortgage repayments etc.) are covered by the rent and there is still money left over.

The good news is that it is possible to turn a negative cashflow portfolio into positive cashflow. There are multiple ways to do this, such as ensuring you have the right loan product with a split facility, performing small cosmetic renovations to boost your rental return or even recycling equity could solve the problem. Without cashflow it is extremely hard to move forward and of-ten means your portfolio will become stagnant. It also means you will personally be out of pocket for all of your portfolio’s short-falls – say goodbye to steak dinners and hello to baked beans!

Positive cashflow property is more common than you think, how-ever the reason you don’t often see them, is our clients typically snap them up before they are advertised in the public arena! We have clients earning over $100K in passive income from their property portfolio – want to know how?

You end up with a multi-million dollar portfolio. So can this really work? You bet it can! We show our clients all the time. When you have acquired your 10 properties, it then becomes time to consolidate – to decide which properties to sell and which to keep. If you own 10 properties you may decide to sell five with an aim to reduce your LvR and increase your cashflow to make your portfolio positive cashflow. The ultimate goal is to owe no mortgage debt with your properties now producing a passive income.E.g. 5 (unencumbered properties) x $500,000 = $2.5 million total value. Assuming a modest 5% rental return on each of these properties, your yearly passive income would be $125,000. We can show you exactly how to put this plan into place!BooK YouR sEat at ouR nEXt PRoPERtY InvEstoR nIGHt to fInD out moRE: WWW.PosItIvEREaLEstatE.Com.au/fR/CasHfLoW

The benefits of having positive cashflow in your property investment strategy are clear:

Positive Cashflow, Passive Income of $100K and Retire Early 1. The property PAYS YOU to own it (everyone loves passive income) 2. Your serviceability increases and makes you more attractive to lending institutions

3. It can take up the slack of other negatively geared, capital growth properties in your portfolio (it balances your portfolio)4. Low financial stress

Looking for the BEst positive cashflow opportunities across australia?

CAsE studY Living the Dream; $104,000 Passive Income!

10 PRoPERtIEs In 10 YEaRs What happens when you buy one property a year for the next 10 years?

Emma and her husband have achieved amazing success in property, amassing a property portfolio of 8 properties worth $3.993m dollars generating a passive income of $104,000 (positive cashflow) after all expenses. These two hardworking, very focused and dedicated people are Positive Real Estate clients. Funnily enough when chatting with Emma she explained, “The biggest hurdle for me was getting started and having faith in myself. I kept telling myself I wasn’t educated enough but I’d been to all these seminars and was doing what I needed to in terms of due diligence and I had done nothing. However once I started I couldn’t stop!”

Want to know more about how you too can create a passive income of over $100K or a multi-million dollar property portfolio like Emma and her hubby? Why not come along to one of our complimentary Property Investor Nights and learn the same things that this couple did to achieve their goals.

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Dual Income Creates Positively Geared House & Land! YIP magazine top 100 Investment Hotpsot 2012

• Price: Land $120,000 build: $355,000 total: $475,000• Appraised Market Rent: $380pw (House) - $280pw (Flat)• Gross Yield: 7.1%• Strategy: House & Land/ dual Income/ Positively Geared• Market Timing: Approaching Recovery• Growth Drivers: Close to the university, train station, major arterial highways, TAFE, local hospitals and Army depot/ Major corporation presence/ Population expected to increase by over 30% by 2031

• YIP Magazine Top 100 Investment Spot August 2012• SPI Magazine Fast 50 Investment Spot February 2012

• Dual income; house and attached 2bdrm dwelling on a large 687m2 block• HUGE 7.1% rental yields; positively geared by over $4,000 in year 1• Positive cashflow investment by year 2! (Estimated 5% annual rent increase)

RECEnt BEnCHmaRK saLEs $50K moRE

Blue Ribbon Brisbane, Never-to-be-built out Water Views1.2km to the CBD; a unique Pedigree

• Price: $360,000• Market Rent Potential: $430 - $530pw (unfurnished)/ $480 - $580pw (furnished)• Gross Yield: 6.7%• Strategy: Blue-chip (Waterfront)/ Capital Growth• Market Timing: Start of Recovery• Growth Drivers: Low vacancy rates of approx. 1.4% / Population set to grow by 800,000 from 2007 to 2026 (ABS)/ Walk to the CBd, James Street, Fortitude valley and CityCat Ferry• Fully furnished apartments on Brisbane’s most enviable stretch of riverfront • Showcasing never-to-be-built-out panoramic water and city skyline views

• Clients received exclusive access to the highest quality refurbished apartments in the most coveted positions • Extensively equipped gym, stunning pool and lawn area with exceptional sweeping views

WatERfRont WILL NEVER BE BUILT OUT

aPI magazine top 100 Hotspot Positive Cashflow PLus amazing Gross Rental Yield of up to 10.7%

• Price: 1bdrm $305,000/ 2bdrm $410,000• Market Rent Potential: 3 year fixed $620pw (1bdrm)/ $810pw (2bdrm)• Gross Yield: 10.2% to 10.7%• Strategy: Positive Cashflow/OTP Growth• Market Timing: Bottom of the Market• Growth Drivers: Huge infrastructure development of approximately $25B underway, with $400M slated for gentrification projects; population expected to increase by 61% over the next 20 years.

• Fixed lease for 3 years; positively cashflow from $3,000 p.a• No council rates, management costs or BC rates payable during the lease

• Huge gross rental yields of up to 10.7% guaranteed for 3 years! Blue-chip property that pays you to own it!• A coveted location in the mecca of the CBD; within metres of every conceivable amenity, including shopping, cafes and restaurants• Stunning designer apartments with quality finishes in a boutique complex with pool and bbq facilities and secure parking

mEGa HotsPotYIP toP 100 & aPI Hot 100

Page 11

Success Stories

brad & Kelly Paasthis savvy Young Couple amassed a Portfolio Worth $1.7 million spanning 5 properties! The Lifetime Mentoring Program has given them the knowledge, confidence and access to exclusive deals to explode their portfolio into the millions within a few years.

bridget Reesa million Dollar Portfolio in Just 15 monthsWithin just 15 months of joining the Lifetime Mentoring Program, Bridget owns 4 properties and has established a diversified million-dollar property portfolio throughout Australia. Confident and knowledgeable, she is now looking forward to building further wealth and financial freedom through property.

CONTACT YOUR PRivATe iNvesTmeNT ANAlYsTs NOWTO FiND OUT HOW YOU CAN sTART mOviNG FORWARD!www.positiverealestate.com.au/fr/stories Page 11

Duncan BuchananPaid their Home Loan off in Just over 6 Years and Built a multi-million Dollar PortfolioHead Coach duncan Buchanan puts into practice what he preaches, “You have to walk your talk!” he says. duncan and his wife Penni are both in their 30’s and have paid their mortgage off in just over six years whilst raising two gorgeous children. They have also used sophisticated strategies in multiple entities to invest in many properties Australia-wide.

Terry Clarkenine Properties and a Retirement nest Egg of $3,375,000To build his nest egg, Terry took advantage of the pre-negotiated discount properties from Positive Real Estate’s Investor Agency. As a member of the Lifetime Mentoring Program, he also benefits from the wealth of information and one-on-one guidance, and alongside his coach has planned well, to retire on a passive income.

“An investment in knowledge pays the best interest” - Benjamin Franklin

Positive Real Estate can take the stress out of your investing

Let Us show YoU how to:

1. Pay your home off in less than half the time2. reduce your taxes potentially to Zero legally3. replace your income in as little as 5 years4. retire on a passive income of $100,000/year 5. own over $3,000,000 of real estate (debt free)

HeLd aroUNd aUSTraLIa BooK YoUr SeaT aT

positiverealestate.com.au/fror CaLL

1300 365 886

Leave YouR cRedIt caRd at HoMe. It’S

all free

• In 9 years we have helped our investment community successfully invest in over half a billion dollars worth of property. (These clients lacked either the time or the expertise to locate and negotiate a good deal)

• We use tailored 1on1 support to help clients get started and navigate the minefiedofpropertyinvestingormoveuptothe2%ofthefinancialeliteclub. (Learn the secrets & loop holes used by the wealthy when it comes to tax, mortgage reduction, interest, cashflow, debt & retirement)

• 5% of Australians invest in property, but only 2% of them structure their investmentsproperlytoachievecompletefinancialindependance. (Source: ATO & ABS population numbers)

Get StaRtedfREE 2hR EduCatIonal sEmInaRs

saM saGGersCEO & Successful Investor for 15 years

quEEnSland - nEw SOuth walES - vICtOrIa - auStralIan CapItal tErrItOry - SOuth auStralIa - taSmanIa - wEStErn auStralIa - nOrthErn tErrItOry - nEw zEaland

Brochure provided by Positive Real Estate, Corporate Licence 1217226 Please view our legals and licenses on www.positiverealestate.com.au*Conditions apply, please refer to the website for more information. These scenarios do not take into account your personal circumstances, for more information on these results see the website. All information is of a general nature only and does not constitute professional advice. Please seek advice from licensed professionals about your personal situation. This information is subject to the disclaimer on www.positiverealestate.com.au/disclaimer

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