PROPERTY INVESTMENT REPORT

‘SHERWOOD GREEN ESTATE’

100 KENYONS RD, MERRYLANDS WEST

KEY INVESTMENT
FEATURES ...

• Unique
development

• Surrounded by
established trees

• Close to transport
schools, shopping
and cinema com-
plex

• Stanless steel
appliances including
dishwasher

• Split system air

Merrylands is renowned for being one of the greenest suburbs in the West of conditioning
Sydney. ‘Sherwood Green Estate’ is even more distinctive because of its
established trees and grounds which create one of the areas most exclusive • Security panel-lift
door to each garage
‘new’ yet established, living environments.
• Intercom main
This unique development features 59, 2, 3 & 4 bedroom townhouses. All state
entry door
of the art inclusions, security lock up garages and courtyards.

Townhouse developments in Merrylands are rare. Consequently, new townhouse developments are highly
sought after by both owner occupiers and
investors.
These luxury Townhouses range in size from
108-124 sq mtrs internally with large gar-
den courtyards ranging from 78-325 sq mtrs
with double garages at basement level.

3 bedroom townhouses in ’Sherwood Green’

range from $440,000-$497,000 with
expected rental between $420-$450 per wk.

Investors borrowing 100% of purchase price

of $440,000 at a rental of $430 per week
may hold a 3 bedroom townhouse in
’Sherwood Green’ for an expected after tax
cost in year one of approximately $144 per

Quartile Property Network Investment Report - (02) 9499 4999 ‘Sherwood Green Estate’
PROPERTY INVESTMENT REPORT ‘Sherwood Green Estate’

Educational Institutions Local Services

Merrylands High School 0.5 km Merrylands Police Station 1.6 km

UWS Parramatta Campus 3.5 km Merrylands Post Office 1.6 km
Merrylands Library 1.8 km 24 Hour Medical Centre 2.1 km
Cerdon College 0.1 km Stockland Mall Shopping Centre 1.6 km
St Margarets Primary School 1 km Merrylands Fire Station 1 km
Merrylands Primary School 0.7 km Westmead Hospital 3.8 km
Parramatta CBD 3.7 km

Transport Facilities Recreation Amenities

Merrylands Train Station 2 km Merrylands RSL Club 2 km

Great Western Highway 2.2 km Merrylands Bowling Club 1.2 km
M4 Motorway 2 km Parramatta Golf Course 3.2 km
Liverpool-Parramatta T-Way 0.3 km Merrylands swimming pool 0.8 km
Central Gardens 0.7 km
Merrylands Sports Ground 0.8 km

Sydney
INCOME & EXPENDITURE (Year one)
The investment scenario for Sydney is
improving on an almost daily basis. The Estimated Annual Rent
market peaked almost 4 years ago, and @ $430 per week $22.360
has stabilised over the past 24 months.
Importantly, rental yields are returning to Estimated Annual Expenditure:
acceptable levels and are set to improve Vacancy (3%): $ 671
significantly over the period ahead as the Rates: $1500
Insurance: $ 300
rental market responds to a rapidly
Maintenance: $ 220
declining rental vacancy rate. We are of Management: $2262
the opinion there will be a substantial Body Corporate: $1800 $ 6,753
increase in rents over the next 3 to 5
years.
Estimated Net Return $15,607
The supply of new building has fallen
Purchase Price: $440,000
away dramatically over the past 4 years
Gross Yield: 5.08%
and building approvals are at levels not Net Yield: 3.55%
seen in 17 years (Dec 1990). This
provides a clear indication that an already Estimated Non-Cash deductions:
undersupplied market is going to become
Plant & Articles Depreciation: $4239
even tighter over the period ahead. The Building Allowance @ 2.50% $4993
time has arrived for counter-cyclical Borrowing Costs: $ 964
property investors to start selectively
taking advantage of these conditions.

Quartile Property Network Investment Report - (02) 9499 4999 ‘Sherwood Green Estate’
PROPERTY INVESTMENT REPORT ‘Sherwood Green Estate’

INCOME & EXPENDITURE (Year One)

Assumptions:
Purchase Price $440,000 Interest Rate 7.76%
Loan $459,381 Building Allowance 2.50%
(inc. stamp duty, bank & legal costs) Marginal Tax Rate 41.5%
Cash deposit $0 Inflation Rate 5.0%
Growth Rate 8.00%

TAX POSITION SUMMARY (year one)

Income:
Rent per week $ 430 Gross Rent per annum $22,360
Gross rent per annum $22,360 Total Tax Deductions $52,597
Tax Surplus/Deficit ($30,237)
Cash Expenses:
Tax Saving/Refund $12,548
Loan Interest $35,648
Property expenses $ 6,753 Annual After Tax Cost $ 7,493
Net Cash (before tax cost) ($20,041)
Weekly After Tax Cost $ 144
Non-Cash Expenses:
Borrowing Costs $ 964 * At a tax rate of 31.5%, the weekly after tax cost is
approximately $202 per week.
Building Allowance $4,993 * At a tax rate of 46.5%, the weekly after tax cost is
Depreciation - plant & articles $4,239 approximately $115 per week.

Total Tax Deductions $52,597

TYPICAL FLOOR PLAN

THE RENTAL MARKET

Subject to normal market fluctuations, we are of the

opinion that 3 bedroom townhouses in ‘Sherwood Green’
should rent at $430 per week.

$430 per week would generate an annual rental income

of $22,360 p.a.

A vacancy factor of 3.0% has been allowed in property

expenses in the above cash flow. The gross rental yield,
which is calculated by dividing the total annual rent into
the purchase price, for ‘Sherwood Green’ is 5.08%.

PROPERTY INVESTMENT MANAGEMENT

Successful management of the investment property requires specialised knowledge. Quartile Property
Network has specialised in managing investment property throughout Australia for over 50 years. We are
committed to ensuring our clients investments perform as efficiently as possible. Quartile is able to manage
your ’Sherwood Green’ investment for standard management fees.

Quartile Property Network Investment Report - (02) 9499 4999 ‘Sherwood Green Estate’
 PROPERTY INVESTMENT REPORT ‘Sherwood Green Estate’

TAXATION BENEFIT

Residential property held for investment purposes may

attract substantial taxation benefits.

This property, at a marginal tax rate of 41.5% shows

an annual tax saving of $12,548 in the first year of
ownership.

Under the Taxation Act taxpayers may have regular

group tax installments reduced immediately, utilising
the tax saving to minimise the holding cost. The chart
shows both before and after tax cash flows based on
the previous assumptions over a 25 year period.

CAPITAL GROWTH

A ‘Sherwood Green Estate’ property acquired at a price

of $430,000 funded by 100% borrowings (including all
acquisition costs) and escalated in value at 8% per
annum compound shows substantial equity growth
over a period of time.

If principal and interest borrowings are used the equity

would be greater as principal decreases, however an
interest only loan may be more cash flow and tax
effective.

IMPORTANT

Cash flows and other projections for this property

should be prepared based on your personal tax rate,
levels of borrowings etc. This is strongly recommended
before a decision to purchase is made.

CONTACT
Quartile Property Network
Level 2, 802 Pacific Highway Gordon NSW 2072
Telephone: (02) 9499 4999 Fax: (02) 9499 4222 Toll Free: 1300 650 650
A Division of Quartile Marketing Pty Limited ABN: 93 054 364 500 Incorporated in New South Wales

Disclaimer: Quartile Property Network (“QPN”) and its related businesses make no representation and give no warranties as to
the accuracy of the preceding information and does not accept any responsibility for any errors or inaccuracies in or omissions
from the information contained therein (whether negligent or otherwise) and QPN shall not be liable for any loss or damage
howsoever arising as a result of any person acting or refraining from acting in reliance on any information contained therein.
No reader should rely solely on the information contained in this report as it does not purport to be comprehensive or to render
specific advice.

Any prospective investor should consider their personal circumstances when assessing the suitability of investment property.
Prospective investors should make independent enquiries to confirm relevant details as well as consult their professional advisers.

This disclaimer does not purport to exclude any warranties implied by law which may not be lawfully excluded. QPN is a licensed
real estate agent (Licence No. 806551) and, as such will receive commissions paid by the vendor on the sale to a Quartile client of
any property described in this report.

Warning: The advice contained in this report is general advice and its preparation has not taken into account any person’s
circumstances, objectives, financial situation or needs.

An intending purchaser should assess the suitability of any investment in property in light of their own needs and circumstances
which they can do themselves or by consulting an appropriately licensed financial adviser and/or taxation specialist.

Quartile Property Network Investment Report - (02) 9499 4999 ‘Sherwood Green Estate’