Newcastle and Hunter Region NSW Australia Property Investment Research

1. Property Overview
Hunter Region

2. Hunter Region
With a population of over 620,000, the Hunter Region is the largest
regional area in Australia and home to more people than the State of
Tasmania, the ACT or the Gold Coast. The region is the powerhouse of
the NSW economy and one of the powerhouses of the Australian
economy.
With business confidence at an all time high, it has emerged from a
largely coal & wine producing area to become a diverse industrial base,
employing workers over many sectors & benefitting from rapidly
growing infrastructure & commercial spending.

3. Property Selection
Our acquisitions team is strongly focused on providing the residential
investment property purchaser good quality investment properties, in
high capital growth corridors, with strong employment, strong rental
demands and access to public transport and amenities.
Infrastructure spending – current & planned
Population Growth & High Capital Growth potential
Strong rental demand with above average rental yields
Significant negative gearing & depreciation advantages
Spacious designs with low maintenance exteriors

4. Area Selection
With all the Property Selection aspects in mind we have identified the
following areas within the Hunter Region:
Muswellbrook
Cliftleigh
Cessnock
Rutherford
These areas satisfy the criteria of population growth, employment
growth, capital growth, rental yields above 5% p.a. & increased
infrastructure spending.

5. Muswellbrook - Map

6. Cliftleigh - Map

7. Cessnock - Map

8. Rutherford - Map

9. Projects & Infrastructure
We have identified the following Projects & Infrastructure within the
Hunter Region which we feel will influence property prices in the region.
The Hunter Expressway
Resource Sector
Solar Power Generator
Other Facts

10. The Hunter Expressway
The $2b project which is the Hunter Expressway will provide a 40km
dual carriageway with interchanges at the F3 Freeway, Buchanan,
Kurri Kurri, Loxford, Allandale & Branxton.
It is expected to reduce travel times between Newcastle and
Branxton by 28 minutes and relieve surrounding roads of between
15,000 and 30,000 vehicles per day in the areas around Rutherford,
Maitland, Thornton and Newcastle.
Construction will occur between 2010 and 2013 and will generate
around 2,500 full time jobs in the Hunter.
Improvements to infrastructure will see greater efficiencies in the
transport of agricultural and resource products to market.

11. The Hunter Expressway

12. Hunter Economic Zone
HEZ will be Australia’s largest continuous industrial zone providing
the ability to offer a home to large scale industrial occupiers,
previously forced to go to other states or overseas.
It is fully serviced by road, rail, power, gas, sewerage, water and
Powertel cable.
It represents the biggest injection of employment-generating capital
into the area in a generation.
As part of the State Government’s Lower Hunter Regional Strategy,
HEZ will be instrumental in the development of the Lower Hunter
Region and is expected to contribute up to 15,000 new jobs and
bring more than $1.1b to the local economy.

13. Resource Sector
$1.1b Mangoola Coal Mine Muswellbrook – one of the largest in
NSW.
$320m expansion of BHP’s Mt Arthur mine – increasing production
to 15m tonnes p.a.
Major expansion of coalfields in Gunnedah & Narrabri with a $580m
upgrade to the rail system between Gunnedah and Maitland.
Hunter Mines Authority predicts 25,000 new jobs to be produced in
the next 4 years.
In 2009 coal seam gas producers Santos & Eastern Star announced
negotiations with Newcastle Port Authority to build a liquefied natural
gas plant which will put Newcastle in a position to rival Gladstone.

14. Solar Power Generator
The Federal Govt. has announced that the Hunter Valley, with its
coal-fired power stations & CSIRO energy research centre, is ideally
placed for the Solar Research Scheme.
Liddell is home to a ‘demonstration scale’ solar plant that the
Federal Govt. described as a ‘very good example’ of what the Govt.
hoped to achieve.
The Federal Govt. is planning to build the world’s largest solar
generating plant – a $4.2b project which will be 3 times bigger than
what currently exists in California.

15. Other facts....
Largest coal export port in the world, produces 40% of Australia’s
aluminium & generates over 90% of NSW’s electricity.
Equine capital of the Southern Hemisphere.
Newcastle Airport traffic numbers have soared from 214,000 in 2003
to well over 1 million in 2009 – over $130m planned to be spent.
Manufacturing employs over 27,000 people.
Vineyards produce over 42 million bottles and over $200 million in
sales annually.
Two of the biggest Defence bases in Australia – Singleton &
Williamtown.
7 million tourists visit the region each year.

16. In summary – the numbers...
Area 4 Bed 2 Bath 2 Garage Expected Rental Yield
Priced from:
Cliftleigh $399,500 5.60%
Cessnock $408,950 5.30%
Muswellbrook $353,500 6.50%
Rutherford $416,950 5.50%
Plus – don’t forget the NSW Government changes to Stamp Duty for
constructing houses – no Stamp Duty payable for houses under $600K.

17. Disclaimer
Please note that the information provided in this presentation is general information only, is subject to
change without notice and should not be relied on as a substitute for legal, financial, real estate or
other expert advice. Whilst great care has been taken in its preparation, Property Sauce and its
subsidiary companies disclaims all liability and responsibility, including for negligence, for any direct or
indirect loss or damage suffered by any person arising out of any use or non-use of this document or
any information or material from it. Nothing in this presentation, including the comments and remarks
of the presenter, should be considered as financial or accounting advice.
This presentation may contain forward looking statements about the company’s or developer’s
developments and/or areas estimated performance, infrastructure, construction time, inclusions,
economic factors, loan products and other items, some of which are from third party providers. These
statements involve risks and uncertainties, and actual results may differ. The company assumes no
obligation to update any forward looking statements or information, which speak as of their respective
dates.
All information contained herein is gathered from sources we believe to be reliable. We have not
verified that every piece of information is accurate, and do not have any belief one way or the other in
its accuracy. We do not accept any responsibility to any person for its accuracy and do no more than
pass it on for discussion. The builders and/or developers represented reserve the right to make minor
changes to the developments to comply with local council or other guidelines.
All interested parties should make and rely upon their own enquiries in order to determine whether or
not this information is, in fact, accurate and suitable for their specific circumstances, needs and
objectives