Money Australia — May 2017

Charter Hall Direct Property Management Limited (“CHDPML”) (ABN 56 073 623 784, AFSL 226849) is the responsible entity and the issuer of units for the Charter Hall Direct

Industrial Fund No.4 ("DIF4") (ARSN 615 152 817). CHDPML has issued a product disclosure statement (“PDS”) for DIF4, which sets out the offer to apply for units, and is available

at http://www.charterhalldirect.com.au or by calling 1800 917 212. CHDPML and its associates will receive fees if you invest in DIF4, which are set out in the PDS. This information does

not constitute an offer for the issue, sale or purchase of any securities, or any recommendation in relation to investing. It does not take into account any particular investors’

objectives, financial situations or needs. If you are considering an investment you should read the relevant PDS in its entirety and seek appropriate professional advice. Applications

for units can only be made under the application form in the relevant PDS. Past performance is not an indicator of future performance. *Forecast average distributions for the initial

portfolio of 6.5% per annum over the period from 1 November 2016 to 30 June 2017 (annualised) and the subsequent financial year to 30 June 2018.

Enjoy a strong

6.5% pa* income

return with

Charter Hall Direct

Industrial Fund No.4

Direct your investments here

16.7 year

average lease term

100%

occupied

6.5% pa*

income return

Talk: to your professional adviser Visit: charterhalldirect.com.au Call: 1800 917 212

For a stable investment that delivers high-yield, tax-effective returns,

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Q

Mywife(24)andI(26)have

hadourhouseforaboutayear

now.Ourmortgageis$375,000,

withapersonalloanof$23,000and

acarloanofaround$15,000.Ihave

three questions: 1. Should I pay off the

personalloanandcarloanbeforeIeven

think of investing? 2. Is Defence Housing

Australiaagoodinvestmentoption?It

gives you guaranteed rent for six to 15

years and the homes aren’t all that old

so they don’t require renovations. 3. The

housewearecurrentlylivinginisina

prime development area. The property

next door recently sold and is having

fourtownhousesbuiltonit.Ontheother

side we have an elderly couple with a

hugeproperty.Isitagoodideatosecure

that land when it goes up for sale? Is it

Michaeliskeentodevelopapropertybut...

Pay off the loans first

possible for a young couple like ourselves

todevelopsuchaproperty,includingour

land,orisitsomethingwhere you need a

lotofmoneybehindyou?

CrikeyMichael,I’dneedmostofthisissueto

giveyouacompleteanswer!First,ifthose

loanswereataroundthehomemortgagerate

of 4%, I’d be in no hurry. But my guess is they

are closer to 9%, maybe more. If so, personal-

ly, I’d be clearing high-interest debt.

DefenceHousingAustraliaisanoptionfor

you but you would want to be sure the prop-

ertyisinagrowthlocation.Thattakesmeto

question3.Hereyouhelpmealotwiththe

wordsthatyouareina“primedevelopment

area”–clearlythisisarealpositive.Butlocal

developerswillknowthis,soIassumethe

land next door will not be cheap. I imagine you

would

need

access

to over

$1 mil-

lion after

buying the

land to develop

four townhouses, so

thisisabigdealforayoungcouple.

Sure,itsoundsasifitwouldworkifyouman-

aged to get the land cheaply and had access to

capitaltobuild,aswellasthetimeandskillsto

make this happen.

I appreciate it is not a very exciting option

but you are young, only just in your new house

and you have $38,000 in the car and personal

loans. My preference is to get stuck into these

but do pay off the highest-interest loan first.