Client Case Study

Purpose

Jeannie was starting out in the Australian property market and hadn’t yet accumulated enough equity in her portfolio to borrow against. Her need was to accumulate real estate over the long term and to capture as much capital growth as possible in the shortest possible timeframe. Given she had ample time to retirement age, accumulation was her focus and not passive income.

Situation

Our Discovery Session revealed that Jeannie migrated to Australia on a permanent resident VISA from the USA in 2019 and owns several rental properties back in her home country. Jeannie was daunted by the differences in the Australian property market and wanted to engage a local expert to guide her through the new processes and foreign nuances. It took Jeannie some time to finalise her citizenship in Australia, but once done she was ready to pounce!

Strategy

As part of our investment process, we sat down with our client in a Strategy Session and showed her how the numbers would look if she ‘Rentvested’. This strategy would allow her to live close to her work and not compromise on the lifestyle she had grown accustomed to. We showed her how she could achieve capital growth by selecting the right property in the right location. Not only would she also get great tax benefits along the way, but she felt comfortable knowing she wasn’t taking on any unnecessary risk. Property made sense to Jeannie.

Solution

We worked with Jeannie to finalise a pre-approval from an independent licensed finance broker in preparation for the upcoming purchase. Once Jeannie was on our Priority Investment List and we had established her comfortable purchase price, we were able to source a viable property solution to meet her needs. It didn’t take us long to source a 4-bedroom house & land package for $558,650 in a highly sought-after region. Another investor’s finance fell through, and the property came back on the market available for a quick sale. Jeannie moved quickly to snap up this bargain.

Outcome

Jeannie has completed her build and the estimated value of her property is around $200,000 above her purchase price – which represents a 35% increase in just 18 months. Given that the demand for this location has outstripped supply, the rental income has also increased to $750 p/w, giving our client a boosted yield of 7% (based on her original purchase price). Jeannie is the proud owner of a positive cashflow property that will cover her loan costs and make a tidy profit each week at the same time!