Nadia & Abbas – Doctor

Client & Project Details

Greenline Realty aims to provide our clients with cash flow positive properties that will outperform market.

Greenline Realty is committed to helping everyday Australians achieve their financial freedom through strategic property investment. We save our clients time and money, fast-tracking their results, with rigorous research and tailored property wealth planning.

Client

The clients were introduced to GLR from a mutual friend looking for guidance on increasing their property portfolio. 

They work as doctors and earn very good salaries however were unsure how to best maximise their funds.  Their current circumstances were, they originally lived in SA and purchased a family home.  After a few years they moved to North Queensland and purchased their new family home.  They converted the original SA home to an investment. 

Over the years they continued working and saved their excess funds.  They first accumulated enough to completely offset their family home and then continued to offset their SA investment property. 

The clients did very well to remove the debt however as a result they had even greater incomes that had no tax benefits.  This combined with the high incomes meant they were paying very high taxes each year with no gain.  As both the properties were intended to be family homes, they felt the growth across the properties each year was low and felt they could do better. 

Goals

The clients love property and want to establish a large portfolio that can be passed onto the children.

They also may potentially move to a larger city and understand the more they can accumulate now the greater the home can be in the future. 

They would like to reduce their yearly tax bill by incorporating assets

Strategy

The objective of the strategy was to utilise their current resources to leverage into further property investments.   In order to understand their opportunities, we first established the clients’ borrowing capacities.  Once we had a clear understanding of their borrowing power, we reversed engineered the portfolio to establish the purchase price of the investments, the acquisition costs and subsequent cashflow analysis on a yearly basis.

The strategy was formulated to show the clients their potential in acquiring 2 more investments properties.  It outlined the purchase price, government charges and additional costs.  How these costs would be funded plus the yearly running costs associated with the new investments.  It then looked at the overall performance and future growth from the assets.  A bonus was the strategy utilised tax strategies which allowed the clients retrieve the entire out of pocket costs each year. 

The next part of the strategy was to correct the client’s superannuation.  They had a SMSF created, and the funds were rolled into the account with no action.  The strategy followed a similar process and identified a purchasing capacity and yearly running cost. 

The clients approved the strategy and were very happy to implement. 

Results

The clients were introduced to the property team who eventually sourced 3 investment properties for their portfolio.  The implementation was done 1 at a time and within a 7-month window, the clients had approved and settled the 3 investments.  2 were supplied in their personal names and 1 was for their superannuation. 

The 2 investments provided in their personal name were within QLD and VICTORIA.  They both were completed properties that settled within contract timeframes.  Both properties were rented immediately and slotted into their portfolio. Based on the investment benefits the properties provided a net tax benefit that was above the yearly costs of the investments therefore the properties had zero out of pocket costs yearly.   

The 1 property inside their superannuation was under construction, purchased as an off the plan purchase.  The deposits were paid and subsequently the investment was purchased once completed.  Again the property was rented out pre settlement.  The fund produces a yearly surplus which was redirected to the mortgage and allows the clients to pay of the investment within 6 years. 

The clients were very happy with the stream line process and felt on track for their next years ahead.