James & Susan – 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 have owned their home for the past 14 years. They earn a good salary and try and allocate as much as they can towards the mortgage.

They have 1 child who is now a non dependant.  They recently did major renovations to their family home and increased the mortgage to $488,000.

Their home is worth approximately $1,050,000.  Clients have total superannuation of $329,000. 

Goals

The clients would like to pay their mortgage off asap. They are worried about retirement as they feel they do not have enough to maintain their lifestyles.

They would like to purchase 3 investment properties however do not understand how and where to buy.

Strategy

The main objective of the strategy was to pay of their family home as fast as possible through the purchase of investment properties.  The first step was to assess their serviceability and risk exposure.  James pays a lot in tax so utilising the tax benefits was crucial.  The strategy outlined an investment property up to the value of $700,000 with a rental return of 4% per annum.  Based on the fundamentals of investing the property would return a positive amount of $8500 per annum which would be redirected to the PPR mortgage each year.  This plus their extra payments allows them to pay of the mortgage in 9 years. 

The 2^nd component was to better utilise their superannuation through property investing.  The recommendation was to purchase an investment home up to the value of $850,000 within superannuation.  Again the cashflows were assessed to optimise the yearly incomes within super and the objective was to have the property paid of in 16 years. 

At retirement (James 65), the objective was to have the family home paid off, the superfund to be $1,200,000 and the investment property to be self sufficient. 

Results

The clients implemented the strategy and through our services were able to obtain an investment property in their personal names and another within their superannuation. The process was smooth and easy to handle.

The properties were sourced based on the our strict criteria process and in combination with the clients opinions.

The personal name investment was an off the plan house in QLD which after completion had risen 65,000 in value.

The loans were obtained and fixed and the clients were very happy with the outcome. 

The superannuation investment was sourced in Melbourne Victoria, again it was an off the plan house which is also worth more than they paid after the property settled.

Both properties were rented immediately and throughout their investment life have provided more income than associated expenses.  The clients are very happy to have an investment portfolio and are confident they are on track for their retirement goals.