WEALTH OBJECTIVES
Sara and Michael approached us for guidance on making sound financial decisions and building a property portfolio that would eventually allow them to step back from full-time work and enjoy the finer things in life. They weren’t sure how to achieve their goals.
STRATEGY INCLUSIONS
Budgeting
Investment Lending
Property Services
SMSF Services
Wills & Estate Planning
POSITION THEN (2018)
Total Assets: $11,000
New Wealth Position: $97,000
Net Cashflow: $34,000
POSITION NOW (2024)
Total Assets: $3,385,000
New Wealth Position: $1,446,788
Net Cashflow: $134,000
KEY MILESTONES AND STRATEGIES IMPLEMENTED
MARCH 2018
When Sara and Michael came to us, they had no budget and over $100,000 in consumer debt (personal credit and car loans). Their goal was to be debt-free and start building a property portfolio, but they didn’t know where to start.
The first step was to assist with budgeting and debt reduction, allowing them to save enough to purchase their first investment property. They also decided to set up a SMSF to take control of their superannuation and make their first investment while continuing to budget and save for investments outside their SMSF.
MAY 2019
By their 12-month review meeting, Sara and Michael had saved enough to purchase their next two investment properties. They bought a property in Tasmania for around $340,000 and another in South Australia for close to $370,000. The combined value of these properties today is approximately $1.06 million, resulting in $410,000 capital growth (around 12% annual growth).
April 2021 to July 2022
Two years later, given the strong performance of their first two investments, Sara and Michael were able to use the accumulated equity to expand their property portfolio. With the help of Future Assist property specialists, they carefully selected additional investments. They purchased another SA property for about $310,000 in 2021 and two QLD properties for approximately $600,000 and $690,000 in 2022.
THE OUTCOME
The turnaround for Sara and Michael is remarkable in a relatively short period. With the help of Future Assist, they now have no personal or car loan debts and own a property portfolio worth more than $3.3 million. The investment properties purchased in 2021 and 2022 have all performed well, and an additional $250,000 in equity is now available for further portfolio growth. Sara and Michael are planning to use this equity to add to their portfolio again this year.
Names have been changed but all other details provided in this case study are based on actual client results. While every effort has been made to accurately represent the outcomes and results achieved in this case study, it’s important to note that individual results may vary based on a variety of factors including but not limited to the client’s unique circumstances, goals, and actions taken. This case study is not intended to serve as professional advice or guidance.
