H&L came to us in the middle of 2016. At that point, their combined income was $140,000. They still had nearly $200k left on their home mortgage which they were attacking quite aggressively. They also had a rental property that they bought through a similar agency to ours 2-3 years before we met them.
They were in their early 50s at that point and it was obvious that in order to secure a better future another 1 or 2 rental properties were in order.
Out of 3 recommendations we made, the clients decided to go ahead with a brand new 5 bedroom property in Cambridge. It was 220 sqm house sitting on a 1100 sqm section. The price was $725,000 with a rental income of $600 per week. Their personal top up would be no more than $20 a week.
Upon the settlement of property, it was valued $50,000 higher than what they have paid. What a great surprise!
Their place got tenanted within 2 week of settlement and they still have the same tenants.
This property is now worth $870,000 according to the CV with a market value being around $900k but they are not in a hurry to sell this beauty. The rental income has also been increased since then.
This property also fits their lifestyle goals as they may live in it themselves when they retire in 10-15 years.
The weekly top up is calculated based on the following assumptions:
Actual rent achieved
Interest only loans