Typical Client Situation -- First Home Buyers
How We Can Help
Michael and Sandra have a good budget that they are quite diligent with and this definitely has assisted them in achieving their savings. They estimated they would need to borrow an additional $370,000. Our planners would walk the clients through the pros and cons of having an investment property versus a principle residence, and the effect this would have on their overall financial situation.
Once we presented the couple with some scenarios on what each strategy may look like, they were able to make a decision on what was best suited to their lifestyle, and decided to continue to rent and purchase an investment property. We then referred them to our internal mortgage broker who assisted them in establishing their loans and found the right loan structure for them. Our advisors then provided them with advice on the recommended insurance requirements based on an analysis of their needs.
Finally, we assisted them in reducing the principal on their loan in as short a time as possible, in order to make their property positively geared to later draw on for their next property. 12 months later, Michael and Sandra have $200,000 debt remaining on their property and are starting to plan for their next investment.