The Brett & Nicole Show…
Back in April 2012 Brett & Nicole had their story told to Smart Property Magazine (SPI), thanks to a little help from Mwa….
So we thought we’d drop in again to see where they are now…
If you missed the first Blog on them, here’s a link
Their one and only goal with investing in property was to purchase their dream home in Sydney’s Eastern suburbs…
Well guess what they have just done… Yep, they recently settled on their dream home – Happy Days!!!
Although I am still waiting for that invite to come over for a beer, I’m sure the invite is in the mail somewhere, isn’t it Brett???
Since we last caught up with Nicole, she has left her job and jumped into self-employed world… and boy did she hit the ground running.
Her business is kicking goal after goal, year after year… an absolute sign to her determination in being a success, which shows in business and her property investing.
So with her business flying along, combined with Brett’s income, they changed their Game Plan and decided to buy a home and work at paying it off. Not a bad decision either as the Sydney market has been increasing in the last year and still showing positive signs of continuing that trend well into 2014.
Before taking the altered plunge they spoke with us in depth to make sure they could still achieve their goals in life.
But borrowing 80% of the purchase price meant they now had a considerable home loan, which needed to be reduced ASAP. And that’s where the new Game Plan kicks into top gear.
No pressure Todd, but that plan means that I need to make them great capital growth from investing in property, so that when they sell those properties in the future they can pay lump sums onto their home loan.
The plan is in place…
Well I haven’t mentioned this yet… but the great part of this story is that their property in Rosemeadow, in South Western Sydney, which they have owned for around 5.5 years, has almost matured.
Meaning that it has increased significantly in value and almost ready to sell. Great timing…
Yes, contrary to all media hype, you sell in good markets, not buy… purchase in the low and sell in the high.
FYI… If you are one of the ones who do this in reverse then you may well become the culprit to one of my low ball offers in the future…
So once sold, they will pay the profits onto their home loan, reducing it considerably. From here we will then do a readjustment on their home loan to reduce the limit down to the new balance, leaving them a few thousand dollars rainy day money.
Doing this will reduce the cash flow required to service this loan along with increase the equity available for them to use to re invest again.
This equity will allow them to invest in two more investment properties, which I will secure for them in the right areas at the right price. Cash Flow positive of course, so it won’t affect their ability to make extra repayments onto their home loan.
But the Game Plan doesn’t end there… they own another three another three investment properties as well…
Their initial Game Plan was to build a large portfolio of investment properties and allow them to all mature and sell them all and then buy their home. The end result is the same but their journey is different.
As investors you must be flexible to this as life throws you curve balls all the time…
So as the other three properties mature in value we will also arrange for them to be sold and again place all profits onto the home loan…
But remember, every time you sell, you replace those properties with at least two or three replacement properties.
So essentially they will have a conveyer belt of investment properties properties that will mature at different times and they will sell and replace with two to three news ones each time…
This continues until the home loan is zero…
Then the Game Plan changes again…
Now all their home loan debt is gone, the strategy changes from Buy & Sell to a Buy & Hold strategy… to create a passive income.
But with no monthly home loan repayments to make, and a ton of equity they can utilise, their investment portfolio can easily expand to 20 investment properties over time.
Then they simply sit back and allow them to increase in value and let the rents continue to increase and create a passive income of substantial value.
It’s great to see our clients achieving their goals and heading towards a fantastic future…
Congrats Brett & Nicole…