Stephen - time poor executive

Our case study this month is of our client who believes that investing in property is the key to financial freedom… and what makes Stephen a great case study, is that he has done this as an individual (not a couple).

Stephen became a client of the wHere group in early 2004. The relationship started with a simple refinance of a home loan of $340,000 and two investment loans for two investment properties he owned in Sydney. 

We re-structured the home and investment loans so as to allow Stephen to put his entire income into a small Line of Credit as well as his rent from the two investment properties thus make all his loan repayments from the same place.

This then set the base to a structure that would allow growth in his investment property portfolio without having to change loans all the time, plus giving Stephen stability in repayments and cash flow to invest further.

Once this process was complete, Stephen had a long chat with Todd, and together they put a Game Plan in place that directs them to Stephen’s long term goals, a 15 year plan to financial freedom for Stephen’s retirement.

The Game Plan consisted of a strategy that would see Stephen buy numerous investment properties, hold them for 4 years and then sell (Otherwise known as a buy and sell strategy).

The research on wHere to buy was left up to the wHere group and their researched locations. The idea here was to sell the properties for a profit and pay off his home loan. From here we could then concentrate on creating a passive income for life by purchasing property both inside his Self Managed Superannuation Fund (SMSF) and also in his personal name.

The first two properties were in Geraldton WA, a brand new 4 bedroom house for $212,000 and in Bunbury WA, a 3 bedroom house for $166,500.  After this he purchased numerous blocks of land throughout WA and another house in Katanning WA in the areas researched by the wHere group.

Please note: all these property locations were purchased in well researched areas that meet the wHere group criteria and long before property prices in WA skyrocketed…

Once Stephen had accumulated a considerable portfolio that was easily affordable to his budget, he then sold the two Sydney properties in consecutive financial years (to reduce the Capital Gains Tax payable). We also arranged for the sale of several blocks of land for him (through our chosen local agent) and he deposited all profits onto his home loan, almost eliminating it completely.

Oh yeah, the original house he purchased for $212,000 with wHeregroup is about to settle for a sale price of $410,000 along with a block of land he purchased for $64,000 Is settling for $142,000

In a few weeks Stephen won't have a home loan anymore… and he will have a nice lump sum he can put into his super. He also has the equity in his home to utilize thus allowing him to buy new a portfolio of properties outside of his SMSF.

Around 12 months ago we arranged for Stephen to meet with a financial planner who arranged for his superannuation fund to be transferred into a SMSF and we are currently in the process of arranging finance within so that he can purchase a portfolio of properties that won't attract CGT (capital gains tax) when he sells.

Knowing our practical affordable approach to research based investing works, the wHeregroup has now purchased property for all his family and some of his friends…

In all honesty, Stephen’s future is looking extremely comfortable…