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Grant & Heidi – Sophisticated Investors

Michael & Sally – First Time Investors Richard & Michelle – Expatriate Family
Sophisticated Investors

Grant & Heidi

Sophisticated Investors

A mature couple own several properties and want to take advantage of their current earnings and repayment capacity.

They would like to purchase additional rental properties in preparation for their retirement (after which time their borrowing capacity will be significantly reduced).

A further challenge for them is that 2 of their existing properties are under performing and the total debt across all assets is cross-collateralised which will increase the level of difficulty, and reduce the flexibility, in managing the eventual sale of individual properties.

Our proposal

To allow the efficient sale of the under performing assets and to release all available equity in the existing assets (up to 80%) which will in turn enable further asset purchases, we proposed to:

  1. create stand alone mortgages using a range of lenders
  2. increase debt levels to an 80% LVR (loan to valuation rate*) and in turn establish a line of credit to be used as both a deposit on additional property purchases as well as to provide a financial buffer to ensure that repayment schedules can be maintained without any reduction in disposable income
  3. rebalance the portfolio by selling the two under performing assets and commence the search for a new property in a more robust area (capital growth and rent revenue).

*anything over an LVR of 80% will generally attract compulsory mortgage insurance

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Andrew Mirams

Andrew Mirams

Andrew Mirams is the Managing Director of Intuitive Finance and is a highly qualified mortgage advisor who holds dual diplomas in Financial Planning (Financial Services) and Banking and Finance (Mortgage Broking). Andrew’s expertise covers all aspects of lending for a diverse range of applications – from first home buyer loans or property upgrader loans, property investor loans, expatriates and loans for self-employed. With almost 30 years of experience, Andrew has been acknowledged by the mortgage industry as one of its best performers with multiple awards including regularly featuring in both the top 100 mortgage brokers list and Top 50 Elite business writers. Andrew was voted Victoria's favourite Mortgage Broker at the 2015 Investors Choice Awards, and won again for the same category at the 2017 Better Business Awards. The team at Intuitive Finance has also figured prominently by winning the 2016 "Best Independent Office (<5 brokers)" and "Best customer Service" Awards, and more recently at the 2017 MFAA National Awards, they also took out the "Best Customer Service" Award, a recognition which speaks for itself! Visit Intuitive Finance for more information.
Andrew Mirams

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