Grant & Heidi – 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.

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:

create stand alone mortgages using a range of lenders
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
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 is the Founder and Managing Director of Intuitive Finance, a highly respected and multi-award winning Mortgage Brokerage dealing
with clients all over Australia and around the world. Andrew has over 30 year’s experience in the finance industry and has assisted clients to secure over $2 Billion in mortgage lending over his time. Intuitive Finance deals with all aspects of lending from helping first homebuyers, someone wanting to upgrade their home or starting out and experienced investors looking to secure that next investment property, we can assist with all those requirements. We also specialise in working with self-employed clients and getting them the best outcomes, along with Commercial and Asset finance solutions. Intuitive Finance is highly regarded in the industry and has been recognised as a national winner of the MFAA customer service award and also one of the finance industry’s top mortgage employers. Our brokers also feature regularly in the Top 100 mortgage brokers list in Australia.