Steve – Self-employed

Purchasing a property when self-employed

As a self-employed plumber, Steve wasn’t sure he would be able to use debt to start a property portfolio. Traditionally, banks would view him as less reliable than PAYG earners, making it more difficult for him to build a property investment portfolio.

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    Reorganisation of financial accounts

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    Adding back charges to books

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    Rollover of existing loan into a new facility to reduce overheads

Our proposal

Steve needed a new strategy for purchasing an investment property using the equity he had in his house. While he would have been able to service the loan with his earnings, he needed to be able to show that clearly in his application. Intuitive Finance walked through his accounts and added back a number of charges to more accurately reflect his annual earnings, and also arranged to roll over a small business loan into the new facility. This reduced his estimated overheads by the amount of the interest the business had been paying.

The Outcome

After the review and refinement of his finances, Steve was able to establish a line of credit with his lender and then purchase a bayside property (with an LVR of 80%, thus avoiding mortgage insurance). Since then, he has been renting out the property and is looking to keep growing his property portfolio.

Andrew Mirams

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