Kevin and Annette realised that retirement wasn’t too far away, given the fact that they still had a $350, 000 mortgage and no investment strategy, the future looked bleak.
Kevin and Annette were desperate to do something. Their accountant referred them to APPA whose specialists came up with an investment strategy which:
a. minimised their tax and current mortgage debt; and
b. created a retirement plan to provide an income in retirement.
Kevin and Annette conducted a two hour strategy session with APPA’s accountant, financial planner and finance strategist to assess their financial situation and implement a plan to address their issues.
Based on the plan, Kevin and Annette decided to use their superannuation funds as a deposit to purchase two investment properties. This option not only leveraged their current assets to over $700 000, it offered a solid yield, which would underpin their retirement income.
A property that suited their needs was secured and the setup of the finance, trust and trustees were completed. The sale was completed and tenants selected.
The investment Kevin and Annette selected suited their goals 100%. By buying a property from a distressed seller under market value, they were able to achieve an immediate profit of $25,000. The investment offered a strong yield which ultimately ensured that the rent and their super contributions made it possible to pay the debt off in 11 years.
The initial investment of $5000 to setup the plan and a self-managed superannuation fund was deducted from their superannuation meaning that Kevin and Annette didn’t incur any out of pocket fees.
This small investment has ensured that Kevin and Annette have a retirement nest egg of $900,000 in property, plus $220,000 in Superannuation and a weekly income of $700 tax free.
The bonus is, they were able to go on a much needed holiday, too.