Property Twins | Property Twins™
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Some people may only want to buy one or two investment properties and that ties with their needs and goals. 

However, some may want to continue growing their portfolio over the long term…

In this case study we share about our clients Brian & Maria, who have built a $2 millionplus property portfolio with 4 properties in 12 months.

When Brian & Maria reached out to us, they just owned one investment property in Lower North Shore, Sydney. 

Brian & Maria are hardworking Australian expats, based and renting in London. They went from owning just their first investment property to four high growth investment properties within 12 months, with an upcoming 5th investment property purchase. 

With just 4 properties in their portfolio, Brian & Maria are set up to add $1.35 million in net wealth across their assets in the next 10 years!

And when they add the 5th property worth $400k to their portfolio, they will add $1.6 million to their net wealth over 10 years.

About Brian & Maria: Couple in early 30’s with no children. Brian is a lawyer and Maria is a registered nurse. Their family income to determine their borrowing power was $241,000.

Where they were and what they wanted to achieve: 

Brian & Maria were looking to build a property portfolio, which would allow them to have an asset base which could grow in value overtime, and provide them with a solid asset base for future, as they progressed through various stages of their lives.

When they reached out to the Property Twins team, Brian & Maria were unaware of the possibilities for them. They had the choice to stay where they were, and just own 1 investment property. They instead opted for a tailored plan mapped out, which has enabled them to go beyond just one additional investment property purchase.

Proposed Solution with a Tailored Plan:

1. Correct structuring of their existing investment property so they maximised equity released to fund deposits for future properties
2. Recommendations on repayment types suited to their properties
3. Exploration of how Brian & Maria don’t pay Lenders Mortgage Insurance as Brian is a lawyer
4. Mapping out scenarios covering consecutive purchase of 2nd, 3rd and 4th investment properties
5. Plan ahead for the purchase of 5th investment property, as Brian & Maria build up their savings and equity

Results: In less than 12 months, Brian & Maria went from just owning their only investment property to purchasing 3 additional investment properties

Existing Investment Property Equity Release: $280,000

Investment Property 2 and 3: 2 x Houses in a high growth QLD suburb 
Purchase Price: $426,000 at 80% Loan to Value Ratio (LVR) and $545,000 at 90% Loan To Value Ratio (LVR) 

Investment Property 4: 1 x Villa in a high growth VIC suburb
Purchase Price: $440,000 at 90% Loan to Value Ratio (LVR)

(No Lenders Mortgage Insurance (LMI) paid as Brian is an Australian qualified lawyer)

Total Investment Property Ownership: $2.14 million approx. 

Growth Projection: 

If the properties owned grow by a conservative 5% per annum, Brian & Maria will be adding $107k to their wealth per year, compounding year on year. In 10 years, this will be more than $1.35 million in net assets due to the compounding affect. 

Property doesn’t grow in a straight-line basis. Brian & Maria’s portfolio may grow more in one year and less in another.

What’s Next for Brian & Maria? 

Property Twins team will continue monitoring the value of Brian & Maria’s portfolio to see opportunities around equity release and further investment properties which are possible for them, given the strategic and planned set up of their existing properties. 

Brian & Maria already have a plan to purchase their 5th investment property as they save more and build equity in their existing properties.

Brian & Maria’s current investment loan structure is strategically set up to allow them to access equity and maintaining tax effectiveness of their investment loans.

As you work through your own goals, dreams and aspirations, you can see that acquiring one and more investment properties is about having a ‘step by step’ strategy laid out to enable you to keep moving forward.

This is possible by having a ‘step by step’ plan tailored to your circumstances, established upfront by the Property Twins to enable you to keep moving forward.

If you are a first home buyer, upgrader, looking to refinance or to buy an investment property Book a Kickstart Call with the Property Twins Team
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Note: Please ensure you always seek specific specific credit, tax, financial, legal or investment advice. Property Twins' Blogs are not a substitute for personal and specific, taxation, financial, legal or investment advice

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