Case Study - Clarity and perspective overcome fear

LEE AND HANNAH Lee 55, and Hannah 50 owned their own home with a mortgage, however, it would be a year or two before they could refinance and release equity cost-effectively. They also held $400,000 in a self-managed super fund. They joined The Property Mentors with the goal of securing assets to fund their retirement. THE SITUATION Lee and Hannah came to us after a difficult experience with another company. Their money had been tied up for 18 months in a house build that never went ahead. Eventually they got their money back, however they received no interest or return on their funds. With retirement just 10 years away they were becoming more anxious with each month that went by without their money working for them. They knew they needed to invest for retirement but also apprehensive about re-entering the markets. This apprehension was preventing them from investing despite really want to. THE SOLUTION A big chunk of the work in the first two months of their membership was around helping Lee and Hannah come around and understand that: Yes, they had lost some time and had a bad experience. But dwelling on that experience and procrastinating over their next investment was not going to help them achieve their long-term goals.We discussed that for them it was not only about finding the right deal. It was also about understanding themselves, understanding their belief systems and working through those beliefs in a structured way. We also discussed and "ran the numbers" on the cost of inaction. After guiding them through an education process and mapping out a plan with them, we introduced them to a team of investment-specialist brokers, solicitors and accountants to help them decide on the most advantageous way to structure their investments from an asset protection and tax-minimisation standpoint. Now that they had clarity around their long term-goals, an understanding of investment structure and perspective about where their doubts were coming from, they were able to move past their fears to take action. With a connection to clear goals and a plan in place, they were ready to make educated decisions based on research and informed projections. After considering a few scenarios they purchased a property which would provide a good balance of cash-flow and growth potential and invested $100,000 into our Become the LenderTM strategy at 8%, for 12 months to increase their cash buffers before they look to purchase their next property. THE RESULT With clear goals, and an understanding of the numbers that are most important and relevant, combined with a plan, Lee and Hannah feel much more confident about their future than they did 6 months ago. They have already secured the first of three investment properties in line with their plan and clearly understand how they will achieve their outcome with one more property in SMSF and another in their own names. Do you want to discover how our team can help you realise your investing goals?