Case Study 1

479% Growth in Equity in Just 10 years

A case study from our files

The year was 2000. Mr & Mrs A were aged 50 and 48 and owned their own home outright but had no other investments other than some small cash savings. Estimated value of their residence at the time was $220,000. Both were working on middle incomes.

After speaking with Chris Costanzo, Principal of MTA - More Than Accountants, they agreed that they needed to do more to provide for their retirement. They had never invested in property (other than their own home) but decided to buy two house and land packages for approximately $240,000 each using the equity in their own home to obtain 100% finance to do so.

Total value of properties at this time - $700,000 Debt $480,000 Equity $220,000

By the year 2003, the value of their properties had increased considerably and they were having no difficulty in servicing their loan, so they decided the time was right to purchase another investment property. They purchased a town house at Coomera for $299,000

Total Value of properties at this time - $1,289,000 Debt $785,000 Equity $504,000

By the year 2009 ( at ages 59 & 57) they decided that it was time to buy again. Their first 2 properties had become cash flow positive and the third was almost at that stage, in fact rental income was covering all expenses for all three properties.

They then purchased a unit at Tweed Heads for $565,000. Considering their ages, this purchase was dual purpose - an investment until they retired and then their residence following retirement (perhaps).

Total value of properties now - $2,426,000 Debt $1,152,000 Equity $1,274,000.

So in the period of approximately 10 years they have increased their equity from $220,000 to $1,274,000 - an increase of $1,054,000 or 479%. By the time they retire, all properties are likely to be cash flow positive, this will give them an income stream to supplement their superannuation pensions without selling any of their properties, which of course would still remain an option should they require a lump sum for any purpose.

Throughout the 10 year period, Mr & Mrs A have utilised the services of MTA - More Than Accountants, MTA Finance and Masta Property Investment Services to assist them to grow their wealth. WE ARE HERE FOR YOU TOO!

Are you interested in?

Paying off your home loan and reducing personal debt?
Reducing your tax?
Creating wealth?
Having a plan for the future that will give you financial security and independence?
Replacing your income with a passive income stream?
Learning how to turn $80 a week into $300,000 - $400,000 in the next 10 years?

If you are then you should apply for MTA's Property Plus programme.

Property Plus is MTA's Premium Wealth Creation service specifically designed to provide you with a structured, systematic and managed approach to building an investment property portfolio. Our approach is underpinned by sound budgeting processes and safeguards, and is supported by an experienced team of professionals to ensure that wealth created is sustainable and protected.

How to get started

Complete and return the Property Plus Customer Action Form
MTA will conduct an initial financial review to determine your capacity and readiness to commence your financial plan
If you have capacity to invest we will arrange for you to meet with our Property Investment Specialists for an initial overview and needs analysis.
If you agree to go to the next step this will be followed by an in depth analysis of specific properties, investment performance, and tax-effectiveness for your specific situation, including recommendations and provision of investment report. This report is valued at $595.
If you do not have capacity at the present time we will discuss with you steps to become investment ready.

Complete the Property Plus Customer Action Form today.

The information provided is general in nature only and is not a substitute for independent professional advice. We disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of this information, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of this information.