I recently meet with some new clients who were looking at building an investment property portfolio. They had already found the property but were unsure whether to proceed. As we talked through their situation I discovered they had a previous bad experience. They had been sued by their tenants and this left a bad taste in their mouth on investing in property. They are concerned about losing their lifestyle / retirement if they proceed.
They want to make sure the investment property is not going to cost them too much money or be detrimental to their future. I gave them some solutions and let them think about it for the weekend. When we got together in the new week we went over the solutions. We will get out extra money on their existing loan so they will always have a nice cash buffer in case anything goes wrong.
I have given them a good cash flow analysis to show them how much the property is going to cost them and how much money they will be out of pocket each year. I was able to provide them with a property profile reports which gave an indication of the property’s value. This eased their discomfort with the idea of buying an investment property and made them confident to move ahead.
For the home loan which we were going to draw out extra funds we discussed moving to a different lender. I found them a great solution that really suited their needs. However they had been with their existing bank for over 30 years and were keen to stay there. They went into the branch themselves to talk about drawing out extra funds and the interest rate for their home loan. The offer was not very good so I went directly to the lender. I was able to get them a 1.1% discount which was much better then the discount they were able to get on when they went in branch.