Applying a strategic property portfolio plan to improve the client's overall property performance, acquiring 2 investment properties
THE BRIEF:
Peter approached Ramsey to enhance his underperforming property portfolio, which was yielding 2%, compared to market returns of 6-8%+.
THE APPROACH:
The Ramsey team assessed Peter’s portfolio, identified underperforming investments, and proposed a 10-year property plan. They recommended setting up an SMSF with an external financial planner to improve his investment strategy. The in-house Mortgage Advisory team then began a complex lending process.
Following advice, Peter sold one underperforming asset and set up an SMSF to acquire 2 more properties aligned with his strategy.
THE SEARCH FOR 2 HIGH RETURN INVESTMENTS:
Marvin, our Buyers Advocate, was tasked with finding two properties—one for personal purchase and one for Peter's SMSF:
- Secured an off-market property in Queensland for the SMSF.
- Negotiations were tough due to vendor’s high price expectations.
- Informed Peter about the competitive market conditions.
- Peter made an aggressive offer, meeting the vendor’s expectations.
- A B&P inspection revealed minor maintenance issues, including high moisture in the master ensuite.
- A $2,000 price reduction was agreed upon for remedial works.
- Ramsey Mortgage Advice team structured the finance, with the valuation under the purchase price to avoid a shortfall.
- Secured a $10K price reduction and extended finance and settlement dates due to complications with the SMSF borrower.
THE RESULT:
Before joining Ramsey, Peter couldn't find the transparency and specialized teams Ramsey offers. His returns improved, and his structure was optimized. He sold another poor investment, moving into high-yield investments to boost passive income, aligning with his retirement goals. By year-end, Peter will already be in a cashflow-positive position.