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Case Study: Korgan & Theresa's 5 Year Journey to Financial Security Amidst Work & Family Commitments


Client Overview

  • Names: Korgan & Theresa's
  • Ages: Mid 40s
  • Professions: Full-time employment, Korgan’s income at $143,000, Theresa's income at $130,000
  • Primary Financial Goals: To create a property portfolio that generates consistent cash flow, can support their lifestyle during retirement, and has the flexibility for one property to become their primary residence (PPR) in the future.


Initial Situation and Challenges

Korgan and Theresa are currently in a secure financial position, owning their primary residence and a property in Malaysia. However, they faced several challenges:

  1. Debt on Overseas Property: They had a $150,000 debt on the Malaysian property, which didn’t generate rental income and, therefore, wasn’t tax-effective.
  2. Transition Plans: They aimed to gradually taper off their full-time employment and potentially live overseas while keeping a residence in Australia.
  3. Prior Experiences with Advisors: Previously, they worked with another advisor but lacked proactive guidance. This left them cautious about moving forward without a clear, long-term plan.
  4. Investment Confidence and Time Constraints: Their demanding jobs made it challenging to dedicate time to investment research and management, so they sought a "one-stop provider" for comprehensive financial and property guidance.


Our Strategic Approach

Ramsey Property Wealth developed a customised plan to meet Korgan and Theresa's needs, focusing on cash flow optimisation, property acquisition strategy, and structured debt management.

1. Comprehensive Consultation and Goal Setting

The initial consultation focused on understanding their lifestyle goals and financial situation:

  • Lifestyle Goals: Increase annual holiday budget to $20,000 (target), with a minimum of $10,000 per year.
  • Property Investment Goals: Acquire properties that generate consistent cash flow, with one property having the potential to become their primary residence.
  • Risk Profile: Balanced, with openness to slightly aggressive investments if the process remains hands-off.

2. Cash Flow Optimisation and Debt Structuring

We restructured Korgan and Theresa’s existing finances to free up additional cash flow:

  • Malaysian Property Debt: Prioritised paying off the Malaysian loan to eliminate non-tax-effective debt.
  • Cash Flow Strategy: Set up offset cash accounts and encouraged using credit cards for expenses, cleared periodically to maintain cash flow efficiency.

3. Short- and Long-Term Investment Strategy

A two-phased approach was adopted to balance their short-term and long-term goals:

Short-Term (Year 1-2):

  • Target Location: Acquire an investment property near the Gold Coast train line or airport, which could later be used as their principal place of residence.
  • Financing Strategy: Utilised an offset account and managed cash flow through their established credit structure.
  • Property Selection: Focused on properties with solid rental yields for immediate cash flow and long-term capital growth potential.

Long-Term (Year 3-5):

  • Equity Growth: After two years, aim to refinance the first investment property to release equity for a second property purchase.
  • Portfolio Expansion: Continue adding properties with strong capital growth in prime locations, with a five-year plan to transition one into a primary residence.
  • Income Protection: Enrolled in the Ramsey 'Lifestyle Program' Membership for structured cash flow, tax savings through depreciation, and proactive portfolio management.

4. Risk Management and Proactive Support

Ramsey Property Wealth provided ongoing risk assessment and management to ensure the portfolio aligned with Korgan and Theresa's evolving financial situation:

  • Quarterly Reviews: Scheduled regular performance assessments to make adjustments based on rental income and property market changes.
  • Hands-off Investment: Ramsey’s team managed the day-to-day aspects, from mortgage application to property acquisition, allowing Korgan and Theresa to focus on their careers.

Results and Achievements

Through Ramsey Property Wealth’s support, Korgan and Theresa have built a strong foundation for financial independence:

  1. Debt Reduction: The Malaysian loan was prioritised for repayment, freeing up funds for future, tax-effective investments.
  2. First Property Acquisition: The first investment property, ideally located along the Gold Coast train line, generates positive cash flow and is projected for significant capital growth.
  3. Projected Cash Flow and Equity Growth: By Year 5, their portfolio is expected to deliver consistent passive income and sufficient equity to support future investments or lifestyle goals.
  4. Portfolio Growth Plan: Ramsey’s strategic 5-year plan ensures their portfolio aligns with their goals, ultimately achieving both cash flow security and lifestyle flexibility.


Conclusion: Their 5 Year Pathway to Financial Freedom

Korgan and Theresa's journey highlights the power of strategic, hands-off property investing. With a balanced approach to risk, Ramsey Property Wealth helped them optimise their cash flow, manage debt effectively, and lay the groundwork for a diversified property portfolio.

Through structured planning and proactive support, Korgan and Theresa are now well-positioned to meet their long-term financial goals with the peace of mind that comes from a reliable investment partner.

Find out how the Ramsey team can help you, call us on 1300 001 215.