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When Christine first heard about The Investors Club (TIC) from a friend she was very excited. Not only was it a good idea for herself but also her four adult sons. You see, Christine had realised that she was only ten years off retirement and her only asset, her superannuation, was not going to provide a comfortable retirement. Craig, one of Christine’ sons, had also attended an introductory workshop and was interested in building up a property portfolio to secure the future for himself and his young son.
Christine had strong income and good cashflow, but no assets. Craig had one major asset, his own home which had experienced good capital growth over a period of 5 years, but his income could not provide any further cashflow. Their Support Member, Alison Sewell, remembered reading the article on “PUPP-IES” in the November 2004 newsletter. This is an acronym used by the Club for members who are “People Unable to Purchase Property” (but keen to). Christine, Craig and Alison came up with a plan to use Craig’s equity in his home and Christine’s income for cashflow. This was a Win-Win arrangement that suited both of them perfectly. They submitted Financial Enquiry Forms and started drawing upon the expertise of the Club Loans Mortgage Professionals,and the plan which had seemed to be “too good to be true” soon became a reality. Finance was pre-approved and the only decision left was “which property”.
After browsing the properties on the TIC website and consulting with Alison, they produced a short list of excellent properties. Using the CAP software, Alison was able to profile each of the short listed properties and demonstrate their affordability and projected capital growth. Using the CAP also assisted Christine and Craig to agree on the percentage split that would provide them the maximum tax benefit.
An Expression of Interest was lodged in March 2006 for a two bedroom unit that settled shortly after. The helpful staff at Head Office also assisted Christine coordinate blinds and screens for the unit and a tenant moved in within two weeks of settlement. Alison also helped Christine complete her tax variation application using the data available in the CAP software. This has now been lodged with the tax department to help realise tax savings each fortnight that would provide the cash flow necessary to service the Interest Only loan.
Alison plans to visit Brisbane mid August to view her own recent purchase in Fortitude Valley and has promised to call in on the unit for Christine and Craig, taking lots of photos.
Craig and Christine
Club Members
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