Who: Ann and Peter

From: Lane Cove, New South Wales

Age: Peter 45, Ann 39 

Kids: 2 aged  13 and 15 years

Occupation: Peter is a full time high school teacher, and Ann works part-time in a nursing role

Income: Both are PAYG employees on a combined yearly income of $105,000

Situation: Ann and Peter have a $120,000 mortgage on their home in Lane Cove which is valued at $900,000. They have 2 credit cards and no other debt.

Ann and Peter are a testament to what can be achieved with some careful planning, long-term goals, a positive attitude. Though Ann works part-time and the pair have 2 children to care for, and are sure what they have in Superannuation will not keep them the way they would like in retirement, they realise they had to act now to change their long term outcome.

In order to part taking in the project we refinanced their home to a loan of $285,000 in 3 split accounts                 Split 1   Their Existing Loan                           $120,000

                                Split 2   Their Investment account                   $145,000

                                Split 3   100% Offset Account                         $  20,000

The Investment account provided the $138,000 for the development (with a little spare) We kept their home loan separate for taxation purposes and then added a 100% offset account and then re-banked the $20,000 into take account so we were not paying interest on it. The offset account was simply in case of back stop.

They invested the funds in February and took possession of the units in first week of September. They decided to keep the units to take advance of capital gains and now have both rented out to solid long term tenants,

With their financial situation, the depreciation and the good rental returns the 2 units are only costing them $45 per week…. A great investment

Peter’s comments “ It was a great way to buy investment properties way under what everyone else was paying…we had equity from day 1”