Early 30s couple — no plans for kids

So, one of Joel’s clients this month was a Tassie based couple in their early 30s.

They’ve got no kids and they have no plans of having more children, you know, they’re currently in the retail and government sectors, so they’re on a middle-class income. Now, they own the principal place of residence in Hobart. They’ve actually done pretty well. They timed getting into that market alright, so they’ve done alright.

They also hold one investment property in the outer suburbs of Melbourne and one of those people has a third share in a property with his sisters that he also rents to the parents. So, the mum lives in that property, so it’s a bit of a family affair that one, so he’s got a bit of a joint venture going on there. Now in terms of what was their motivation to come and seek Joel’s advice? This is an interesting story. Now, they’re looking to move away from Tassie. They’re actually looking to also relocate, similar to Brendan’s story, where we’ve got better jobs, and the weather in Tassie has finally got to them! So, they’re planning to make a move to sunny Western Australia and move to Perth.

Part of their discussion points around this is they were indecisive.

They had differing opinions around what the best strategy was to move forward. They had multiple scenarios running through their heads and that was always challenging for them, and the other bit that was also challenging was this third ownership because that third ownership also did mean that they had, you know, multiple responsibilities around servicing, so, joint and several liabilities around the debts on that particular property, that one the mother lives in as well. So no real clarity. Lots of ideas! But no real clarity around their situation. So the solution that we proposed to them on our property portfolio plan, based on sitting down [with them], and Joel had several different conversations with him because there was lots of moving past this story.

The first one was we are now going to renovate Hobart, okay, so we’re gonna take advantage of a very strong market in Hobart, do some tidy up on that property and then we’re gonna sell that property at the peak. So, that’s going to be able to allow us to gain some further cash. We’re moving to Perth and we’re going to rent for the first six months and check out how, it sort of, the life moves around the Perth market. Then, our plan is to buy our entry level property into the Perth market while it’s soft. It’s a, you know, softer market over there. So, that gives us an opportunity to come into that market.

Now, down the track we do plan to upgrade that property, so as we get better jobs and our career start to move forward, we’re going to look to potentially upgrade that property. So, after they upgrade that property (that principle home) they then go on to buy their third and fourth investment properties and they’re looking to retire in their mid-60s with a passive income of around $100,000, so that’s a great story.

And, you know, for me what I love about this one is they firstly had, you know, some ideas around what was right and what was wrong and they had mixed opinions about those. So, we’ve been able to clarify those opinions and we’ve been able to go on and renovate that Hobart property, so they’re doing that right now! Their plans are on foot to move to Perth in the next six months and, overall, now they have the confidence to act on their overall situation. So, for me, that’s another great reason why you get behind the numbers and you can see exactly what it means for each household and why it’s so rewarding for us to be in a position to be able to facilitate this.