Late 20s couple, self-employed

The next Client Story I want to share with you, it comes from Damien Maglicic, our Qualified Property Investment Advisor. He had an interesting really active, aggressive young couple who are basically spinning lots of plates. They live on the border of between New South Wales and Victoria. One of them is a trader, and one’s in the education industry. Nick, who’s our trader, he’s got a great little business that’s running, and he’s doing really well in that business. He’s also starting up a second business, and with his dad, they actually were trying to do some sub-divisions and also some investments up in a border town in Victoria, New South Wales.

The reality with that story was, some really good cash flows but no growth, so they were getting impatient in terms of what their story looked like.

What they did is they came in, and they sat down with Damien, and they started to prioritise things. What Damien was able to do was to start focusing on the clarity and simplify process. We wanted to simplify, too many plates spinning, trying to get ahead when we really didn’t need to do so many different things. If you’re got a great business as a self-employed person, wouldn’t it be better if you’re focusing on that business, and continuing to build that out, which obviously gives you good income and then you’re able to invest that passively through investment properties. So that’s what we did.

Now this young couple, late 20s, recently engaged, have purchased their dream home with a big of acreage up in the beauty country that is, the of sort of the Murray River country up there, which I love very much. What I loved about that big rock in the jar, they know exactly where they sit from that point of view, but they are still incredibly driven, so by being incredibly driven they can also be impatient. So part of that story is then, “Well how do we plan for our children?” So they’ve got children coming up and overall the idea was lots of stuff going on, so pause let’s reset, and that’s actually what Damien was able to do. He was able to sit down with this couple and talk about, “Let’s make this simple, let’s revisit our situation and let’s focus on buying really good quality growth assets”. Because they have got nice income coming in, and some of those growth assets, because they’re trades, and they’re got good skills, they could potentially add a little bit of value.

But we’re not going to get into developments, we’re not going to take our focus off the businesses that we run, and we’re also going to continue to enjoy our lifestyle. We wanted to focus in on cashflows and be accountable in these areas. The plan was about building out passive income for life, and basically planning their future. They still enjoy working, so they weren’t motivated by retiring earlier, but their story was still a good one. The first purchase is going to happen early next year. So once we’ve cleaned the slate with some of these sub-divisions that we were doing, and basically selling down some of that, we’ll have some cash that will come into our hands. Then we’ll build out a portfolio of properties. Now that portfolio of properties is going to look to generate around $100,000 in passive income, and they’re going to be in their early to mid-50s when that occurs.

A really clear story around clarification and simplification.

Focus on what you’re good at, keeping doing that, keep enjoying that, get that work-life balance working for you and then trap some of that surplus cash and put it into investments.

I congratulate Damien and this young couple in basically putting a really exciting plan together for them, that doesn’t have to be too over engineered, doesn’t have to be too aggressive, just a good solid plan for this couple.