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Couple with 2 kids and a Big Dream!

G’day,Ben Kingsley here the managing director of Empower Wealth and, obviously, each month we spend a lot of time looking after lots and lots of customers. So I wanted to basically start to do a monthly wrap in our property side of our business.

I wanted to get also in behind those numbers and tell the real life stories that are going on for each of our customers. So I’ve got a list of customers here, a handful of customers that I’ve been given by each of the advisers and I want to tell a little bit of their story.

First of all, I want to start with the actual numbers. So inside our property wealth planning team. We delivered 40 new property portfolio plans, so that’s 40 new clients in July that we’re going to be looking after. Now, what’s interesting about the numbers inside that over the next 12 months? We’re going to be buying 32 properties now to the value of around $17.3 million.

So that’s pretty cool, but if we actually have a look at those 40 plans that we’re doing, we do portfolio plans as well, so there can be multiple recommendations around those properties as well. So here’s some of the numbers of those 40 plans that we put in play that came live in July.

We’re going to buy 128 properties, and that’s to the value of $58.2 million. Now, we think about that obviously, we’re going to see some growth in that number story over time, but also property is about building that passive income. So a little sort of number that I put together as well is what if we got a 4% rental income from that $58.2? That equates to $2.382 every year that’s being generated in passive income for those clients.

That’s the numbers part of the story, but now I want to move into those real life examples. So here’s one that I spoke to with Brendan about. They’re a Melbourne based couple in their mid-40s middle class couple with two older kids. Now, up until this point in time they’ve basically bought their principal home, they’ve got a small mortgage attached to that and they’ve been enjoying their money. They’ve been enjoying living comfortably around their money.

Now, what has changed their focus right now around their future financial situation has been their youngest son. Now, he apparently is a pretty good basketball player, so for him to get an opportunity, they potentially need to move to Brisbane. So, when you’re moving to Brisbane, you know to give him the better opportunity, that’s going to change your results around your household.

So, what do we do with the Melbourne property? Do we keep it? Do we sell it? What about when we moved to Brisbane do we buy in Brisbane? Do we rent? What’s next in terms of our overall plan?

That was the challenge that Brendan had in terms of sitting down with his couple and trying to work out their future plans. So, the conclusion of that is we have a plan now where we’re going to keep Melbourne and turn it into an investment property. We’re going to buy a new principal place of residence in Brisbane in the school zone that we need to be in for that son to get the best basketball opportunities. So, we’ve woven that in terms of we’re gonna then buy another investment property and then in five to six years after the son is no longer a dependent child, so he’s all grown up now, we’re going to turn that Brisbane property also into an investment property and we’re gonna go and retire on the Gold Coast.

So, we need to buy a principal place of residence on the Gold Coast, and so we turn that Brisbane property again into an investment property, so at the age of 65 this couple out of Melbourne have had a big transformation around their move. They’ve obviously been able to make some of these decisions based on the calculations that we’ve been able to give them to say what is actually going to turn out. So for me, the problems that we’ve sold and the transformation they’re having is, you know, can they do it?

Yes, they can. How do they do it best? Well, they just follow the script. We’ve now got a plan for them.

They also, as we heard earlier, were pretty easy-going with their money. And that meant that they weren’t trapping enough of it, so we’ve implemented the MoneySmarts, so that free and easy money is now focused on the future plans that we’re looking for, for that client.

So they now have a clear clarity and direction in terms of how they’re going to move forward, but most of all from my point of view they’ve now got the confidence to act, so that’s a great news story for Brendan in terms of putting that plan together.

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