Case Studies

Over the past eight years, APS Growth has helped more than 500 clients to invest in over $1 billion worth of property with ease and confidence.
APS Growth takes the guesswork out of sourcing quality investment properties, applying a rigorous research process that incorporates 15 different sources and a customised 100-point property rating system.
Here are some of our case studies showing how we have helped clients achieve their goals.

Samantha

Wednesday, July 14, 2010

Samantha is single, occupies her own home and earns in excess of $180,000 pa. Prior to meeting with her Property Mentor and Mortgage Consultant Samantha was reducing the principal by $10,000 pa off her home loan over and above the minimum requirement. Since then Samantha has purchased a house and land package in SE QLD ($330,000) and another townhouse off the plan in Northern QLD ($440,000) which is due for completion in August.
Both properties have increased in value by 15% in less than 18 months.  Not only was Samantha able to secure 2 investment properties which have created additional equity she also paid an additional $30,000 off her principal on her home loan over and above the minimum requirement thereby reducing her non tax deductable debt!

Tim & Emily
Wednesday, July 14, 2010

Tim & Emily arrived in Australia in mid 2003.  At that time they owned 2 investment properties in NZ and were leveraged at approximately 80%.  They sat down with their Property Mentor and mortgage broker early in 2004 and since that time have purchased another 5 investment properties all in Australia.
Because they chose property in high growth areas with strong rental demand they have increased their property portfolio from around $850,000 in early 2004 to around $3.8m in early 2008.  The pertinent point to note here is that their overall loan to value ratio has only increased ever so slightly to 84%.
Tim and Emily are now financially positioning themselves to  purchase their first family home as they are about to have their second child.  They have worked out a plan with their mortgage broker to purchase a luxury home within the next 2-3 years without having to sell any of their properties.

Jack and Shannon
Wednesday, July 14, 2010

Jack and Shannon are both in their early 50’s. They are married with 2 children that have now left home. Jack and Shannon have $123,000 left to pay off their home loan (home is valued at $580,000). They have no other loans, own no shares but have $170,000 in superannuation.
They have $300 per week which they wanted to invest in creating a larger nest egg on retirement (10 years time). They decided to invest in a property in South East QLD. They purchased a 4 Bedroom house for $370,000 which has cost them $260 per week in the first year of ownership; and now costing $250 per week (due to rent increasing greater than the many interest rate rises).
Their property is now worth approx $450,000 after 2 years. They expect the value of the property to increase to $900,000 by the time they will retire; giving them an extra $300,000 to put towards their superannuation and partly towards a 10 month trip around Australia as a retirement present to themselves.

Luke
Wednesday, July 14, 2010

Luke is currently 23 years old and earns $65,000 pa. He has saved $15,000 to put towards his first investment property. Luke has seen a specialist mortgage consultant and is able to borrow funds to purchase a $340,000 property. After reading the research and studying the facts, Luke decided a house in Victoria would be the best investment option for him. The house must be constructed yet, as Luke purchased the land first (saving $6,500 in stamp duty) and is now expecting the house to start within the next few weeks. Luke is anticipating the house (once completed) to be worth about $15-20,000 more than he paid for the land and construction of the house combined.
Luke’s goal is to buy his second property within 2 years of his first. He will use the equity in this property as the deposit on his second. If Luke continues to build a property portfolio that is well researched, while remaining within his cash flow, he expects to be worth about $1.5m net by the age of 35.

Kate and Charley
Tuesday, July 13, 2010

Kate and Charley have no kids and earn a combined income of $150,000. They rent a property in Sydney for $690 per week. After saving $42,000 they want to buy a property to live in.
Kate and Charley have finance approval to buy a $600,000 property. A Property Mentor sat with them and showed them that a $600,000 property will cost them $1,105 per week to live in. However, if it was to be an investment property and they rented it out, had all the interest and costs as a tax deduction, plus being able to have all the fixtures, fittings and building as tax deductions, the cost would only be $160 per week to hold and control the $600,000 asset. Even after they pay rent of $690 per week they are still $255 per week better off (live in $1,105 per week versus renting it out and costing them $160 per week + $690 per week rent they are paying).

That is over $13,000 per year in savings. They could put this towards reducing the debt (creating equity), invest in another property down the track, invest in shares, top up super, start or invest in a business – at the end of the day, they have more choices NOW and in the future!

Leanne
Tuesday, July 13, 2010

Leeanne initially came in to see an experienced Property Mentor at APS Growth back in 2007. At the time she was a single 26 years old earning $70,000 per annum and had one investment property. She was looking to use the equity (money under the lounge room floor) in her first property to start building her investment portfolio. After sitting down with APS Growth and going through the ‘numbers’ on purchasing another property worth $360k, Leeanne found her ‘out of pocket’ cost was going to be approximately $150 per week.  As Leeanne could fit this cost into her budget, she decided to use the well researched findings that Aps Growth specialises in to purchase a House in SE Qld.

At the end of 2008 Leeanne’s construction completed and she settled on her property. A tenant moved in a few days after settlement and has been there ever since. Upon coming back in to Aps Growth for a post settlement meeting to evaluate the actual ‘numbers’, her holding costs for this property are now only $30 pw. The major factor was interest rates. When Leeanne came in at the start interest rates were 7.6%, they’re currently below 5.24%.  As you can imagine Leeanne was thrilled with the outcome of this purchase and is already starting to think of purchasing her third property.

Should you wish to come in and meet with one of our Property Mentors to go through your figures again or were wondering how much an investment property would cost you (being your first or third +), please call either 1300 881 402 or e-mail admin@apsgrowth.com