Johnathan was introduced to us through a family member. A very responsible and hardworking young man living in Melbourne, he had been working as a sales manager for over 3 years and was on a decent income – $92,000. He had worked hard and had saved $120,000 over the years. Clearly he was ready to enter the market.
Due to a combination of his efforts and family contributions, he had $100,000 sitting in his savings account over three months (genuine savings policy). As a result of this and because he was purchasing an investment property, we were able to take his borrowing to a maximum 90% LVR – (Loan to Valuation Revenue) that is $468,000. With a rental return $465 per week.
As he is purchasing a brand new house and land package, Johnathan only needs to pay stamp duty on the land. He is entitled to purchase as many ‘investment’ properties as he likes without using his First Home Owners Grant. When he is ready to purchase his owner occupied property he can claim the grant.
For $520,000 he acquired one of our brand new house and land packages at Coomera, 4 bedrooms, 2 bathrooms, 2 carparks and a large block of land.
It wasn’t all smooth sailing
Age: Although he ticked the boxes in terms of the Bank’s requirement, the Lender had issues with Johnathan’s age and commitment. We had to jump through a lot of hoops to convince the Lender that it has nothing to do with how old ‘the client’ is but how he has conducted himself. He has an excellent credit file, evidence of savings – demonstrated his commitment and very little liabilities. He also lived with his Mum, which had allowed him to save on living costs.
Valuation: We also had issues with the valuation of the property – they came back slightly under the purchase price (very normal) on a new house and land in the area.
Experience certainly helps in situations like this
Working with a very experienced team, Malyson from Jassay Finance and I, certainly helped. Our credibility and experience were able to back him up. We both knew he was a very responsible young man. We had to do two things.
- As a broker, Malyson backed his story up by her personal recommendations to the Lender. She has placed many quality deals with this Lender, having this long standing relationship also helped as she knew their products and policies.
- As a property specialist, we had worked with this particular Builder over 30 odd years. I was able to speak to the Builder to compromise their price to match the valuation ‘short-fall’. Although we have corresponded over 6 -12 months and have never met, Johnathan kept holding onto to our service. He knew he was in good hands.
We can honestly say, without the years of experiences we had between us, this deal would not have happened.
The final outcome
We want good customers like Johnathan – young, and thriving. Our goal is to build a strong relationships and trust for a very long time, especially as young as Johnathan. If we look after him well from the initial first point of contact, chances are he will require our service for many years to come and we are in for the long haul. It is important that we select the right loan and property for our customers. I will only recommend a property of value and growth so Johnathan can look at using the equity to build his investment portfolio.
The team also lined him up with a property manager to take care of the rental and management. The moment the property was completed, Johnathan had tenants waiting to move in. The lease was signed 12-18 months and has never been vacant.
Johnathan’s future is looking bright. We have already discussed a strategy to help him purchase his second investment property.
If you are ready to jump into purchasing your First Home or investment property then phone or text me at 0408 724 500 or email me at email@example.com. We have an unbelievable promotion running at the minute so everyone can get into the market. You can view that here – https://www.austland.com.au/property-investment-opportunities/
I’m looking forward to guiding you through your property wealth journey.