Case Study 2: Kramer & Elaine’s Property Portfolio

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Case Study 2: Kramer & Elaine’s Property Portfolio

Kramer & Elaine hadn’t received sound advice prior to meeting Nationwide, however since our initial chat, their wealth has increased exponentially!

The following case study relates to a real life example of how we helped Kramer and Elaine, achieve the following results in 10 years

$107,103

In tax savings

2.5X 

Increase their property portfolio by 3 times

1,289,771

Increase in net wealth over original investment holdings

Don’t forget you can still book an online appointment with us – we’ll give you a call and have quick chat – no obligation! :)​​

Our clients

Kramer and Elaine were referred to us by their bank manager around 10 years ago. They were experienced investors who owned a significant share portfolio and two investment properties that they were paying off.

They wanted to expand their property portfolio but had limited surplus cash flow to do it. They asked us to review the tax-effectiveness of their financial arrangements, and advise them whether they had the capacity to increase their property holdings.

The problems before we got involved

  • Whilst Kramer and Elaine owned a modest investment portfolio, their ineffective tax structure had limited their capacity to build additional family wealth
  • They were making significant principal repayments on their investment loans, which was effectively increasing their tax liability and providing zero return on principal
  • They had significant equity but no surplus cash flow to comfortably fund additional investment properties
  • They felt that their existing financial adviser lacked the expertise to take their family wealth to the next level, and required additional expertise to work their assets harder and smarter

How Nationwide Accountants & Advisers helped Kramer and Elaine

  • We conducted a financial health diagnostic to clearly understand what they wanted to achieve from a lifestyle and financial point of view, as well as what financial assets and resources they had to work with
  • We considered multiple scenarios and customised a financial roadmap, detailing – step by step – tax strategies and investment options available and required to reach their goals
  • We restructured their investment loans so that they can increase their tax benefits and surplus cash flow
  • We created a tax-free funding facility to provide additional cash flow to increase investment potential and to provide emergency funds that can be used to continue to fund their wealth creation and lifestyle regardless of what life throws at them
  • We gave Kramer and Elaine the confidence they required to safely purchase and fund additional investment properties over time

The results

Since adopting our recommendations, Kramer and Elaine have achieved the following:

  • We helped Kramer and Elaine successfully double (and a half!) their property portfolio over the last 10 years
  • As a result of their financial roadmap, they have achieved a total of $72,668 in tax refunds and savings
  • Over the past 10 years, Kramer and Elaine have purchased an additional 3 investment properties and accumulated in excess of $1,289,771 in net wealth, over and above their original investments
  • They have a $2,387,755 property portfolio which is entirely self-funding and enjoying the benefits of compounding growth, which should provide a significantly greater pay-off over time

Post becoming clients

We meet with Kramer & Elaine at least twice a year to monitor their progress towards their financial goals, as well as to identify additional tax and investment opportunities that may be available to them.

Don’t forget you can still book an online appointment with us – we’ll give you a call and have quick chat – no obligation! :)​​

 

Please Note: Whilst this is an actual example, all personal details have been changed, for confidentiality purposes.


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