Unless you’re a movie star, your personal finances will decrease as a result of divorce or separation, and you may feel like you are starting out all over again. By cleverly managing your settlement funds, you can swiftly build a property portolio that’s even stronger than the one you had before. If you are in Mike’s situation, chat now to Vizion Group and get your roadmap to property success.
Why Work With Vizion Group Qld
Married to Janet and with their Sydney home almost paid off, Mike had always felt financially secure. His job as a marketing director brought in decent money and with Janet’s government job, they both enjoyed plenty of holidays, meals out and luxuries. The struggles they had both endured to save for their mortgage and pay off their home seemed far behind them.
Financially the couple were doing well but their relationship wasn’t and as the 2015 New Year celebrations rang through, Mike was at home alone contemplating his divorce settlement.
The divorce was a double-edged sword for Mike as he was pleased with his decision to regain his independence and yet his finances had taken a battering almost overnight. Left with $130,000 to buy a new home and his savings pretty much swallowed up by numerous legal and moving costs, Mike felt like he was starting over and now behind the eight ball. Needing to be close to Sydney for his job and yet unable to afford a decent property in his old neighbourhood he felt trapped.
In truth, the divorce was a wakeup call for Mike who decided to start investigating his options, something he hadn’t done for many years. He spent every evening researching and realised that he could not only start over, but make a success of it. Leaving $130,000 in the bank wasn’t a financially sensible option and he knew that he was still earning good money from his job and could qualify for a bank loan to buy an investment property.
He realised that he could use his $130,000 to purchase a duplex on the Sunshine Coast which would be fully managed and tenanted. This would mean that he could continue to rent his nice new apartment in Sydney, keep his job and also invest his money into a lower cost, yet high investment property. It meant that the mortgage he took out would be covered by the rent he received and that the property would soon be paid off.
With future plans to reinvest his equity and purchase more rental properties, Mike felt confident that his finances would soon be on the road to repair. In fact, it looked like they might be even better!