Weekly Round Up

• Inflation numbers were out this week. Interest rate markets now pricing in no further rate rises for now.

• NAB reports a 15% decline in new mortgage applications in 3 months. We are seeing similar across all lenders. This is great news for you as banks are now competing on rates for the first time in several years. Lets make sure you are in it to win it - book below and lets chat about making sure your home loan rate is as sharp as it can be.

• Case Study - How we helped a Sydney family buy acreage years before they thought they could. They are now out making priceless memories.

Case Study - How We Helped Sydney Based Rip and Beth Buy Their Dream Farm with their Kids.

Rip and Beth (yes real clients but not their real names of course) in their early 40s own a house in Allambie worth $2.1m. They had a mortgage of 700k.

They were looking for acreage so their kids could grow up with a bit of country in them.

Rip earns $210k PAYG in the transport industry, Beth is self employed as a social media consultant and earns $110k. They can both partly work from home and their kids are 6 and 8.

They came to us knowing they wanted this dream but didn’t know how to start.

Step 1.

We gave them our Acreage Readiness Quiz to work through the issues (see below for link to the quiz):

This helped them narrow down:

• Size

• Distance from Sydney

• Budget

• Trade offs around commuting, WFH, school sports and the deal breakers of the property vs nice to have. 

We looked at their overall financial position and came up with an initial budget of 800k

Using our Thunderbolt Six Method, we got them a finance pre-approval, then assisted with locating and purchasing their acreage plus a run down farmhouse just north of Maitland.

Using some rural cash flow strategies, we added $25k annual income to the acreage and avoided land tax, significantly reducing the annual cost and thus bringing forward years of waiting. We also put in place a 7 year transition plan so that as the kids got older and cash flow permitted, they could spend more time at the farm and make some improvements.

We set aside 50k for a shed and other immediate improvements. We also set up the property as a part time Airbnb to earn some additional cash flow at peak holiday times.

We advised around acreage size and lenders who worked for their situation and we worked with their financial planner and accountant around structuring loans. 

As a result, Rip and Beth are now making memories with their kids years earlier than they thought they would. They have bought the right acreage that is close enough for them to use regularly and set up to be cash flow neutral within 3 years.

Want to create lifelong memories with your kids? Dont miss the window. You are probably closer than you think.

Complete our Acreage Readiness Quiz and get your Get To The Farm Score:

 Acreage Readiness Quiz - Your GET TO THE FARM score.

Or hit reply and lets chat.

Get Your Financial Plan in Place

Its trial HSC exams this month so not going too far - we are in Canberra and Jindabyne.

Want to discuss your financial needs? Lets catch up in person or via Zoom

That’s it for this week.

Keep showing up and keep cheering each other on — life is better when we support each other.

Reggie and the Thunderbolt Team