Home > Residential Property Acquisitions > Residential Case Study
Residential Case Study
A client portfolio strategy and implementation
From Renovation Dreams to Investment Success
In 2003, our client purchased a Victorian weatherboard home in Yarraville for $346,000 with the intention of renovating it in the near future. At the time, their finances included a home loan and a car loan, and they were managing typical family expenses.
As incomes increased slightly over the next few years, our client initially considered renovating their home. However, with previous experience as a real estate property manager, they decided to invest in property rather than renovating. Their primary goal was to maximise their financial returns and build long-term wealth, without specific plans to upgrade or move at that point.
Like others, a key concern was debt serviceability – particularly with an investment property in Footscray, which was in the early stages of gentrification. With low rental returns covering only part of the loan, the client was naturally cautious about taking on more debt.
How Performance Property Helped
The team at Performance Property provided expert insights into portfolio-building strategies, demonstrating a clear path forward. They showed how the equity in the client’s first property could be leveraged to secure additional loans, supporting our client to systematically grow a portfolio of investment properties and achieve their goal of a new principal home over 15 years.
When our client was ready to upgrade their primary residence, Performance Property developed a customised strategy to sell two properties at market peak to boost cash flow and reduce debt. This strategy improved borrowing capacity and provided the funds necessary to purchase a bigger and better principal place of residence (PPOR).
Outcomes
With Performance Property’s guidance, our client was able to achieve significant financial growth where they have:
- Built a portfolio of four investment properties, and upgraded to a new PPOR.
- Increased cash flow, reduced debt, and gained financial flexibility to pursue new property goals.
- Positioned themselves to move into their dream home.
The client describes the support and communication from our team as “incredible,” with dedicated advisors, consultants, and property managers guiding them through the entire process of buying, selling, and managing their investments.
Future Plans
With Performance Property’s help, our client now has a clear path forward, which includes:
- Holding the remaining two investment properties until they peak.
- Selling when appropriate to pay down the remaining home loan.
- Purchasing a new investment property to continue building wealth.
With tailored advice, effective strategies, and continuous support, the client is able to reduce debt, build wealth, and position themselves for future financial security.
If you are looking to review your portfolio or wanting strategic advice on investment opportunities, contact our team for a consultation below.