Equity Release

03 Dec Equity Release

During COVID 19, a client of ours had the opportunity to purchase an investment property in Sydney from a distressed sale. The condition of the property was poor which allowed the client to make significant improvements to the property to improve the Real Estate value.  

Issues

• The client had no cash savings;
• The business financial records are not completed.

Partnership Solutions (Aston Partners and Traverse Accountants)

• Initiate the discussion with the client and using the real-time property valuation tool, we discovered the client’s current primary place of resident is valued more than $1.5M with $700K of equity available to be released.
• We proposed a  strategy to refinance the investment property and release the equity from the current investment property to use  as the deposit to purchase the investment property;
• We found a lender who would accept an Accountants Declaration as the only source of income evidence and release the equity to purchase the property.

Client Win

• The client was able to seize the opportunity to purchase the investment property and through some renovations create an uplift in value from $850K to $1.3M in 6 months;  
• Currently, the client is using the same strategy to release equity to purchase a third property.