Tom and Khali Wilson
How a Young Couple Saved $32,000 oﬀ their Mortgage
and Put Themselves in a Position To Pay Oﬀ Their Home Two Years Earlier Than Expected
Tom and Khali Wilson attend one of events back in 2016. Both aged 31 with one child, they were keen to understand how to safely invest in property.
They had heard all the horror stories of having to deal with tenants from hell and on top of that were scared to borrow against their home. Tom works as an engineer whilst Khali Wilson works in the communications industry.
They wanted to get ahead and start investing, but did not want thefinancial stress of paying off another mortgage. They were cautious about taking on more debt and wanted to ensure that their family home in the suburb of Reservoir was not put at risk as it not only provided a safe haven for them and their child, but also had sentimental value as it was once lived in by Toms’ grand parents.
We sat down with them and we looked at lending options, running some revenue modelling and potential monthly repayment figures.The thing that they were most curious about was how to invest in property without it effecting their lifestyle and how to set up buffers and safety nets (which was something we covered at the recent education event which they attended). We explained that if you are buying property, it is important to do it in the safest way possible. Specifically we always look to using two lenders so we don’t put the clients own home at risk and discussed the importance of having cash left over for the ‘just in-cases’ and risk covers in place for anything than can and sometime does go wrong.
We also spoke about the emotional ride when buying your first investment and all the things we had in place to counteract any of these potential problems. We assisted with locating a $520,000 property with rental income of $470 per week. We structured everything so they were actually now ahead by an extra $90 per week after tax. We directed this extra income into the loan on their home meaning they would be mortgage free just over two years earlier and save over $32,000 in interest payments. This is on top of the capital growth in the investment property over the coming years. Once their equity increases in the two homes they will be looking to buy their next one.
Investment Purchase: Positive cash flow after tax
Rental income: $90 per week positive cash flow after tax
Outcome: Using the savings as extra repayments on their house would pay their loan off in just 2 years
Savings: $32,000 in interest and payments
Most of what we are taught in school, from our family and friends, the majority of the media and even the ones that seem like they have your best interests at heart will not
necessarily provide you with the freedom you wantfinancially. Tom and Khali are the perfect example that one needs to look and not listen. After a few purposeful meetings,
both were suddenly excited about the possibilities of doing what nobody through many generations of their family had been able to achieve … Financial Freedom.
“We were so nervous and had so many doubts going into this that we thought about pulling the pin so many times. We learnt that we don’t know everything and sometimes things are not as difficult as they seem. Our friends told us that we shouldn’t do this, our parents told us to forget about investing and just work hard. We had heard so many horror stories but somehow, had never managed to find all the success stories around. I guess our minds were just looking the bad and not the good. After we met the mortgage team at Wealth For Life Mortgage Solutions we couldn’t believe how east this process actually was. There are so many things that we are never taught, which kept us ignorant and struggling. The changes we had to make were quite small but the results were enormous. We could never have done this without the support and encouragement of Wealth For Life Mortgage Solutions.”Tom and Khali Wilson