Has your portfolio hit a brick wall? You’re not alone. With interest rates where they are today, cash that once was saved for your next step is now being spent on keeping the properties you already have, potentially stunting your goal towards financial freedom.
It doesn’t have to be like that, we want to take you through our 6-step process we like to call ‘Flipping it on its head’. We’ve used this strategy with many of our clients who have been lumped with poor cash flow and are unable to move forward. Let’s dig into it.
How does The Flip work?
Essentially, we look to optimise your current spending on interest and reapportion your debt. This allows you some more wiggle room to make additional payments on PPR debt, accelerate pay off and unlock equity for future purchases.
With our expert guidance and accurate forecasting, you can seek to save tens of thousands of dollars in interest payments and make the next move with your property portfolio.
What are the stages?
First up we assess your current financial standpoint. The number of properties you hold, the amount of debt you have, the interest you’re paying and their effects on your tax. It’s important to have a really clear picture of where all debt is accrued and the areas that are creating the most pain for you financially. From here, we would look to refinance and restructure your existing facilities to help ease the impact of interest rates and drive them down. This creates savings from day one and can play into your portfolio strategy long term.
Next up, we look to reapportion your debt to maximise tax effectiveness. This will look at shifting your loan to-value ratio and tactically restructuring the proportion of debt across properties to increase the amount that can be claimed back on tax. Often, we see clients have an uneven apportion of their debt, meaning that they have to pay interest and additional tax charges on top.
Reduce PPR debt
Once the restructuring is complete, you’ll have more collateral to reduce your overall PPR debt. Using the gains from the reapportioned debt you can expect reduced interest rates in the immediate and long term.
Accelerate debt pay off
Using the savings accrued from refinancing and restructuring, we would implement an accelerated repayment strategy. Not only reducing the term of the mortgage but further saving on years of interest rates.
With all your finances structured and debt paid off at a more rapid rate, you’ll unlock equity through a deposit and equity loan. Tapping into the equity that was created within the property we were able to reapportion that and apply that debt as being good debt or tax-effective debt. Using these additional funds identified through this step to help move you forward with the purchase of your next investment property.
Purchase your next investment property
The final step. Expanding your portfolio by purchasing your next investment. Ramsey offers on-the-ground expertise and access to high yield property investment corridors, designed to give your portfolio the lift on performance, our Property portfolio plans stage out what types if properties needs to be purchased at what yield to achieve your goals and our Buyers Acquisition Specialist will source and present these properties complete with the due-diligence you require to make your decision, negotiate on price and deliver the property through to settlement and rental.
What’s the outcome?
Of course, the primary outcome is the purchase of your new property. But it doesn’t stop there. These critical stages in obtaining specialist advice will elevate you to a position towards a life where passive income is a reality, placing you in a good standpoint financially. Here are some of the other outcomes you can expect when working with a Ramsey Property Specialist:
- The ability to build on a strong portfolio. Pulling you out of stagnation and proceeding forward with a firm strategy stepping out and staging your moves reflective of your current and future property wealth goals.
- Less stress about interest rates and how they might affect your portfolio. Our accurate forecasts will help you make informed decisions.
- A long-term plan which accounts for inflation giving you a big picture view of your financial future.
- Confidence in your next steps forward. We are experts In providing strategic advice on building a profitable property investment
portfolio through experience and expertise. To see how much our expertise is valued and the types of clients we help, we welcome you
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With the Ramsey Mortgage and Property Advisory Teams on your side, regardless of the changes in interest rates, you can move your portfolio forward with the right strategy and planning. So, if you want to take the first step to build your portfolio, why not speak to the team today on 1300 001 215.