While exploring more sophisticated property investment strategies to further their wealth creation efforts, John Martinovic and his wife continue to be inspired by the same goal they had since day one—to provide a financially secure future for their twin children by passing on both their assets and the wisdom they have acquired through the years.
Four years into their journey, the couple has successfully maintained a loan-to-value ratio of 70 per cent, a figure that they are both comfortable with as they move to seek more opportunities in the vast property investment landscape.
“We're comfortable. We always want to be comfortable… and we've got back up plan[s] A, B and C there, too—from the smallest sort of bump to absolute worst case scenario,” John shared.
The property investors want to maintain a level of risk they are comfortable with to ensure that they are going to leave a good legacy that is a strong property portfolio to their twin children, who just turned six this year.
According to John, as early as now, they could not afford to have “catastrophic issues” that can delay or ultimately derail their journey.
“The reality is we don't believe our kids are going to be able to afford a home one day. If we can leave them at least one property to say, ‘Okay, well, here's a bit of income’ or "Here's [a] unit, do what you want with it," at some stage, [then it’s] all well and good… At this stage, they're looking pretty good. Doing and saying all the right things… We'll let them know what we've got,” he saids.
Right now, the couple has most of their properties in their personal names, while some have been purchased with a soft-managed super fund, and will continue to explore different aspects of property investment including investing in a block of units and developing a duplex or a townhouse.
At the end of the day, wherever their property investment journey takes them, John and his wife hope to afford financial freedom for themselves soon—so that they can guide their children towards continuing their wealth-creation efforts in the future.
Their advice to property investors who are also doting parents: Talk to as many people as you can and learn from their triumphs and missteps—a solid preparation for the day when you have to act as your own children’s mentors.
Tune in to John Martinovic’s episode on The Smart Property Investment Show to know more about why he decided to be “pedantic” about his property portfolio and why he believes that keeping on top of his finances now will not only safeguard the future of his children but enable him and his wife to be debt-free by 45.