Finance advice

What is the right balance of loan-to-value ratio?

By Bianca Dabu
property investments, right balance of loan-to-value ratio, debt, personal finances

Debt is always an issue for most property investors, but property accountant Munzurul Khan believes that one can achieve a comfortable loan-to-value ratio as long as he understands his personal financial circumstances.

According to Smart Property Investment’s Phil Tarrant, loan-to-value ratio (LVR) basically determines “how big is the asset and what is the debt against it”.

However, instead of asking the right balance between loan and value, one will do better to understand his current position as a property investor.

Munzurul said: “[I say to my clients], ‘Let's take a step back and let's understand where are you at the moment. What's your income? What's your asset value … ? What are your goals and objectives?’ [Then I ask], ‘If this is where you are financially and this is where you would like to be financially, what's the time frame?’ "

“[A longer] time frame means that you can afford to have a lower level of LVR—that means your purchases are rather slow but you've got a longer time frame so you can [still achieve your goals].

“If your time frame is rather short, then ... perhaps your LVR needs to be a little bit higher,” the accountant added.

The higher the LVR, the greater the level of risk, so a property investor must also be able to determine how much risk he is willing to take, the level of experience he has to be able to handle the challenges that he could face along the way, and the buffer he is willing to establish for when anything goes wrong.

According to Munzurul: “As long as ... you've got some of the uncertainties in your mind and possible mitigation of [those] uncertainties, the LVR arguably can be a little bit higher.”

Is there a golden rule?

While a comfortable LVR position could not be generalised for all investors, Munzurul said that most people tend to start with a high loan-to-value ratio. This strategy gives them more access to a bigger fund and, consequently, a bigger level of asset growth.

However, the decision to go over 80 per cent LVR must still depend on the type of property that one is looking to buy as high growth potential entails more extra costs.

Munzurul explained: “If you .... buy a lower level of property, say [a] $300,000 to $400,000-purchase, the extra cost is rather low, but if you're buying a million dollar-purchase, as an example, your [Lender Mortgage Insurance] would be about $35,000 to $40,000.”

“That example of a million dollar-purchase, that one probably suggests that you don't go to anything over 80 per cent. But a lower purchase, [like] $300,000-$400,000, if your risk profile is okay … [and you have clear] goals and objectives, you might wish to go a little bit higher than that,” he added.

Ideally, a property investor can start with a high LVR, aim to go back to 80 per cent over time, and then work hard to make it go lower.

“If you go into 70 per cent [LVR] over a period of time … or 65 per cent … you've got about 1/3 of the equity and 2/3 of the banking funding, so there is quite a bit of ... buffer,” the accountant said.

This will give the property investor a chance to draw down on the equity and use it to fund his portfolio based, still, on his personal risk confidence level.

Phil explained: “[Your] risk confidence level [may] sit between 60 and 80. You might tip up and tip down, and tip-up and tip-down, that's what people do.”

“As long as the objective of tip-up is to build another growth asset ... then that's a good debt. But if the objective of that tip-up is that we take away a bit of funding and we go away and do other things and we have a little bit of fun, that is a bad funding,” Munzurul added.

In summary, property investors must consider the following when determining the most comfortable LVR position for themselves:

  1. Age bracket
  2. Risk profile
  3. Investment goals and objectives
  4. Personal time frame
  5. Type of property to buy

‘All-inclusive’ computation

At the end of the day, it’s all about striking a good balance between the cash flow in your portfolio and the debt you hold against it—the higher the debt, the higher the need to generate cash in order to service the property portfolio.

Instead of having a singular outlook regarding the process of determining a good loan-to-value ratio, the calculation needs to be “all-inclusive”.

Munzurul said: “If [you’re] borrowing at 80 per cent, one probably should not be [taking that] 80 per cent of the purchase price as our loan and mortgage and interest cost. One probably should explore that a bit—where is the balance of that 20 per cent coming in?”

“Is that a genuine cash [or] is that being acquired and extracted from my principal place of residence? Either way, there is a cost involved to it … [so] the calculation of the cash flow should be done at 100 per cent of your mortgage, even with the fact that you borrow 80 per cent [or more].

“Add in all the incidental costs … That gives you the true, true, true cash flow. Rather conservative, but the safer,” the accountant explained further.

Phil concluded: “[You] shouldn't just be thinking about LVR as in an equity position [but also] how the LVR on a property or portfolio affects your capacity to keep growing [in relation with the] cash flow consequence of holding a property.”

Tune in to Munzurul Khan’s new episode on The Smart Property Investment Show to know more about the ins and outs of diversification and the right time to invest into other asset clouds, as well as the risks associated with having two names on a mortgage and title and which one is preferable to new home buyers.

NEWSLETTER
Be the first to hear the latest property investment insights
 
Email:
promoted stories

podcast

object(stdClass)#1237 (52) {
  ["id"]=>
  string(5) "18297"
  ["title"]=>
  string(72) "Mortgages in a tighter lending economy and why Brisbane is a good option"
  ["alias"]=>
  string(72) "mortgages-in-a-tighter-lending-economy-and-why-brisbane-is-a-good-option"
  ["introtext"]=>
  string(255) "

Tune in to the latest episode of Property Showcase, the podcast with the inside track on the products and businesses that will help turbocharge your portfolio, maximise returns and make your overall investment experience seamless and stress-free!

" ["fulltext"]=> string(818) "

To hear more about these services, make sure to tune in to this episode of Property Showcase!

 Make sure you never miss an episode by subscribing to us now on iTunes!

" ["checked_out"]=> string(1) "0" ["checked_out_time"]=> string(19) "0000-00-00 00:00:00" ["catid"]=> string(2) "82" ["created"]=> string(19) "2018-07-18 05:50:45" ["created_by"]=> string(4) "1689" ["created_by_alias"]=> string(0) "" ["state"]=> string(1) "1" ["modified"]=> string(19) "2018-07-18 06:37:06" ["modified_by"]=> string(4) "1689" ["modified_by_name"]=> string(12) "Todd Stevens" ["publish_up"]=> string(19) "2018-07-18 06:02:12" ["publish_down"]=> string(19) "0000-00-00 00:00:00" ["images"]=> string(173) "{"image_intro":"","float_intro":"","image_intro_alt":"","image_intro_caption":"","image_fulltext":"","float_fulltext":"","image_fulltext_alt":"","image_fulltext_caption":""}" ["urls"]=> string(121) "{"urla":false,"urlatext":"","targeta":"","urlb":false,"urlbtext":"","targetb":"","urlc":false,"urlctext":"","targetc":""}" ["attribs"]=> string(3127) "{"article_layout":"","show_title":"","link_titles":"","show_tags":"","show_intro":"","info_block_position":"","info_block_show_title":"","show_category":"","link_category":"","show_parent_category":"","link_parent_category":"","show_associations":"","show_author":"","link_author":"","show_create_date":"","show_modify_date":"","show_publish_date":"","show_item_navigation":"","show_icons":"","show_print_icon":"","show_email_icon":"","show_vote":"","show_hits":"","show_noauth":"","urls_position":"","alternative_readmore":"","article_page_title":"","show_publishing_options":"","show_article_options":"","show_urls_images_backend":"","show_urls_images_frontend":"","canonical_link":"","transcript":"","clientName1":"Rethink Investing","clientDesc1":"

Son Pham is the accredited Head of Mortgages at Rethink Financing\/Rethink Investing. He has over 6 years\u2019 experience writing loans, over 12 years in the wealth management industry working for the likes of CBA, AMP and private practice and he is also a licenced financial planner (AFSL 326450). He has multiple investment properties that are cash flow positive which help pay his mortgage on his home and fund his lifestyle.<\/p>\r\n

Son is able to write all types of residential and commercial property loans.<\/p>\r\n

In this episode of Property Showcase, head of mortgages at Rethink investing Son Pham joins host Tim Neary to unpack how an investor should approach getting a mortgage in place with banks tightening down on serviceability.<\/p>\r\n

Hear from\u00a0Son\u00a0about:\u00a0<\/p>\r\n

    \r\n
  • The pitfalls that he has seen people get into<\/li>\r\n
  • Interest only loans and if that is the way to go<\/li>\r\n
  • How the mortgage division supports the overall business of Rethink Investing<\/li>\r\n<\/ul>","clientImage1":"images\/podcasts\/Son-Pham.jpg","clientUrl1":"https:\/\/rethinkinvesting.com.au\/","clientName2":"OpenCorp","clientDesc2":"

    Whether it\u2019s building a successful property portfolio or investing in one of their Development Funds, Open Corp can help you through every stage of your investment journey. The team has 40 property specialists who collectively have been involved in over $4 billion worth of property transactions and the acquisition of more than 8000 homes and investment properties.<\/p>\r\n

    In this episode of Property Showcase, director of investment services for Open Corp Michael Beresford,\u00a0joins\u00a0editor of Real Estate, Tim Neary to share why he disagrees that the cooling market means that the best times are behind us.<\/p>\r\n

    In this episode, hear from\u00a0Michael\u00a0about:\u00a0<\/p>\r\n

      \r\n
    • Why Brisbane is a good investment option right now<\/li>\r\n
    • How he wants to help clients take advantage of the current market<\/li>\r\n
    • Why negative press can be good for investors<\/li>\r\n<\/ul>","clientImage2":"images\/podcasts\/Michael-Beresford-170x170.jpg","clientUrl2":"https:\/\/www.opencorp.com.au\/","clientName3":"","clientDesc3":"","clientImage3":"","clientUrl3":"","clientName4":"","clientDesc4":"","clientImage4":"","clientUrl4":"","author_promotion_line":""}" ["metadata"]=> string(53) "{"robots":"","author":"","rights":"","xreference":""}" ["metakey"]=> string(60) "mortgages, tighter, lending, economy, brisbane, good, option" ["metadesc"]=> string(200) "Tune in to the latest episode of Property Showcase, the podcast with the inside track on the products and businesses that will help turbocharge your portfolio, maximise returns and make your overall" ["access"]=> string(1) "1" ["hits"]=> string(2) "55" ["xreference"]=> string(0) "" ["featured"]=> string(1) "0" ["language"]=> string(1) "*" ["readmore"]=> string(3) "818" ["ordering"]=> string(1) "0" ["category_title"]=> string(17) "Property Showcase" ["category_route"]=> string(25) "podcast/property-showcase" ["category_access"]=> string(1) "1" ["category_alias"]=> string(17) "property-showcase" ["published"]=> string(1) "1" ["parents_published"]=> string(1) "1" ["lft"]=> string(2) "98" ["author"]=> string(12) "Todd Stevens" ["author_email"]=> string(33) "[email protected]" ["parent_title"]=> string(7) "Podcast" ["parent_id"]=> string(2) "48" ["parent_route"]=> string(7) "podcast" ["parent_alias"]=> string(7) "podcast" ["rating"]=> string(1) "0" ["rating_count"]=> string(1) "0" ["alternative_readmore"]=> NULL ["layout"]=> NULL ["params"]=> object(Joomla\Registry\Registry)#1204 (3) { ["data":protected]=> object(stdClass)#1201 (95) { ["article_layout"]=> string(14) "spbase:article" ["show_title"]=> string(1) "1" ["link_titles"]=> string(1) "1" ["show_intro"]=> string(1) "1" ["info_block_position"]=> string(1) "0" ["info_block_show_title"]=> string(1) "1" ["show_category"]=> string(1) "1" ["link_category"]=> string(1) "0" ["show_parent_category"]=> string(1) "0" ["link_parent_category"]=> string(1) "0" ["show_associations"]=> string(1) "0" ["flags"]=> string(1) "1" ["show_author"]=> string(1) "1" ["link_author"]=> string(1) "0" ["show_create_date"]=> string(1) "1" ["show_modify_date"]=> string(1) "1" ["show_publish_date"]=> string(1) "1" ["show_item_navigation"]=> string(1) "0" ["show_vote"]=> string(1) "0" ["show_readmore"]=> string(1) "1" ["show_readmore_title"]=> string(1) "0" ["readmore_limit"]=> string(3) "100" ["show_tags"]=> string(1) "1" ["show_icons"]=> string(1) "0" ["show_print_icon"]=> string(1) "0" ["show_email_icon"]=> string(1) "1" ["show_hits"]=> string(1) "0" ["show_noauth"]=> string(1) "0" ["urls_position"]=> string(1) "0" ["captcha"]=> string(0) "" ["show_publishing_options"]=> string(1) "1" ["show_article_options"]=> string(1) "1" ["save_history"]=> string(1) "0" ["history_limit"]=> int(10) ["show_urls_images_frontend"]=> string(1) "0" ["show_urls_images_backend"]=> string(1) "1" ["targeta"]=> int(0) ["targetb"]=> int(0) ["targetc"]=> int(0) ["float_intro"]=> string(5) "right" ["float_fulltext"]=> string(5) "right" ["category_layout"]=> string(6) "_:blog" ["show_category_heading_title_text"]=> string(1) "0" ["show_category_title"]=> string(1) "0" ["show_description"]=> string(1) "0" ["show_description_image"]=> string(1) "0" ["maxLevel"]=> string(1) "0" ["show_empty_categories"]=> string(1) "0" ["show_no_articles"]=> string(1) "1" ["show_subcat_desc"]=> string(1) "0" ["show_cat_num_articles"]=> string(1) "0" ["show_cat_tags"]=> string(1) "0" ["show_base_description"]=> string(1) "1" ["maxLevelcat"]=> string(2) "-1" ["show_empty_categories_cat"]=> string(1) "0" ["show_subcat_desc_cat"]=> string(1) "1" ["show_cat_num_articles_cat"]=> string(1) "1" ["num_leading_articles"]=> string(2) "15" ["num_intro_articles"]=> string(1) "0" ["num_columns"]=> string(1) "0" ["num_links"]=> string(1) "0" ["multi_column_order"]=> string(1) "0" ["show_subcategory_content"]=> string(1) "0" ["show_pagination_limit"]=> string(1) "1" ["filter_field"]=> string(4) "hide" ["show_headings"]=> string(1) "1" ["list_show_date"]=> string(1) "0" ["date_format"]=> string(0) "" ["list_show_hits"]=> string(1) "0" ["list_show_author"]=> string(1) "0" ["list_show_votes"]=> string(1) "0" ["list_show_ratings"]=> string(1) "0" ["orderby_pri"]=> string(4) "none" ["orderby_sec"]=> string(5) "rdate" ["order_date"]=> string(9) "published" ["show_pagination"]=> string(1) "2" ["show_pagination_results"]=> string(1) "1" ["show_featured"]=> string(4) "show" ["show_feed_link"]=> string(1) "1" ["feed_summary"]=> string(1) "0" ["feed_show_readmore"]=> string(1) "0" ["sef_advanced"]=> int(0) ["sef_ids"]=> int(0) ["custom_fields_enable"]=> string(1) "1" ["show_page_heading"]=> string(1) "0" ["layout_type"]=> string(4) "blog" ["menu_text"]=> int(1) ["menu_show"]=> int(1) ["page_title"]=> string(53) "Finance Tips and Insights - Smart Property Investment" ["menu-meta_description"]=> string(91) "Financial tips for property investors, from mortgages to cash flow to saving for a deposit." ["secure"]=> int(0) ["page_description"]=> string(11) "sample desc" ["page_rights"]=> NULL ["robots"]=> NULL ["access-view"]=> bool(true) } ["initialized":protected]=> bool(true) ["separator"]=> string(1) "." } ["displayDate"]=> string(19) "2018-07-18 05:50:45" ["slug"]=> string(78) "18297:mortgages-in-a-tighter-lending-economy-and-why-brisbane-is-a-good-option" ["catslug"]=> string(20) "82:property-showcase" ["link"]=> string(106) "/podcasts/property-showcase/18297-mortgages-in-a-tighter-lending-economy-and-why-brisbane-is-a-good-option" }
Mortgages in a tighter lending economy and why Brisbane is a good option
object(stdClass)#1215 (52) {
  ["id"]=>
  string(5) "18293"
  ["title"]=>
  string(82) "Stories of success: The migrants that became Australia’s renowned Property Twins"
  ["alias"]=>
  string(89) "stories-of-success-from-living-in-low-socioeconomic-sydney-to-becoming-the-property-twins"
  ["introtext"]=>
  string(318) "

Sana and Mona Ali moved to Australia from Pakistan at the age of 15. Years later, the once-struggling migrants successfully turned their $40,000 savings into a $5 million-portfolio, earning the moniker “The Property Twins” — all before the age of 30. How did these millennials make their way to the top?

" ["fulltext"]=> string(9784) "

The Ali sisters lived in low socioeconomic conditions for years since arriving in Australia in 2000, but instead of accepting their fate, they used their circumstance as motivation to work hard and achieve financial security.

According to Sana: “Moving countries was a huge personal challenge. We were living in a low socioeconomic area of Sydney and we just saw people around us living really good lives. It really pushed us and made us wonder, ‘What if we could buy more than one house?’”

They initially wanted just a strong financial foundation for themselves and their family and the sense of security brought about by owning a home. In less than a decade, they got all of it and more.

Aside from being able to build a 10-property portfolio, the Ali sisters were also successful in establishing a mortgage business that aims to help investors make the best decisions for their own wealth-creation journeys.

“We just want to feel that Australia is really home and to have our roots here,” Mona highlighted.

How it all started

What they lacked in funds, the Ali sisters made up for continuous education, training and mentorship.

In 2009, they have both spent years in the Information Technology and Project Management fields before progressing through finance roles. The high-net worth individuals that they constantly work made them realise that there’s more they can aspire for than corporate jobs.

They started doing research and eventually bought their first property in Parramatta through their combined savings of $40,000 and the aid of the First Home Owners Grant. Seven months later, they bought their second property in Blacktown.

Mona shared: “I personally wasn’t a good saver, because I loved shopping and shoes. Nothing wrong with that, but looking back, it's like a ‘need it versus want it’ question. Obviously, I did buy a lot of shoes but we didn’t go travelling and all of that. So, we did have some savings.”

The Ali sisters opted for cheap properties in the lower end of the market to jumpstart their investment journey for low-entry prices.

“The cash flow meant when we did rent the properties out, they could look after themselves,” Mona highlighted.

Sana and Mona advise investors to avoid being afraid of starting small. Being realistic instead of aiming for a dream home on their first shot at investing helped them enter the market sooner than later.

After all, property investment is a long-term commitment and, essentially, a kind of “delayed gratification”.

The twin’s property portfolio grew to consist of eight more properties spread across Western Sydney and Brisbane, including units, villas and townhouses.

Strategies

Not long after they started investing in properties, the Ali sisters sold their first two properties in Sydney to take advantage of the property boom that happened in the city. Prior to selling, they did cosmetic renovations on these properties to add value and eventually extracted equity from them.

The first property returned around $330,000 while the second property returned around $190,000.

Mona and Sana used the extracted equity to make their third and fourth property purchase, which are strata properties located in Blacktown. Less than 10 years later, the same properties have increased in value by 90 to 100 per cent.

As the market went more stagnant, Mona and Sana continued increasing their savings to improve the buffer for their portfolio. They saved 20 to 30 per cent of their salary, sacrificed travels, minimised eating out and drove a Kia Rio for years to save as much as they could.

For years, they carefully weighed their needs and wants to determine the things they could live without as they are building their portfolio.

Where to buy

The Ali sisters deliberately chose to buy most of their properties in the Western Sydney region, between Parramatta and Penrith.

According to them, having properties in such good locations, as in close to transport and other valuable infrastructure and establishments, helped them maintain good cash flow and minimise the impact of property investment on their finances and lifestyle.

While they have implemented different strategies throughout their investment journey, good location is one of their non-negotiables.

Sana explained: “We wanted to make sure the properties were well-located. That’s formed the foundation of our property strategy, where we make sure that properties are close to the train station, or a big shopping centre, because that’s what’s going to drive the demand down the track.”

Who to work with

Unlike many investors, the Ali sisters didn’t recognise the value added by property professionals to their portfolio in the beginning. In fact, it took them four purchases to seek the guidance of experts. Needless to say, it turned out to be among their more costly decisions.

According to Sana: “You don’t know what you don’t know, and we didn’t know any better. In hindsight, it would have been good to work with a broker for our initial couple of purchases.” 

Through online forums, they found out about the benefits of working with a mortgage broker and has since worked with a few throughout their investment journey. They taught them not only what they needed to know about mortgage broking, but also what they want to be done differently.

Eventually, Mona and Sana grew to love the “numbers side of property” and went on to establish their own mortgage business, The Property Twins. The business aims to empower investors by offering different services, including building portfolio roadmaps and finding better loans.

According to them, their personal experiences as investors consistently help them provide the best customer service and most effective advice even amidst changing broking spaces.

Mona said: “We really look at building road maps for our clients upfront. On paper, we really put the options down — lender A, B, C, D, in that order — so you continue maximising what's really possible for you."

“Whilst you have no control over the lending policies or where your interest rates go, if you’re making that strategic choice, you’re keeping a lot of doors open for later investment," she added.

Helping investors

As investors-turned-mortgage brokers, Mona and Sana seek to improve the knowledge of Australian investors and ultimately help them achieve their financial goals. Their experiences as investors who, quite literally, started from the bottom allow them to provide realistic and well-rounded advice to different types of investors.

Instead of acting as mere intermediaries who bring borrowers and lenders together, they take on a holistic approach and help budding investors establish a good foundation for their investment journey.

The most important advice they give to their clients is to always implement long-term strategies, but also be flexible enough to alter plans accordingly along the way.

Sana explained: “You need to look at the big picture rather than just one product or one rate focus, because it's a long-term strategy for you.” 

“We are taking our clients on a journey. It’s not about one transaction at a time, it’s about the big picture and really educating them through the process, through the decisions that they are going to be making — just talking through the pros and cons, the rates and how it's impacting them and what their plans are in the next six to 12 months," Mona highlighted.

Finding the right mentors is critical to success in property investment, according to them. Finding the ones who will be willing to understand your goals, capabilities and limitations as an investor and give you tailored advice will certainly help you fast track your wealth-creation journey.

In fact, Mona and Sana themselves have made it a point to stay in contact with their mentors even after they have successfully crossed the $5 million-line.

As mortgage brokers, the Ali sisters go above and beyond their responsibilities to serve as lessons and inspirations to budding investors.

Mona said: “It’s been really rewarding to see the changes that people have had or the smart decisions our clients have made over the last couple of months. Whilst we’re not property coaches or mentors, that naturally comes to us.

“We pretty much hold their hand and say, ‘Look, this is what we would buy, this is what would make a good property and this is what you should be looking for, and where you should be looking.’ When you’re working with someone who’s been there, where you want to go, you cut down 10 years’ worth of effort,” she concluded.

 

The information has been sourced from propertytwins.com.au, realestate.com.au, Daily Mail and the Smart Property Investment website.

" ["checked_out"]=> string(1) "0" ["checked_out_time"]=> string(19) "0000-00-00 00:00:00" ["catid"]=> string(2) "45" ["created"]=> string(19) "2018-07-17 07:17:49" ["created_by"]=> string(4) "1621" ["created_by_alias"]=> string(0) "" ["state"]=> string(1) "1" ["modified"]=> string(19) "2018-07-20 07:47:21" ["modified_by"]=> string(4) "1646" ["modified_by_name"]=> string(11) "Gino Galang" ["publish_up"]=> string(19) "2018-07-20 06:00:46" ["publish_down"]=> string(19) "0000-00-00 00:00:00" ["images"]=> string(267) "{"image_intro":"images\/intro-images\/839x487\/stress-free-840.jpg","float_intro":"","image_intro_alt":"Stories of success, migrants, Property Twins","image_intro_caption":"","image_fulltext":"","float_fulltext":"","image_fulltext_alt":"","image_fulltext_caption":""}" ["urls"]=> string(121) "{"urla":false,"urlatext":"","targeta":"","urlb":false,"urlbtext":"","targetb":"","urlc":false,"urlctext":"","targetc":""}" ["attribs"]=> string(1002) "{"article_layout":"","show_title":"","link_titles":"","show_tags":"","show_intro":"","info_block_position":"","info_block_show_title":"","show_category":"","link_category":"","show_parent_category":"","link_parent_category":"","show_associations":"","show_author":"","link_author":"","show_create_date":"","show_modify_date":"","show_publish_date":"","show_item_navigation":"","show_icons":"","show_print_icon":"","show_email_icon":"","show_vote":"","show_hits":"","show_noauth":"","urls_position":"","alternative_readmore":"","article_page_title":"","show_publishing_options":"","show_article_options":"","show_urls_images_backend":"","show_urls_images_frontend":"","canonical_link":"","transcript":"","clientName1":"","clientDesc1":"","clientImage1":"","clientUrl1":"","clientName2":"","clientDesc2":"","clientImage2":"","clientUrl2":"","clientName3":"","clientDesc3":"","clientImage3":"","clientUrl3":"","clientName4":"","clientDesc4":"","clientImage4":"","clientUrl4":"","author_promotion_line":""}" ["metadata"]=> string(53) "{"robots":"","author":"","rights":"","xreference":""}" ["metakey"]=> string(64) "stories, success, living, socioeconomic, sydney, property, twins" ["metadesc"]=> string(200) "Sana and Mona Ali moved to Australia from Pakistan at the age of 15. Years later, they sought to grow their $40,000 savings by investing in property. Before turning 30, the Property Twins have suc" ["access"]=> string(1) "1" ["hits"]=> string(2) "15" ["xreference"]=> string(0) "" ["featured"]=> string(1) "0" ["language"]=> string(1) "*" ["readmore"]=> string(4) "9784" ["ordering"]=> string(1) "2" ["category_title"]=> string(25) "Smart Property Investment" ["category_route"]=> string(25) "smart-property-investment" ["category_access"]=> string(1) "1" ["category_alias"]=> string(25) "smart-property-investment" ["published"]=> string(1) "1" ["parents_published"]=> string(1) "1" ["lft"]=> string(2) "47" ["author"]=> string(11) "Bianca Dabu" ["author_email"]=> string(32) "[email protected]" ["parent_title"]=> string(4) "ROOT" ["parent_id"]=> string(1) "1" ["parent_route"]=> string(0) "" ["parent_alias"]=> string(4) "root" ["rating"]=> string(1) "0" ["rating_count"]=> string(1) "0" ["alternative_readmore"]=> NULL ["layout"]=> NULL ["params"]=> object(Joomla\Registry\Registry)#1199 (3) { ["data":protected]=> object(stdClass)#1218 (95) { ["article_layout"]=> string(14) "spbase:article" ["show_title"]=> string(1) "1" ["link_titles"]=> string(1) "1" ["show_intro"]=> string(1) "1" ["info_block_position"]=> string(1) "0" ["info_block_show_title"]=> string(1) "1" ["show_category"]=> string(1) "1" ["link_category"]=> string(1) "0" ["show_parent_category"]=> string(1) "0" ["link_parent_category"]=> string(1) "0" ["show_associations"]=> string(1) "0" ["flags"]=> string(1) "1" ["show_author"]=> string(1) "1" ["link_author"]=> string(1) "0" ["show_create_date"]=> string(1) "1" ["show_modify_date"]=> string(1) "1" ["show_publish_date"]=> string(1) "1" ["show_item_navigation"]=> string(1) "0" ["show_vote"]=> string(1) "0" ["show_readmore"]=> string(1) "1" ["show_readmore_title"]=> string(1) "0" ["readmore_limit"]=> string(3) "100" ["show_tags"]=> string(1) "1" ["show_icons"]=> string(1) "0" ["show_print_icon"]=> string(1) "0" ["show_email_icon"]=> string(1) "1" ["show_hits"]=> string(1) "0" ["show_noauth"]=> string(1) "0" ["urls_position"]=> string(1) "0" ["captcha"]=> string(0) "" ["show_publishing_options"]=> string(1) "1" ["show_article_options"]=> string(1) "1" ["save_history"]=> string(1) "0" ["history_limit"]=> int(10) ["show_urls_images_frontend"]=> string(1) "0" ["show_urls_images_backend"]=> string(1) "1" ["targeta"]=> int(0) ["targetb"]=> int(0) ["targetc"]=> int(0) ["float_intro"]=> string(5) "right" ["float_fulltext"]=> string(5) "right" ["category_layout"]=> string(6) "_:blog" ["show_category_heading_title_text"]=> string(1) "0" ["show_category_title"]=> string(1) "0" ["show_description"]=> string(1) "0" ["show_description_image"]=> string(1) "0" ["maxLevel"]=> string(1) "0" ["show_empty_categories"]=> string(1) "0" ["show_no_articles"]=> string(1) "1" ["show_subcat_desc"]=> string(1) "0" ["show_cat_num_articles"]=> string(1) "0" ["show_cat_tags"]=> string(1) "0" ["show_base_description"]=> string(1) "1" ["maxLevelcat"]=> string(2) "-1" ["show_empty_categories_cat"]=> string(1) "0" ["show_subcat_desc_cat"]=> string(1) "1" ["show_cat_num_articles_cat"]=> string(1) "1" ["num_leading_articles"]=> string(2) "15" ["num_intro_articles"]=> string(1) "0" ["num_columns"]=> string(1) "0" ["num_links"]=> string(1) "0" ["multi_column_order"]=> string(1) "0" ["show_subcategory_content"]=> string(1) "0" ["show_pagination_limit"]=> string(1) "1" ["filter_field"]=> string(4) "hide" ["show_headings"]=> string(1) "1" ["list_show_date"]=> string(1) "0" ["date_format"]=> string(0) "" ["list_show_hits"]=> string(1) "0" ["list_show_author"]=> string(1) "0" ["list_show_votes"]=> string(1) "0" ["list_show_ratings"]=> string(1) "0" ["orderby_pri"]=> string(4) "none" ["orderby_sec"]=> string(5) "rdate" ["order_date"]=> string(9) "published" ["show_pagination"]=> string(1) "2" ["show_pagination_results"]=> string(1) "1" ["show_featured"]=> string(4) "show" ["show_feed_link"]=> string(1) "1" ["feed_summary"]=> string(1) "0" ["feed_show_readmore"]=> string(1) "0" ["sef_advanced"]=> int(0) ["sef_ids"]=> int(0) ["custom_fields_enable"]=> string(1) "1" ["show_page_heading"]=> string(1) "0" ["layout_type"]=> string(4) "blog" ["menu_text"]=> int(1) ["menu_show"]=> int(1) ["page_title"]=> string(53) "Finance Tips and Insights - Smart Property Investment" ["menu-meta_description"]=> string(91) "Financial tips for property investors, from mortgages to cash flow to saving for a deposit." ["secure"]=> int(0) ["page_description"]=> string(11) "sample desc" ["page_rights"]=> NULL ["robots"]=> NULL ["access-view"]=> bool(true) } ["initialized":protected]=> bool(true) ["separator"]=> string(1) "." } ["displayDate"]=> string(19) "2018-07-17 07:17:49" ["slug"]=> string(95) "18293:stories-of-success-from-living-in-low-socioeconomic-sydney-to-becoming-the-property-twins" ["catslug"]=> string(28) "45:smart-property-investment" ["link"]=> string(115) "/investor-stories-1/18293-stories-of-success-from-living-in-low-socioeconomic-sydney-to-becoming-the-property-twins" }
Stories of success: The migrants that became Australia’s renowned Property Twins
object(stdClass)#1202 (52) {
  ["id"]=>
  string(5) "18289"
  ["title"]=>
  string(46) "A property investment plan years in the making"
  ["alias"]=>
  string(46) "a-property-investment-plan-years-in-the-making"
  ["introtext"]=>
  string(334) "

Will Magee has had ambitions to enter into the Australian property market for quite some time, but it has been more than just finances holding him back.  Having been granted permanent residency just two weeks ago, Will is wasting no time and is now in the process of signing papers and finding his first investment property.

" ["fulltext"]=> string(2483) "

In this episode of the Smart Property Investment Show, Will joins host Phil Tarrant to share why he is purchasing his first property in partnership with his brother, discuss the complications that can arise from such a strategy, and unpack the ongoing plan for building a joint property portfolio with his brother.

Will will also share how they approached saving for their first property, why he is taking out the mortgage in his name exclusively, and share their savings plan for the year ahead.

If you like this episode, show your support by rating us or leaving a review on iTunes (The Smart Property Investment Show) and by following Smart Property Investment on social media: FacebookTwitter and LinkedIn.

If you have any questions about what you heard today, any topics of interest you have in mind, or if you’d like to lend your voice to the show, email [email protected] for more insights!

RELATED AREAS OF INTEREST:

From property in Australia to a ski lodge in Japan
Mortgage Trusts, an alternative first step for property investors
Should a real estate title be in one person’s name only?

" ["checked_out"]=> string(1) "0" ["checked_out_time"]=> string(19) "0000-00-00 00:00:00" ["catid"]=> string(2) "45" ["created"]=> string(19) "2018-07-16 07:05:42" ["created_by"]=> string(4) "1689" ["created_by_alias"]=> string(0) "" ["state"]=> string(1) "1" ["modified"]=> string(19) "2018-07-17 06:44:57" ["modified_by"]=> string(4) "1689" ["modified_by_name"]=> string(12) "Todd Stevens" ["publish_up"]=> string(19) "2018-07-16 07:07:04" ["publish_down"]=> string(19) "0000-00-00 00:00:00" ["images"]=> string(227) "{"image_intro":"images\/podcasts\/Will-Magee-sized-image.jpg","float_intro":"","image_intro_alt":"Will Magee","image_intro_caption":"","image_fulltext":"","float_fulltext":"","image_fulltext_alt":"","image_fulltext_caption":""}" ["urls"]=> string(121) "{"urla":false,"urlatext":"","targeta":"","urlb":false,"urlbtext":"","targetb":"","urlc":false,"urlctext":"","targetc":""}" ["attribs"]=> string(1002) "{"article_layout":"","show_title":"","link_titles":"","show_tags":"","show_intro":"","info_block_position":"","info_block_show_title":"","show_category":"","link_category":"","show_parent_category":"","link_parent_category":"","show_associations":"","show_author":"","link_author":"","show_create_date":"","show_modify_date":"","show_publish_date":"","show_item_navigation":"","show_icons":"","show_print_icon":"","show_email_icon":"","show_vote":"","show_hits":"","show_noauth":"","urls_position":"","alternative_readmore":"","article_page_title":"","show_publishing_options":"","show_article_options":"","show_urls_images_backend":"","show_urls_images_frontend":"","canonical_link":"","transcript":"","clientName1":"","clientDesc1":"","clientImage1":"","clientUrl1":"","clientName2":"","clientDesc2":"","clientImage2":"","clientUrl2":"","clientName3":"","clientDesc3":"","clientImage3":"","clientUrl3":"","clientName4":"","clientDesc4":"","clientImage4":"","clientUrl4":"","author_promotion_line":""}" ["metadata"]=> string(53) "{"robots":"","author":"","rights":"","xreference":""}" ["metakey"]=> string(41) "property, investment, plan, years, making" ["metadesc"]=> string(200) "Will Magee has had ambitions to enter into the Australian property market for quite some time, but it has been more than just finances holding him back.   Having been granted permanent residency jus" ["access"]=> string(1) "1" ["hits"]=> string(2) "91" ["xreference"]=> string(0) "" ["featured"]=> string(1) "0" ["language"]=> string(1) "*" ["readmore"]=> string(4) "2483" ["ordering"]=> string(1) "3" ["category_title"]=> string(25) "Smart Property Investment" ["category_route"]=> string(25) "smart-property-investment" ["category_access"]=> string(1) "1" ["category_alias"]=> string(25) "smart-property-investment" ["published"]=> string(1) "1" ["parents_published"]=> string(1) "1" ["lft"]=> string(2) "47" ["author"]=> string(12) "Todd Stevens" ["author_email"]=> string(33) "[email protected]" ["parent_title"]=> string(4) "ROOT" ["parent_id"]=> string(1) "1" ["parent_route"]=> string(0) "" ["parent_alias"]=> string(4) "root" ["rating"]=> string(1) "0" ["rating_count"]=> string(1) "0" ["alternative_readmore"]=> NULL ["layout"]=> NULL ["params"]=> object(Joomla\Registry\Registry)#1203 (3) { ["data":protected]=> object(stdClass)#1239 (95) { ["article_layout"]=> string(14) "spbase:article" ["show_title"]=> string(1) "1" ["link_titles"]=> string(1) "1" ["show_intro"]=> string(1) "1" ["info_block_position"]=> string(1) "0" ["info_block_show_title"]=> string(1) "1" ["show_category"]=> string(1) "1" ["link_category"]=> string(1) "0" ["show_parent_category"]=> string(1) "0" ["link_parent_category"]=> string(1) "0" ["show_associations"]=> string(1) "0" ["flags"]=> string(1) "1" ["show_author"]=> string(1) "1" ["link_author"]=> string(1) "0" ["show_create_date"]=> string(1) "1" ["show_modify_date"]=> string(1) "1" ["show_publish_date"]=> string(1) "1" ["show_item_navigation"]=> string(1) "0" ["show_vote"]=> string(1) "0" ["show_readmore"]=> string(1) "1" ["show_readmore_title"]=> string(1) "0" ["readmore_limit"]=> string(3) "100" ["show_tags"]=> string(1) "1" ["show_icons"]=> string(1) "0" ["show_print_icon"]=> string(1) "0" ["show_email_icon"]=> string(1) "1" ["show_hits"]=> string(1) "0" ["show_noauth"]=> string(1) "0" ["urls_position"]=> string(1) "0" ["captcha"]=> string(0) "" ["show_publishing_options"]=> string(1) "1" ["show_article_options"]=> string(1) "1" ["save_history"]=> string(1) "0" ["history_limit"]=> int(10) ["show_urls_images_frontend"]=> string(1) "0" ["show_urls_images_backend"]=> string(1) "1" ["targeta"]=> int(0) ["targetb"]=> int(0) ["targetc"]=> int(0) ["float_intro"]=> string(5) "right" ["float_fulltext"]=> string(5) "right" ["category_layout"]=> string(6) "_:blog" ["show_category_heading_title_text"]=> string(1) "0" ["show_category_title"]=> string(1) "0" ["show_description"]=> string(1) "0" ["show_description_image"]=> string(1) "0" ["maxLevel"]=> string(1) "0" ["show_empty_categories"]=> string(1) "0" ["show_no_articles"]=> string(1) "1" ["show_subcat_desc"]=> string(1) "0" ["show_cat_num_articles"]=> string(1) "0" ["show_cat_tags"]=> string(1) "0" ["show_base_description"]=> string(1) "1" ["maxLevelcat"]=> string(2) "-1" ["show_empty_categories_cat"]=> string(1) "0" ["show_subcat_desc_cat"]=> string(1) "1" ["show_cat_num_articles_cat"]=> string(1) "1" ["num_leading_articles"]=> string(2) "15" ["num_intro_articles"]=> string(1) "0" ["num_columns"]=> string(1) "0" ["num_links"]=> string(1) "0" ["multi_column_order"]=> string(1) "0" ["show_subcategory_content"]=> string(1) "0" ["show_pagination_limit"]=> string(1) "1" ["filter_field"]=> string(4) "hide" ["show_headings"]=> string(1) "1" ["list_show_date"]=> string(1) "0" ["date_format"]=> string(0) "" ["list_show_hits"]=> string(1) "0" ["list_show_author"]=> string(1) "0" ["list_show_votes"]=> string(1) "0" ["list_show_ratings"]=> string(1) "0" ["orderby_pri"]=> string(4) "none" ["orderby_sec"]=> string(5) "rdate" ["order_date"]=> string(9) "published" ["show_pagination"]=> string(1) "2" ["show_pagination_results"]=> string(1) "1" ["show_featured"]=> string(4) "show" ["show_feed_link"]=> string(1) "1" ["feed_summary"]=> string(1) "0" ["feed_show_readmore"]=> string(1) "0" ["sef_advanced"]=> int(0) ["sef_ids"]=> int(0) ["custom_fields_enable"]=> string(1) "1" ["show_page_heading"]=> string(1) "0" ["layout_type"]=> string(4) "blog" ["menu_text"]=> int(1) ["menu_show"]=> int(1) ["page_title"]=> string(53) "Finance Tips and Insights - Smart Property Investment" ["menu-meta_description"]=> string(91) "Financial tips for property investors, from mortgages to cash flow to saving for a deposit." ["secure"]=> int(0) ["page_description"]=> string(11) "sample desc" ["page_rights"]=> NULL ["robots"]=> NULL ["access-view"]=> bool(true) } ["initialized":protected]=> bool(true) ["separator"]=> string(1) "." } ["displayDate"]=> string(19) "2018-07-16 07:05:42" ["slug"]=> string(52) "18289:a-property-investment-plan-years-in-the-making" ["catslug"]=> string(28) "45:smart-property-investment" ["link"]=> string(72) "/investor-stories-1/18289-a-property-investment-plan-years-in-the-making" }
A property investment plan years in the making

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
What is the right balance of loan-to-value ratio?
SPI logo