Keeping it Real | Post by Luke Styles

I want share a recent experience that I had with a new client.

I had the opportunity to reach out to a mid-40’s couple living on what most people would regard as below average income. They don’t spend a lot, but they definitely don’t have a lot left over either. As a Financial Planner, I often get a thrill by being inquisitive and asking the hard questions. I want to understand what my clients want rather than prescribe what my industry thinks they want.

Having uncovered that my new client had recently been offered the opportunity to purchase the property that they have rented from their landlord for 10 years, I was able to work through the numbers, forming a picture and road map of ownership. With the right structure and motivation I’m confident that they can pull the purchase off. The look of joy and relief from a couple in their 40s with 3 kids, at knowing it might be possible to purchase their first home, was a great experience, reminding me of what I do and why I do it.

People might be thinking that they’re a bit late jumping into the property market in their 40s, but coupled with the fact that they are looking to purchase a modest home, spending 1/3rd of the average Australian house price and having ample available cashflow following the purchase (the difference between current rent and future mortgage repayment) I’d be willing to bet they’ll be debt free before most mortgaged Australians.

Another important reminder for me in this scenario was client’s hesitation to approach me for advice was largely based on their perceived fear of not having enough. WHAT DOES ENOUGH EVEN MEAN!! Having a second professional opinion is going to allow our new client to achieve something that they never thought was impossible.

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