Peter and Beth's current situation before Smart Money:

Income
Peter Income $90,000 per year
Beth Income $50,000 per year Total income per month (after tax) $8,525

Assets
Family Home Valued at $600,000
Motor Vehicle Valued at $50,000
Motor Vehicle Valued at $30,000
Superannuation Valued at $200,000 with John's employer paying in $8,100 per year and Fiona's employer paying in $4,500 per year.

Liabilities
Credit Card $10,000 at 18%. Paid off each month
Living Expenses $4,000 per month
Total spending each month is $4,000

What Smart Money did for Peter and Beth

Peter and Beth had decided that they wanted to invest in real estate as they had done well with their home and felt comfortable with the real estate market.

With their Smart Money Report we showed them several different ways to buy real estate. One way was to buy an established house that could be rented immediately and the other was to purchase a house and land package where the house would take around 15 months to be completed.

Peter and Beth decided to purchase their first investment property as a house and land package (valued at $375,000) through Smart Money. The main reason was that they saved around $7,600 in stamp duty as they only had to pay purchase stamp duty on the land component plus the property was valued under the current sales value for similar properties in the same area so they knew that they had already made a profit when they purchased.

Through their Smart Money Report we also showed Peter and Beth how they could purchase a second investment property in the following year and how that would affect their net wealth at retirement. In 10 years time Peter and Beth have the option of holding on to all their properties or selling one or both of the investment properties to pay off their liabilities.

A Smart Money Wealth Coach also showed Peter and Beth how to use their cashflow more effectively to minimise the interest they were paying on their investment loan as well as assisted them with monitoring their Smart Money System on a monthly basis.

Peter and Beth's new situation after Smart Money:

Income
Peter Income $90,000 per year
Beth Income $50,000 per year
Rental Income $31,200 per year
Total income per month (after tax) $11,250

Assets
Family Home Valued at $600,000
Motor Vehicle Valued at $50,000
Motor Vehicle Valued at $30,000
Superannuation Valued at $200,000 with John's employer paying in $8,100 per year and Fiona's employer paying in $4,500 per year.
Investment Property Purchased at $375,000 (in year 1)
Investment Property Purchased at $375,000 (in year 2)

Liabilities
Credit Card $10,000 at 18%. Paid off each month

Investment Loan $786,000 at 7.15%. Interest only repayments at $4,683.25 per month
(During construction interest only is paid on drawn amount only not the total loan amount. This repayment figure is based on the loan being fully drawn).

Living Expenses $4,000 per month

Investment Properties $700 per month (expenses)

Total spending each month is $9,383.25

	Current Situation Before Smart Money	Situation After Smart Money
After Tax Income	$8,525 per month	$11,250 per month
Value of Loans	$0	$786,000
Loan Repayments	$0 per month	$4,683.25 per month
Living Expenses	$4,000 per month	$4,700 per month
Years to Pay Off Home Loan	0 years	10 years
Interest Paid in Load Term	$0	$333,243
Net Wealth* After 5 Years	$1,165,650	$1,509,481
Net Wealth* After 10 Years	$1,533,516	$2,214,721

* Net Wealth - assets minus liabilities

There are no upfront costs for the Smart Money Report. All Smart Money Fees, bank and government charges have been included in the above scenario and have come out of the savings Smart Money has identified.

Smart Money Step 1: Gain back the money you're losing in hidden interest

By working with Smart Money we have been able to show Peter and Beth how to save on the hidden interest they would be paying on their investment loans. These savings can help them to pay off the loan more quickly.

Smart Money Step 2: Invest the interest you save to create real wealth

In 10 years time when they are ready to retire Smart Money has shown Peter and Beth how they can:

Smart Money showed Peter and Beth how easily they can invest in the real estate market and use it to their advantage to increase their net wealth for retirement. Also in a few years time if Peter and Beth want to purchase additional investment properties to further increase their net wealth at retirement Smart Money can do a review of their Report to see what the outcomes would be. Peter and Beth can then make a decision whether to purchase more properties or not.