Client Profile
Dr. Patel, 39, a private cardiologist earning $420,000 annually through a mix of PAYG and company distributions. He owned his home outright and was looking to start building a property investment portfolio for long-term wealth and asset protection.
The Challenge
Dr. Patel wanted to purchase two investment properties totalling $2.4 million while minimising personal risk and protecting future rental income from tax erosion. His accountant had recommended purchasing in a family trust, but he was told by another broker this structure would limit his borrowing capacity and require personal guarantees that he was uncomfortable with.
Our Strategy
- Structured the loans through two separate discretionary trusts with corporate trustees to ensure flexibility and asset protection
- Used equity from his unencumbered home for the 20% deposits and purchase costs, without cross-collateralising
- Chose a lender that accepted trust ownership with no personal income shading and did not require Dr. Patel to be a co-borrower, only a guarantor
- Worked closely with his accountant and solicitor to align loan setup with his long-term tax strategy and investment plan
The Result
- Approved for two trust-held investment loans totalling $1.92 million
- Structured to keep personal and trust liabilities separate
- Interest-only loans with offset accounts for future flexibility
- Preserved borrowing power for future investments or SMSF lending
Conclusion
Dr. Patel turned dormant home equity into a strategic investment vehicle with minimal personal risk. With the right structures, team collaboration,
