Client Profile
Dr. Nguyen, 34, an anaesthetist earning $360,000 annually through both hospital PAYG work and private billings via her medical company. She and her husband had purchased their family home 3 years ago but were now considering upgrading to a larger home while keeping their existing property as an investment.
The Challenge
Dr. Nguyen wanted to upgrade to a $2.1 million home but wasn’t sure if they could afford it while retaining their current home. Their existing mortgage had not been reviewed in years, and her private income structure was being misrepresented by lenders, reducing their borrowing power. They were also unsure of the best structure for future tax efficiency and wealth building.
Our Strategy
- Revalued current home and refinanced to release $420,000 in equity
- Structured the new purchase with 20% deposit plus stamp duty using equity from the existing property
- Presented both her PAYG income and company earnings properly to maximise borrowing capacity
- Set up the new home loan in joint names with offset accounts, and converted the old home loan to interest-only under investment purpose
The Result
- Approved for $1.68 million for the new purchase while retaining the existing property
- Secured both loans on sharp rates with the right lender policies around company income
- Existing home now generating rental income and tax deductions
- Offset structure in place to reduce interest and maintain cash flow flexibility
Conclusion
Dr. Nguyen successfully upgraded to her dream home while turning her old home into a tax-effective investment. By planning ahead with the right structure and strategy, she’s now positioned to grow her portfolio with greater tax efficiency and long-term control.
