Case Study – Sell or Stay Put?

I recently received an enquiry from a couple who were interested in conducting a review of their finances. They were very aware of their current situation but wanted to see what the financial future would look like in two different scenarios. They have a rental property and a home property, both with active mortgages.

Their aim was to see what the future would look like financially if they

1.    Kept the rental property, continue to use the rent to pay the mortgage and eventually have the rental income as a profit in later years

or

2.    To sell the rental property and use the proceeds to clear both mortgages.

The couple inputted their incoming and outgoing funds through our secure online financial planning portal, along with their savings / assets / liabilities and their objectives. As part of their objectives, they had also hoped to factor in starting a pension plan and to continue regular savings.

There were pros and cons to both keeping and selling the rental property but, I was able to show the various outcomes using the graphs in our planning system to show how life would look financially up to retirement age and into later years, depending on which choice they made.

In their feedback, they said that being able to see this information and to see its impact it would have on their lives, helped them to make the correct decision for now and into the future. They can also fulfil the additional objectives that they originally listed and know that they will be financially secure.

Since I first began providing this financial planning service, I have seen that no two people’s situation is identical. The system and the process can be used for many different purposes and outcomes but at the end of the day, it is providing people with peace of mind and confidence in their decisions.

There is a once-off fee and a simple three step process to get started, should you wish to carry out a financial review. Following this, you decide what step to take next. This process will, at the very least, be an education to anybody who has no short or long-term financial strategy for retirement or savings needs.