Allan is a single with no dependent 38-year-old sophisticated and 'aggressive' risk rated investor with an extended
Question:
Allan is a single with no dependent 38-year-old sophisticated and 'aggressive' risk rated investor with an extended portfolio of shares, bonds, and real estate properties. He has been self-employed for 13 years with a consistent income and have a great credit history. He has used your services many times in the past.
He is keen on adding a second real estate property on his investment portfolio. The unit is advertised for $300,000 and is located in North Brighton - 5048 - Adelaide.
He wants to avoid LMI, have access to an offset account, and thinks about cross collateralising his two investment properties. He asked you, his mortgage broker, to evaluate this option but also to come up with other structures that could benefit his situation.
Allan is not in a position to provide a lender with tax returns or financials, but his accountant is happy to support the numbers provided to ascertain Allan's financial situation.
After review you are confident that servicing will not be an issue.
Allan's real estate Assets & Liabilities are:
Owner Occupied Home valued $890,000 - mortgage of $250,000 - P&I repayments - Variable Interest Rate Existing investment property valued $600,000 - mortgage of $370,000 - P&I repayments - Variable Interest Rate
Based on the supporting documentation and the information you hold, complete the activities below.
This activity will assess your ability to determine special financial needs and risk profile for clients.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill