Pippa, our Lead Investment Services Manager, helped Stephen see the bigger picture.

Stephen*, a client, was on the verge of making a hasty decision regarding his investment property. Rising interest rates had him feeling the pinch financially, leading him to consider selling the property. Overcome by emotion rather than logic, Stephen viewed the property more as a burden, rather than an asset.  

Pippa Rose, our Lead Investment Services Manager, talked through the client’s concerns about selling a tenanted property and its overall condition. Before making any rash decisions, Pippa delved deeper into Stephen’s original goals for the property – wealth creation and retirement planning. This conversation helped Stephen remember his long-term vision. They then examined the property’s performance, highlighting its impressive $300,000 capital gain since purchase and its continued potential for growth, even if at a slightly slower pace. 

A conversation can go a long way.

An appraisal revealed an opportunity to increase the weekly rent by $40. This increase, if implemented, could significantly improve the property’s cash flow and offset some of the pressure created by rising interest rates. With this new information, Pippa encouraged Stephen to explore additional options. She suggested he negotiate a better interest rate with his bank and consider any personal cost-saving measures to further improve cash flow. By focusing on concrete facts and figures, Stephen gained a more objective perspective on his investment and his concerns about keeping the property began to lift.   

Finding solutions.

With the help of Pippa, Stephen recognised the property’s long-term value and decided to keep it. He implemented the recommended rent increase and offered his tenants a new 12-month lease. Stephen himself acknowledged the potential for regret if he had impulsively sold the property. 

“Your advice made me look at my investment property objectively instead of putting it in the too hard basket by understanding the bigger picture. We will take your advice on the $40 per week rent increase and offer the tenants another 12 month lease. Thank you for preventing me from making a big mistake, I think I would have had sellers remorse in a few years’ time if it weren’t for your advice,” said Stephen.  

By focusing on the objective data presented by Pippa, Stephen could see beyond the short-term impact of interest rates and recognise the property’s strong performance. Even with financial contributions to the property due to high interest rates, it remained a valuable asset worth holding onto.  

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Need property advice?

To talk through options or other ways you can optimise your investment property, get in touch with Pippa and the Investment Services team today.

Disclaimer: This information is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your situation, and for professional advice, seek out a financial adviser.