Case studies
Most Australians are stressed when they think about their finances and the rising cost of living...
At Regatta, we empower you to take back control of your finances through better money management, debt reduction strategies and superior investment options, so that you can escape financial stress and improve your quality of life.
We’ve shown thousands of Australians how to easily increase their wealth without years of hard work and trial and error, and we can do the same for you too. Here is what some clients have experienced while working with us.
Meet Sarah from Central Coast
Sarah is a hardworking professional who had been struggling under the weight of her financial burdens. She approached Regatta with a mounting pile of debts and lack of available cash. Sarah was feeling like she was going backward, with a hefty mortgage of $580,000 and several smaller debts totalling $25,000. She was desperate for a solution to not only regain control over her finances but also to secure a brighter future for herself and her family.
At her initial consultation with Regatta, Sarah was understandably overwhelmed and uncertain about how to tackle her financial challenges. She explained her goals of wanting to provide her children with a private education, as well as building a secure retirement nest egg. We understood her aspirations and were determined to help her achieve them.
The first step was to refinance her mortgage. By negotiating more favourable terms and conditions, Regatta managed to significantly reduce her monthly mortgage payments, allowing her to free up cash for her immediate financial needs. We also consolidated her smaller debts, streamlining her monthly obligations.
Simultaneously, Regatta provided Sarah with practical guidance on optimizing her cashflow. She learned how to budget effectively, cut unnecessary expenses, and build a savings plan. With discipline and Regatta’s continuous support, she saw an increase in her available cash over time.
As a result of our collaborative efforts, Sarah’s financial picture began to transform. Her debt burden decreased, and her cashflow improved, enabling her to afford private schooling for her children. Additionally, she was able to allocate more of her income towards boosting her retirement savings, thus enhancing her net worth and securing her financial future.
Sarah’s success story is a testament to the power of effective debt management and cashflow optimization, with Regatta by her side. By taking proactive steps to regain control of her finances, she not only eased her immediate financial stress but also made her long-term dreams a reality. At Regatta, we’re committed to helping clients like Sarah chart a course toward a more prosperous and secure future.
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Graham's financial journey
Graham is a hardworking, 50 year old professional who sought financial advice to optimize his wealth management to achieve a better retirement as he felt he was not on track. He had a superannuation account, an outstanding mortgage on his principal residence, and the recommendation was to invest in an additional property while also contributing to a managed fund.
Current Net Worth (Excluding Principal Home Equity):
Current Net Worth (Excluding Principal Home Equity) = -350,000 (Loan) plus $220,000 Superannuation balance = Minus $130,000
Net Worth After 10 Years (Excluding Principal Home Value and Equity):
After 10 years, Graham’s net worth, excluding the principal home value and equity, is determined as follows:
Superannuation Balance After 10 Years: (7%) = $374,287.86
Remaining Mortgage Balance in 10 Years: (4%) = $481,968.47
Investment Property Equity After 10 Years: (5%) = $768,425.94
Managed Fund: (7%) = $179,577.67
Net Worth After 10 Years (Excluding Principal Home Value and Equity) = Superannuation Balance After 10 Years + Investment Property Equity After 10 Years
Net Worth After 10 Years (Excluding Principal Home Value and Equity) = $374,287.86 + $768,425.94 + $179,577.67 (Managed Fund) = $1,322,291.40
In 10 years, considering Graham’s superannuation, investment property, and managed fund investments while excluding the principal home value and equity, his adjusted net worth is approximately $1,322,291 which allows a retirement that otherwise looked very distant.
Karla's 10-year investment plan
Karla is a 35 year old with a primary residence valued at $500,000, a mortgage of $350,000 and a superannuation balance of $150,000. Karla didn’t have any other significant investments when she engaged Regatta Financial. Our recommendations included using equity from her primary residence to finance the purchase of $425,000 including purchase costs.
Year 1 to Year 5:
- Mortgage Payment (Primary Residence): Karla’s monthly mortgage payment for the primary residence is approximately $2,396 (assuming a 30-year term with an interest rate of 6%). Over the first five years, she will pay a total of approximately $43,120 in mortgage payments.
- Rental Income: Karla rents out the investment property for $2,000 per month. This results in an annual rental income of $24,000. Over five years, she earns $120,000 in rental income.
- Property Appreciation: Assuming a 4% annual property appreciation rate, the investment property’s value will increase over five years. So, the property’s value will grow to approximately $464,991.
- Mortgage Balance (Investment Property): Karla’s mortgage balance on the investment property decreases with her monthly payments. After five years, she will have reduced the balance by approximately $37,426.
Year 6 to Year 10:
- Mortgage Paydown (Primary Residence): Over the next five years, Karla continues to make mortgage payments on her primary residence, reducing the loan balance. By Year 10, she will have paid off approximately $50,000 of the principal.
- Rental Income: The rental income from the investment property continues at $24,000 per year, resulting in an additional $120,000 of income over five years.
- Property Appreciation: Assuming the same 4% annual property appreciation, the investment property’s value increases to approximately $542,759.
- Mortgage Balance (Investment Property): After ten years, Karla’s mortgage balance on the investment property will be further reduced to approximately $388,574.
Superannuation (Super) Account:
- Karla’s superannuation account grows at an annual rate of 7%. So, at the end of 10 years, her superannuation account is estimated to be approximately $235,827.
Net Worth Calculation:
Beginning Net Worth (Year 1):
- Debt (Mortgage on Primary Residence): -$300,000
- Debt (Mortgage on Investment Property): -$425,000
- Total Debt: -$725,000
- Superannuation Account: $150,000
- Investment Property Equity (Value – Mortgage): $0 (Initial)
- Total Net Worth: -$575,000
End of 10-Year Net Worth (Year 10):
- Debt (Mortgage on Primary Residence): $0
- Debt (Mortgage on Investment Property): -$388,574
- Total Debt: -$388,574
- Superannuation Account: $235,827
- Investment Property Equity (Value – Mortgage): $154,185 (Value – Mortgage)
- Total Net Worth: $1,001
*Stock image used to protect privacy
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