Sydney teacher Monica Rouvellas shares how she bought three homes on a $70k wage

·

Despite earning “too little” to secure a loan, Sydney music teacher Monica Rouvellas successfully navigated several banking obstacles to acquire three homes valued at $1.2 million.

With an income of $70,000 a year on top of the fact she was self-employed, the banks assessed her ability to pay the loan at only 60 per cent of that income, leaving her with minimal money to take out.

However, Rouvellas told realestate.com.au that she resolved this obstacle through a special purpose vehicle. It is essentially a company she set up for her property deals and it has meant the banks assessed her risk differently and were able to lend her more than she would have got applying for loans personally.

She has also joined forces with her brother. Together they went 50/50 on the loan and upfront costs, buying their first unit for $350,000 with a 10 per cent deposit.

Since acquiring two more homes, she has managed her finances so effectively that her total debt on these properties stands at approximately $500,000, leaving her with approximately $700,000 in equity.

Monica Rouvellas’ first home buy on NSW’s south coast. Photo: realestate.com.au.

Remarkably, the rental income from these properties nearly covers her mortgage payments, reducing her out-of-pocket expenses to a minimum.

“One thing I learnt is that banks treat you differently if you take out lending products as a business,” Rouvellas told realestate.com.au.

“The banks’ risk appetite is different. You have the backing of the Corporations Act so the banks have more alternatives if things don’t go well. You also get more asset protection benefits and there’s more ways to minimise your tax.”

Stressing the importance of buying in the right place at the right time, Rouvellas added: “I do a lot of research to look at which areas are going to grow and where the rents will be high.”

“My advice for anyone (investing) is to get advice on structuring your loans. It makes all the difference,” she added.

Source: Realestate.

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

‘Una Faccia, Una Razza’: The politics of memory and the power of saying ‘OXI’

The annual homage to “OHI” Day stems from Greece's Prime Minister Metaxas firmly stating “OHI” (NO) to Mussolini's request.

The Master Miller and the art of olive oil perfection

The Master Miller’s mission has its roots in a philosophy that begins at the olive tree and reaches the heart of those who seek quality.

Brain regain: For the first time in 14 years, more people return to Greece than leave

For the first time in over a decade, Greece is witnessing a positive migration balance as more Greeks return home than emigrate.

When everyday Greeks said OXI: Resistance and survival during World War Two

“Aera!” (Air!) roared Greek soldiers as they clawed over jagged rocks on the brutal Pindus Mountains during Italy’s 1940 invasion.

Botanical Park of Crete: Rooted in fire, inspiring hope

The October 2003 fire started with electrical cables in a village near the Marinakis family’s olive groves.

You May Also Like

Greek government progresses same-sex marriage bill, Church of Greece reacts 

The Greek government intends to accelerate legislation that would legalise same-sex marriage, prompting Church of Greece's emergency meeting.

Australians of Greek heritage named on the NSW rich list

38 percent of the richest people live in NSW, and Greek Australians: Nick Politis, Theo Karedis and Nicholas Paspaley are among them.

Greece comes from behind to win 2-1 against Finland in UEFA European qualifier

Two second-half goals by Petros Mantalos and Kostas Galanopoulos saw Greece come from behind and beat Finland 2-1 in Athens as it completed its...