Case Study – Nurse – The Fourtress Group

Summary

Profile & Summary

A 35-year-old nurse with one young child was determined to invest her £220,000 inheritance wisely. She didn’t need an income immediately from her investments and was looking for longer-term growth. Fourtress Group was recommended to her by a family friend.

Initial Financial Plan

The plan was to invest the majority of her inheritance in a tax efficient way by creating a property portfolio. Our client wanted her investments to have strong capital growth along with the potential to create a future income so she could retire at 55 years old.

Initial Financial Picture

Our client and her husband own their own home together with a mortgage
She is a part-time nurse. Her husband works full time
£15,000 savings, with both enrolled on workplace pensions
Anticipated retirement in 25 – 30 years

Investment

£200k

Investment Goal

£20,000 Passive Income

Timeframe

20 years

Challenges

Trust

Our client has never had this amount of money in her bank account and therefore she wasn’t prepared to give control of it to anyone who she didn’t trust 100%.

Time

As a nurse, wife and mother, it was important to our client that she could fully focus on her family and work. Understanding that property investment is time-consuming, she decided to consult Fourtress Group.

Finance Strategy

Our client cwas unsure when buying whether to use finance or just make cash purchases. She realised she had little knowledge in what was most tax efficient way to build a property portfolio.

Duty

Our client wanted to create a legacy when she was left money by a family member. It was very important to our client that the money would be used in the best way possible to provide a better financial future for her family.

Solutions

Fourtress Group Strategy...

After our initial consultation, we advised our client initially add £20,000 to her savings. We then provided three different strategies to help her achieve her financial goals. Our client was averse to debt, therefore we carefully structured a plan to ensure her portfolio would be unencumbered in 15-20 years time.

What the Fourtress Group did...

Once the plan was designed, Fourtress Group implemented the initial steps. We sourced, negotiated and renovated four properties for our client over a six-month period using our network of professionals. All four properties had tenants ready to move in once renovations had taken place. As Fourtress Group is responsible for the management of these properties, the process was seamless. The key part of the plan was for the portfolio to have zero debt in the future, of which Fourtress Group will also see through to fruition.

Future

The Result

We started work with our client three years ago. If she was to sell her portfolio today, she would walk away with a phenomenal amount of £290,000 – a pre-tax profit of £90,000.

Our client has a property portfolio worth in excess of £680,000. She has four properties which have been fully tenanted with no voids. The current gross monthly rental income received is £3200 and this is being used to pay down the borrowings on the portfolio.

Fourtress Group fully expects this portfolio to be worth around £1M in 17 years time with no debt and an annual income of £40,000+.

Property No.

Portfolio Value

680k

Restrospective

This was a tried, trusted and effective strategy with some very specific targets for our client. Fourtress Group sourced great value properties in excellent areas.

Results so far have been excellent with strong capital growth, consistent rental income and a low turnover of tenants.

“It’s been an absolute pleasure and a privilege to be trusted by our client and her family. Whilst supporting them in such an important decision they have been overwhelmed by the initial results. We’re looking forward to helping them achieve their longer-term vision.”

Gary Preston - Fourtress Group