How a portfolio can survive a
Investors are being advised that a strong portfolio
management can help both investors get ahead if their relationship falls apart.
During a recent episode of The Smart Property
Investment Show, property investor JimHallexplained how he didn’t
let a relationship breakdown ruin his portfolio.
"Back in 2016, I had a portfolio, which was
probably worth about $5 million. And I went through a separation. I wasn’t
actually married but been with my partner, long-time partner, and mother of my
two children, for sort of 10-12 years,” Mr. Hall said.
Mr. Hall explained he was lucky enough to create a
win-win situation with his now ex-partner through their accountant.
"We came to an agreement just using[our
accountant]Munzurul as a mediator that would be sort of fair and
reasonable. And how that worked out to be was, we sold a little bit of
"My partner didn’t have sort of the cash flow that
I’m fortunate to have. So, in the end, I ended up keeping a relatively decent
part of the portfolio,” Mr. Hall explained.
He pointed out that he was able to give his partner
a property without debt, while he could refinance to keep the majority of the
"So, I’ve increased my debt a little bit. But I
managed to keep a reasonable chunk of the portfolio. So, all in all, both
happy. I haven’t had to start from scratch,” he explained.
Mr. Hall noted that despite the separation, today
the portfolio still contains nine properties with a loan-to-valuation ratio of
around 70 percent.
However, he pointed to the structure of his
portfolio allowing him to set and forget about it while focusing on other
aspects in life.
"But that’s OK. And this goes back to building a
portfolio which is resilient to time or change. And that you didn’t do anything
with it for a couple of years probably helped it, you know? Like, it wasn’t a
shit portfolio beforehand. So, therefore, because you fell out of love with
your property portfolio, it didn’t necessarily do you wrong as a result of it,”
host Phil Tarrant summarised.
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Thursday, 8 October 2020