12. Rural Residential Property Purchase

Applicant is a professional photographer currently doing limited work due to COVID and wants to purchase a new rural home following loss during recent past bushfires. Insurance did pay-out on prior fire loss.

Key issues are limited income in recent times and wife is on a disability program. Key positive is that the applicant has 60% of purchase price from Insurance payout from his home that was burned down. While there was little financial information available due to last 18 months of COVID, bank statements indicated significant income and $1.2mil in account.

The purchase property (and security) is Rural Residential in the Adelaide Hills. Our formal valuation came in at $1.7mil as per purchase contract (LVR at 43%).

The exit strategy is to be refinance to a Bank once business trading has been consolidated as COVID-19 restrictions ease.

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