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Why would you work the hard way to pay off your home when there
are easier way's to do it?
I receive so many emails from clients asking me
how is this possible?.
You see most people in Australia paying off their home are making extra
payments to get the home loan down as fast as possible, and in the
process they restrict themselves and family to the pleasures in
life, which is
the right thing to do if you want to pay off your home, however…you do have options to get
your money working smarter for you.
Let's say you took (for this example) $100 a week and put
it into holding an investment property.
What we are doing is leveraging, yes you need to start
working smart and not hard, remember that.
You purchase an Investment property. Now if we look at the
history of property, it has doubled over years, right?
And we also know that with inflation, capital
growth and rental will also go up, but the loan will always stay
the same amount.
Right?
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With this method you need to make sure you're purchasing
in a good capital growth area, or an area with potential for
greater capital growth.
This is 1 of the 30 criteria's we use
when recommending an Investment Property to our clients.
(I can refer you to some ideal investments that have great
potential for capital growth, when your in a position to invest).
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Secret Revealed At Last
You pay your normal repayments on your home and hold the
Investment Property until it has doubled in value and then sell it
to pay your home off - there you go!
You see we can only work so hard and we are
only going to get a certain amount of pay per hour, but with
an Investment Property we can leverage ourselves.
Your investment might be worth $300,000. If it experiences
capital growth of only 5% there is $15,000 profit and it might
only have cost you $5,000 for the year to hold it.
What would you say if the bank or your Superfund announced that,
what ever you put into your account this year we will pay you the
double figure?
You
would be screaming " Where
do I put my money, right?"
Well tell me what happens if you experience a great year of capital growth and
you make 20% capital gain? That's an extra $60,000!
You couldn't save that in a
year right?
The reason why this is, is because when you deal in big numbers the profit is also big. Don't be
afraid of this because remember, you are not responsible for
the loan.
You have the tenant paying for almost half of the loan
and the tax man paying another 25% of the loan and they are
helping you along the way. Depending on your taxable income and
the type of property you invest in, being new or old.
But as I always say, when you start with Investing always look
at your “comfort-ability level” and don't exceed that.
Start off with
one property and once you are comfortable with debt and
owning an Investment Property, you can move on to your
second and so on.
If you have been putting off deciding whether Property
Investment is for you or not, don't..... as there are too many
long-term benefits to gain from when it's done properly.
I hear people say, "We are thinking about doing it, but not just
yet".
I say, what are you waiting for?
When is it ever the right time to
do
Anything?
The only time you move ahead in life is when you decided to
do something about it, that's it.
Five years will pass and you will still
regret not doing it...
"3 Diseases That
Kill Your Success"
Do You Suffer
From Any One Of These?
Procrastinator:
Always putting things off.
Thinker:
Just keeps on thinking what to do, like the guy that waits for
everyone else to jump in the water before he does.
Detailitis:
Needs
to have everything in order before he can do anything,
Eg- Makes sure all the items on the shelf are pointing in the
right direction.
Remember life is too short to
think about it and to waste time- I say do it NOW!
I know that you need guts to do it, but like
anything, once you have done it, you will wonder why you were
so hesitant and wish you had made the move years ago.
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