I will deliver weekly to your email the investment properties and 1st home buyer properties that I have selected.
These are properties that I believe have a high probability of achieving the maximum EQUITY in the shortest amount of time possible when purchased at the right price.
This is what you require to achieve financial freedom from property.
THE MAGIC WORD IS “EQUITY”.
BUILD EQUITY BY MAKING ASTUTE INVESTMENT PROPERTY PURCHASES. THE CORRECT PROPERTY CHOICES…NOT DUDS!!
By holding onto these properties long term, you will likely experience substantial capital growth. It really is that simple.
EQUITY IS YOUR VEHICLE FOR RICHES.
It is not complicated. It is not scary. It is not a dream that cannot be realised. It is yours to take……you can hold it in your hands!!!
Through equity, your property can be making money for you, even while you sleep. Tapping into your equity allows you to add properties to your portfolio quickly by freeing up cash for further property purchases rather than saving up for deposits through traditional methods such as savings from your job. In a nutshell, the more quality properties you have in your portfolio, the more equity you will be able to accumulate. This is not a get rich quick or overnight strategy, but a proven strategy that will take anywhere between 5 -15 years depending on you.
As per the famous quote from the Chinese philosopher Lao Tzu:
“The journey of a thousand miles begins with a single step.”
…… SO TAKE THAT FIRST STEP!!
With property investing you must exercise patience. Exercise patience and your inevitable riches will come. Property in Sydney is a safe bet. It will always grow over time. (see chart)
As per the wise words of Earl Nightingale:
“Don’t let the fear of the time it will take to accomplish something stand in the way of you doing it. The time will pass anyway; we might just as well put the passing time to the best possible use.”
How Borrowing against Equity Works
Simply, equity is the difference between the value of your home & how much you owe the bank against it. So if your home is worth $800,000 & you owe $500,000, you have $300,000 in equity, ($800,000 – $500,000). You can use this equity as security with the bank & borrow against it to put as a deposit for the purchase of your next investment property.
However, you can’t use 100% of your equity. Banks will typically lend around 80% against the equity.
So in our example let’s look at how this works where the bank will lend 80% against your equity:
- Value of your property x 80%; ($800,000 x 0.8 = $640,000)
- Less your debt of $500,000 ($640,000 – $500,000) = $140,000 of useable equity)
- This $140,000 is totally available to you for your use as a line of credit.
Use this amount towards the purchase of your next investment property.
RINSE, RECYCLE, REPEAT. …. BUY & HOLD
That’s your strategy…
With this “BUY & HOLD” strategy, eventually you get to the point (the aim is within 10 years of your 1st investment) whereby your ever increasing pool of equity from which you can readily use pays for all expenses & provides you with the amazing lifestyle that you dream of….financial freedom!! `
Aim to purchase at least 3 well chosen properties in the first 5-6 years. Say your 1st property in year1, your 2nd property in year 3 & your 3rd property in year 5-6.
On average your properties should double in value between 7-10 years. It is very possible & realistic to acquire 3 – 5 properties within 10 years.
This diagram illustrates how houses prices in Australia generally double in value every 10 years. Of course, depending on the market conditions, some properties may double in less than 10 years & others may take longer than 10 years to double in value.
ATO statistics indicate that 72% of property investors only own 1 property. Even more staggering, is that only 9.23% of investors own 3 properties or more & a tiny 0.88% of investors own 6 or more properties (this is less than 1% of the Australian population). This is due to lack of proper direction & the uncertainty that people have that they are buying the right property that meets their needs.
Each property comes with a thorough report from core logic detailing all the statistics for the area. Take my property recommendations, inspect the properties you are interested in, carry out your due diligence. negotiate the price with the agent & purchase the property.
Following my leads will also imprint into your subconscious mind valuable training that will provide you with the tools to increase your awareness on how to recognise great investment properties as well as how to maximise potential equity & profit from your assets. You too will become a savvy & serious property investor.