The
Secret Is Under Your Feet!
We want to share the secret to making some real money
in property investment; simply free up the investment
you have in your current home (called
“equity”) and use it to finance a second
property. It’s that simple. And it works. And
more than a million ordinary working Australians have
done so.
Over the past 70 years, property in major Australian
cities has grown at an average rate of 7.5 to 8 per
cent, compounding every year. Just think of your own
home. Chances are it has doubled in value over the
past 10 years.
And it could well re-double in the next 10 years.
Just imagine how much you would be worth if you had
bought two properties when you started out. At the
time the bank or building society probably wouldn’t
have lent you the money needed. But all that has changed.
Banks are now eager to help you own a second home
because they know that,
- investment properties have reliable income streams
- property values continue to rise
- few things are as safe and secure as bricks
and mortar.
You probably know all this already. You know that
owning is better than renting, and that owning two
or three houses instead of one, could set you up for
life. But you haven’t acted yet, and are missing
a big opportunity.
Your second property is easier than
the first
Most people are amazed to learn that it’s far
easier to own a second property than it is to buy the
first. How is that possible? It’s hard enough
meeting your existing mortgage payments on your current
home. How could you afford a second one?
The answer is that the tenant contributes about a
third of the cost of the mortgage repayments. The tax
office then chips in with a similar amount in tax rebates.
Which means you only have to find the difference.
Why does the tax office do that?
The government makes this generous concession because
it decided that private investors would be the preferred
suppliers of rental property, which therefore takes
the pressure off the government to provide it.
So, many years ago, the tax office worked out a plan
to incentivise private property investment. All things
considered, it’s been a great move.
Why bother?
There are lots of reasons why people just like you
decide to buy a rental property. Some are motivated
for tax reasons. Others want to retire early. Then
there are those who just want to enjoy the feeling
of creating wealth for themselves over and above their
normal income.
However, most people make a move when they discover
how little money they’ll actually receive through
normal channels when their working days are over.
Even with superannuation, 70% of retired Australians
live on less than $300 per week. The trouble is they
don’t discover this until it’s too late!
“Are you sure?” you’re probably
wondering. “That sounds like an awfully small
amount to live on.”
But it’s true. No-one is pulling your leg!
And it doesn’t only apply to blue-collar workers.
Some people simply cannot afford to buy a rental property.
So what happens to them? In reality there’s always
the Age Pension to fall back on after super runs out.
People get by. They survive. But certainly not with
the level of income and comfort that they’d hoped
for all their working lives.
It’s not that bad if they own a family home.
But $300 scarcely covers the weekly groceries, which
leaves them in a situation of permanent struggle. When
work stops and the income with it, people in this position
are forced to make sacrifices they never imagined.
No more luxuries. Even birthday and Christmas gifts
become a problem. Lots of things are simply no longer
affordable.
It’s not pleasant thinking, is it? Which is
why lots of people try not to think about it as they
get older, until finally, it’s too late.
There is a way out
The good news is that there can be a happy ending
after a lifetime of hard work. But only for those
who have the courage to face up to reality, who accept
responsibility for the situation that confronts them,
and who devise a plan and act on it.
This is how it works. Provided you can fulfil certain
basic conditions, it is possible to design a lifestyle
plan that will help you to have enough money when you
need it most.
You need to
- have equity in your own home or apartment
- have regular employment, with a minimum household
income of $80 000 if both partners are working, or
$65 000 if you are single
- have a sound credit record.
It’s that easy! Need help with your property
investments? Contact us now
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