How to make big profits in real estate…

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

 

McCarthy Group - the property investment experts...

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