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Let's compare buying an investment
property compared to
saving the deposit or putting it on your mortgage.
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I am about to
show you what the rich already know. Let's create a comparison
against putting $40,000 in the bank, paying it off your mortgage
or buying an average investment property over 30 years.
|
Option |
Investment Strategy |
Increase in net worth or saved after
30 years |
|
A |
Put $40,000 in the bank at 6%
p/a
(if your lucky to get that on avg) |
$200,903
Increased Value |
|
B |
Pay $40,000 off your 30 yr $250,000 mortgage
at the start at avg 6% interest rate |
$137,246
Saved on Mortgage |
|
C |
By an Investment Property Valued at
$390,000
with avg 6% growth |
$6,023,000
Net worth of Property |
So how does that work and why is Option C
around 30 times better than saving money in the bank. It is the
power of leverage. You see, you only had to put down a $40,000
deposit to control an asset worth $390,000 on a 95% Loan to
Value ratio. (nb: some properties can
require cash input until they become cash flow positive)
This means you are getting growth on $390,000
now instead of only $40,000 if you put that in the bank at the
same rate as you got with capital growth. Imagine if after a
couple of years you then used your increased income to buy
another property, and then another and so on. Go use our Free
Loan Calculators by clicking on the Calculators button above and
do the figures your self.
Well check this out below. If you buy 1
property every 2 years for 20 years and then hold those
properties, then after 23 years you could have a net worth of
over $10 Million dollars.

Ok, lets assume we get similar returns to what
has happened historically in Australia, which is around 6%-7%
p/a on average. And that you live that long and that blah blah
blah. Whatever happens is likely to effect everything else in
some way in terms of returns, and property has historically been
the safest investment over time. Yes Australia has a shortage of
housing and rental vacancies are at historic lows and yes this
may not happen forever, and yes prices can go up and they can go
down.
But one thing is for sure. If you do nothing,
then that is what you are likely to get. Nothing! And yes there
are risks with everything. So if you just put your money in the
bank, what's to say the bank wont go bust. Ask about a million
Americans that lost money in banks that foreclosed recently how
they went with that. Or ask those that lost money when the stock
market collapsed what happened to their superannuation and
stocks.
You see with property, you have
direct control over the asset, unlike many other forms of
investments. And yes, diversification is a good idea, and
putting all your eggs in one basket may not be. And you want to
make sure that you just don't diversify by putting all your eggs
in just a bigger basket.
You could start up a business,
but they say 80% of businesses go broke in the first 5 years,
and then you would have to employ staff, hold stock, pay wages,
training, performance reviews and uggh, I am feeling queeezy
already.
You see there are generally 2
types of property investors, Active and Passive, and with our
sound strategy this is generally what is called Passive
investing, as you simply buy properties and hold them for long
term capital growth. Some people want to be Active property
investors and try to add value quickly, but we don't believe in
high risk strategies that eat into your life, take up all your
spare time and money and can go drastically wrong.
Let's say you are an Active
Investor and that you bought a property to renovate, whilst you
keep your day job to maintain living expenses and pay the
interest on your home and reno, and you make $50,000 on that reno after all costs are
taken out, such as construction costs, interest, tax, selling
fees etc. Well to make $10 million dollars you would have to do
up to 200 successful renovations. At the rate of 2 per year that
would take you up to 100 years of hard work. Are you getting my
point.
Well, if you want to find out how
to create a sound property investment portfolio while continuing
to do the things you are still doing, minimise risk and possibly
set your self up for an early retirement, then give us a call
now on 1300 722 532 and we will assist you with your plan.
This valuable and important event
is normally $399.00, but it is now FREE for a limited time only.
You see, we can't go on giving this valuable service away for
ever for free. But we want to help as many people as we can, and
guess what, we actually get paid by the lenders etc for
providing this service at no extra fee to you, if you get a loan
through us that is. If not, then no hard feelings, maybe one day
we will or a friend of yours may see us also and use our
service.
So if you just want to sit around
and work for the rest off your life, hoping to win the lotto or
something and then go on the pension or live off your
superannuation, hmm, if there is one when you retire, then do
nothing and close this web page now and go back to sitting on
the couch and watch TV!
Or else book in for our next
property investment seminar by registering online now at
http://www.jetlending.com.au/property_investment_seminar.htm
and we will see you there!
To your success!
Jet Lending
Ph: 1300 722 532
____________________________________________________________________________________________
The compliance bit:
Disclaimer: This information is generic in nature
and does not take into account your personal situation. Past
performance is not always a reliable indicator for future
performance. Any forecasts given in this information are
predictive in character. Whilst every effort has been taken to
ensure that the assumptions on which the forecasts are based are
reasonable, the forecasts may be affected by incorrect
assumptions or by known or unknown risks and uncertainties. This
information has been produced in good faith and is to be used as
a general guide only. No liability for negligence or otherwise
is assumed by Jet Lending for any loss or damage suffered by any
party resulting from their use of this information. We recommend
you seek the advice of a qualified professional to take into
account your personal situation etc. |