It is now 4.5 years since we started, we control 3 properties valued at $1,270,000 with equity of $261,000.
Now we can choose to wait, do nothing else, and in 5 years we will have equity in the property of over $1 million dollars. How is that possible?
The Power of Compounding
$1,270,000 + 10% = $1,397,000 (5.5 yrs)
$1,397,000 + 10% = $1,537,000 (6.5 yrs)
$1,537,000 + 10% = $1,690,000 (7.5 yrs)
$1,690,000 + 10% = $1,859,000 (8.5 yrs)
$1,859,000 + 10% = $2,045,000 (9.5 yrs)
$2,045,000 less $1,009,000 loan = $1,036,000 equity
Not only are we now a property millionaire, 9.5 years after we began, our wealth is now growing at a staggering $204,500 per annum compounding. If you had started on this plan at age 20, you are a millionaire by 30.
Remember, we are buying properties in areas targeted for high growth, and so these returns are very achievable.
Summary: 7 Steps to Becoming a Property Millionaire
Now we can choose to wait, do nothing else, and in 5 years we will have equity in the property of over $1 million dollars. How is that possible?
The Power of Compounding
$1,270,000 + 10% = $1,397,000 (5.5 yrs)
$1,397,000 + 10% = $1,537,000 (6.5 yrs)
$1,537,000 + 10% = $1,690,000 (7.5 yrs)
$1,690,000 + 10% = $1,859,000 (8.5 yrs)
$1,859,000 + 10% = $2,045,000 (9.5 yrs)
$2,045,000 less $1,009,000 loan = $1,036,000 equity
Not only are we now a property millionaire, 9.5 years after we began, our wealth is now growing at a staggering $204,500 per annum compounding. If you had started on this plan at age 20, you are a millionaire by 30.
Remember, we are buying properties in areas targeted for high growth, and so these returns are very achievable.
Summary: 7 Steps to Becoming a Property Millionaire
- Get a deposit
- Find a great deal (look for a property that is expected to grow at an above average rate)
- Buy off the plan property (save on stamp duty)
- Use leverage and deposit bonds (to minimise cash outlay)
- Settlement (get loan from lender and use equity from property)
- Renting out the property
- Buy more property and use the power of compounding
0 comments:
Post a Comment