There is a Secret to Buying Investment Properties - It is in Your Home Mortgage - See What It Is
The first step.You must have property and a mortgage.
People are so busy paying off the mortgage and complaining about the mortgage they do not see it for what it is. The mortgage can be the spring that many properties flow from!!!!!!!
People look for opportunities all around and plan and make more plans. Nothing ever happens. What they cannot see is that the mortgage on their home is the opportunity they are seeking.
Take one action today and you are on the path to creating your property empire out of your home mortgage. What is that action?
Pay more into your mortgage account than the current minimal repayment on a consistent basis.
How will this simple step create a property empire?
It is the power of compound interest. Depending on how much you consistently put in, in a short time 18 months - 2 years you should have enough for a deposit to buy a second property. Use a mortgage to make up the price of the property.
The key is to buy a positively geared property. Keep the first investment interest only. Aim to have 20% of the rental available to reinvest in the mortgage of your original mortgage.
The key is to have your rental surplus and your initial surplus focused into one mortgage to ensure the maximum gain.
Now something wonderful happens.
It will take a few months less to buy the second positively geared property. Keep the new property interest only and only pay the interest. Again invest 20% of the rental back into the mortgage of your original mortgage.
It will take a few months less to buy the third property as it did the second. Now you have three dividends working against the mortgage of your home. You will be buying properties faster and faster.
Your only contribution is the surplus that you continue to pay into the mortgage.
To test this, you need to contact a mortgage broker and run the numbers through their software and mortgage calculator that see how fast a mortgage is paid down with the increased payments. This will be critical in the plan you will build in the building of wealth through investments.
Creating wealth and building a property empire is a function of understanding compound interest.
To create a property empire that is conservatively based, is cash flow positive and allows you to sleep at night is almost too good to be true. Check out the Mortgage Brokers software and mortgage calculator and discover for yourself.
John E Edwards explains how a mortgage is a wealth creation tool, and how to use the mortgage effectively to start creating wealth in your life now. Contact a specialist to get you on the right path now.
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