Have you ever wondered how successful property investors manage to grow their wealth so quickly?
Regardless of their background and education, it always starts the same way – with one property.

Why should I invest in property?

Last time we discussed the importance of planning for a comfortable retirement, and some of the ways that property investment can help you to achieve your financial goals.

Not only could you avoid working into your seventies, you could improve your quality of life in the short term – perhaps switching to part-time work in just a few short years.

 

Crunching the numbers

Now I’d like to show you in more detail, how you could improve your lifestyle by purchasing multiple investment properties – and holding on to them in order to achieve capital growth over time.

In the example below, imagine that you started by purchasing one investment property on an interest-only loan. You then purchase another property in year 3, and a third in year 6.

 

Year Value Loan Value Loan Value Loan
1 $400,000 $360,000
2 $424,000 $360,000
3 $449,440 $360,000 $450,000 $405,000
4 $476,406 $360,000 $477,000 $405,000
5 $504,991 $360,000 $505,620 $405,000
6 $535,290 $360,000 $535,957 $405,000 $535,000 $481,500
7 $567,408 $360,000 $568,115 $405,000 $567,100 $481,500
8 $601,452 $360,000 $602,202 $405,000 $601,126 $481,500
9 $637,539 $360,000 $638,334 $405,000 $637,194 $481,500
10 $675,792 $360,000 $676,634 $405,000 $675,425 $481,500
11 $716,339 $360,000 $717,232 $405,000 $715,951 $481,500
12 $759,319 $360,000 $760,266 $405,000 $758,908 $481,500
13 $804,879 $360,000 $805,881 $405,000 $804,442 $481,500
14 $853,171 $360,000 $854,234 $405,000 $852,709 $481,500
15 $904,362 $360,000 $905,488 $405,000 $903,871 $481,500

 

After 15 years, all three properties have grown enormously in value, and you might then choose to sell one property and pay off most of your debt on the other two. This would allow you to keep more of the rental income in your pocket, which might be perfectly timed if you’re just about ready to retire or reduce your working hours at that stage.

Is it right for me?

Of course, property investment isn’t for everyone, and there are risks and rewards to consider.

In my next article I’ll show you how easy it is to get started on your investment portfolio and start planning for financial freedom, whether you want to plan for retirement, or improve your situation sooner than that.

 

Ready to get started?

If you’re ready to learn more, contact me today and book a no-obligation appointment.

Please Note: Information provided in this article is general in nature and does not constitute financial advice. Whilst reasonable care has been taken in preparing this information, nothing contained herein should be construed as being specific to your investment objectives, financial situation or particular needs. As a Mortgage Broker, I am not qualified to advise you on your financial objectives and personal taxation matters. It is of utmost importance that you always seek the advice of qualified Financial Planners and Tax Accountants.