Duplicating The Process Is Key To Building Wealth
Once you’ve paid down a substantial amount of your home’s mortgage, normally after only 18 – 24 months, it’s time to duplicate the process.
Like all good businesses, we have established processes that are followed each time to reduce risk and enhance investment success. We duplicate and duplicate and duplicate.
You won’t need to put in any additional personal savings towards a new deposit. For a little while longer you will continue to contribute your current monthly payments of $2,027.
Our finance team will lead you through a redraw or refinance process to access a new investment deposit. This is free money. You didn’t save up for it, again you’ll simply draw it from a home loan that you were going to take 20 years to pay off. We’re now going to use that lazy equity in further building your financial position and create more passive income assets.
Investment property number two will create two more income streams for you.
New estimated monthly income with second investment property:
| Clear Rental Income = | $1,854 per month |
| Tax Savings = | $833 per month |
| Total monthly income = | $2,687 per month |
And now if we total the new income from the second property ($2,687) with the first investment property ($4,714), your new monthly income stands at $7,401.00.
That’s an additional $88,812.00 per year of additional income.
As you can start to imagine, your home’s mortgage is now going to start disappearing much quicker than ever before. You’ll completely smash it!
Portfolio building starts with just one investment. You’ve now got two investments that will grow in value for generations to come.
From this point forward, your investment portfolio starts to get exciting. Legacy System starts to gather exceptional speed and your portfolio becomes exponential.
You are now able to acquire investment properties at a faster rate and are able to redraw to buy more growth assets and create additional passive income streams at a faster rate.
Did you know that there’s only 2.1m Australians who invest in property and that 1.95m of those only own one or two properties.
Two investment properties is a good start, but if you want to build generational wealth and live with financial freedom in the future, it’s time to get your strategy moving forward. It’s time to duplicate the system again with your third investment.
We believe in a balanced portfolio and we’ll look at a range of investment options that meet our Smart Selection Criteria. This may be interstate regions where we’ve identified areas that will grow over the long term. Or we may look at dual key properties with higher cash flows or multiple terraces.
We still won’t access your personal savings, we’ll utilise the funds created from the investment properties to fund the new deposit to further build your wealth.
New estimated monthly income with third investment property:
| Clear Rental Income = | $2,600 per month |
| Tax Savings = | $1,250 per month |
| Total monthly income = | $3,850 per month |
The new income from your combined three investments and your existing repayments total $11,251 per month.
Your investments are now producing over $135,000 per annum in passive income. Your money is now working for you.
What’s next? More portfolio building – duplicating the process to accumulate more assets, while you continue to pay down your debt as you go.
The more assets you have, the higher level of equity and wealth you will create. Holding your assets for the long term is essential for compounding growth to occur. Plus, the asset’s passive income streams will increase over time.