Does that sound too good to be true? Click bait I can’t possibly deliver? If you are sceptical, read on. It is not difficult and does not require and special skills.
In fact, we do this often for our clients and it is something we love showing people. Here is how:
We help many first home buyers in Sydney and whilst organizing a mortgage for a young couple one day some numbers started popping in my head. (not that this only works for first home buyers by the way!). By getting this couple into their own home before they are 30 the multiplying effect of that property over time meant they would be $5,000,000 better off by the time they retired!
And as they are still young a 30 year mortgage was easy to organize so they get the benefit of time. Let me explain:
- They were buying an apartment in Sydney for $850,000 (pretty standard price for an apartment close to the city)
- That apartment will double in value roughly every 12 years
- That means the value will be $1,700,000 in 12 years time
- $3,400,000 in 24 years time
- $6,800,000 in 36 years time
- (Which means it will sit somewhere in the middle of $3,400,000 and $6,800,000 at the 30 year mark which is $5,100,000!)
- And in that 30 year time the mortgage should be $0
And that’s it!
$5m in equity or savings or value they would not have had if they kept renting! And if you have a home already and would like to do this, just buy an investment property!
If that sounds good to you, check out our First Home Buyers page or investment page