mrd is excited to announce the release of our greatly enhanced software program, Retire on Your Equity, (‘ROYE’). ROYE provides “Answers To The Questions On Every Investor’s Mind”.

ROYE was developed in-house over two years ago. However, in response to the changing global credit environment, our team began revising the program. Now ROYE delivers so much more than was previously possible.

I am very proud of the finished product and while I wish I could say that I personally developed it, I can’t. The team at mrd has developed ROYE, a team that is ethical, intelligent and above all, extremely hard working.

ROYE is mrd proprietary software and has been redeveloped over the past six months as part of our very important Customer Care Program. It is unique and has no marketplace competition. Totally exclusive, it is a software program that can put into actual numbers, what can be achieved given certain parameters. It provides answers to the questions on every investor’s mind:

1. When will my properties be able to support my family and me?
2. How many properties will I need to purchase to secure my future financial needs?
3. How quickly will I need to put my portfolio together?
4. What is the best way to use my portfolio once it is built?
5. How does living on debt and not paying it back actually work?
6. Will I be able to live off the rental income received?
7. Will I have to sell my portfolio once I retire?

Not only does ROYE answer these questions, it answers them relative to your personal situation – your expectations, your parameters, and your plan.

At mrd we know investing is personal and we are committed to Customer Care. We only ever espouse the virtues of responsible debt management.

ROYE is conservative. At mrd, we will never exaggerate the benefits you will receive by building an investment property portfolio. Below are some of the conservative assumptions made by ROYE:

1. ROYE calculations are projected out up to 35 years into your retirement so you can see how the money does not run out.
2. Although the vast majority of retirement goals can be achieved within 10 years, ROYE can project the date of your retirement out to 20 years from now (for those who prefer to work longer).
3. ROYE assumes each loan for a new property will be 104% of the contract price. (Borrowing 104% allows purchasing and settlement costs to be factored in.)
4. ROYE assumes all funds required to build your portfolio are borrowed, requiring none of your own cash. (Keep your cash for your current lifestyle while your equity builds wealth for your future lifestyle).
5. ROYE assumes you will NOT pay down any principal on any of your loans (including your own home). This ensures projected available equity figures are more likely to be conservative, not overstated.
6. In ROYE, after ‘retirement’, any remaining debt on your personal home needs to be covered by rental returns. This is included in the net rental calculation.
7. In ROYE, debt on an investor’s own home is separated from the debt on the investment properties. This ensures projected rental yields are not inflated by ‘assuming’ rental income on the value of a person’s own home.
8. In ROYE, default rental return is calculated at 5% of the total value of the investment portfolio.
9. Default rental return is then discounted by 25% so as to allow for property expenses including body corporate fees, council rates, etc. (This 25% reduction is consistent with that used by the majority of banks when assessing rental income in borrowing calculations). The figure can be changed to show higher or lower ‘what if’ scenarios.
10. ROYE will calculate and factor in rental income shortages and take any required top-ups from existing available equity.
11. In ROYE, any net rental income surplus is applied to overall debt.
12. The front page of ROYE shows either ‘PASS’ or ‘FAIL’. This result reflects a calculation where your overall loan to value ratio (LVR) is less than 50% of your total property value and is reducing year by year.
13. ROYE gives you a realistic assessment of the amount you can responsibly draw down each year. This of course, takes in all of the above as well as reflecting the variable parameters we use to reflect each individual investor’s personal situation.
14. ROYE gives you results in today’s dollars plus a 3% per annum consumer price index (‘CPI’) rise. This ensures the impact of inflation is also factored in to each calculation to maintain your standard of living. NB: The 3% CPI rise is our default setting but can be altered to demonstrate ‘what if’ scenarios.

Added to the many Customer Care measures we have included in our COMPLETELY UNIQUE ROYE program; we also provide you with FIVE very different retirement options:

1. Retiring on just your property equity.
2. Using your equity to invest into a Managed Fund(s) and retire on the income those investments produce.
3. Waiting until your overall rental income surplus can underpin your retirement needs.
4. Selling off a part of your investment portfolio to pay down the debt on the remainder… and then living off the remaining rents.
5. Selling your entire property portfolio and investing your profits with a fund manager (or similar) and retire by drawing down an annuity.

Again in all of the above options, ROYE will make the necessary assumptions to ensure we do not exaggerate the possible outcomes. For example, ROYE will:

1. Factor in Capital Gains Tax (‘CGT’) where applicable.
2. Assume a top marginal tax rate of 45% is applied to any capital gain.
3. Assume properties sold were held for more than 12 months meaning CGT is applicable and is then calculated at 50% before being added to the top marginal tax rate.
4. Factors in 3% as the cost of selling a property.
5. In Retirement Option 5, ROYE assumes all taxes and debts are fully cleared. NB: This leaves an investor owning their own home with a lump sum to invest elsewhere. We believe this is probably the closest direct comparison with superannuation.

I will be displaying the power of ROYE in the upcoming web seminars I am hosting from next Wednesday. If you have not already done so, I encourage you to register and be involved in one of these sessions.

As a further incentive, (because I truly want you to benefit from our exclusive software), I will be giving a very genuine and worthwhile gift to all who participate. And this gift, if applied, should result in a huge financial advantage to you five years from now.

I look forward to ’seeing you’ on one of my upcoming webinars.

To register, click here

Happy Investing,

Nick Lockhart
mrd Customer Care Program… because investing is personal