Do this instead and put an extra $85,000 per year in your pocket.
I’m sure you’ve been told that it’s a good idea to pay the principal and interest on your home loan. After all, you save money on your overall debt, right? And that’s always a good thing.
Actually, the truth is, that’s very costly advice. In fact, paying off your home loan may be the most costly thing you will ever do!
Here’s why:
Let’s say you have a $400,000 loan on your home… And let’s say inflation is running at 3% per year. This means the real value of your loan would be diminished by 3% per year… or $12,000 each year.
By maintaining those borrowings and NOT paying them down, time and inflation is paying down the debt for you… at a rate of $12,000 per year. In time, what starts out to be a sizeable loan shrinks to almost nothing!
Most people can’t easily boost their income to pay an extra $12,000 down each year. However, if you let it, inflation will do the work for you.
Even though this news is startling for many real estate investors, it’s only part of the story. That’s because you also free up the money you were previously putting towards principal! And now you can use this money to secure another property.
Result: you can generate the equivalent of an extra $118,000 (before tax) each year – or roughly $2,200 every week – from this single strategy. The total cost to control this property? A measly $48 per week!
Take a look at these startling numbers and you’ll see what I am saying is true: More…
Personal Results & Options Plan
Using our own in-house proprietary software, mrd offers you a complimentary, no obligation “Personal Results & Options Plan” (PROP).
The PROP allows you to take charge of your destiny… and literally build your very own personalised financial wealth (or retirement) plan; in three easy steps.
Participating in a PROP is so convenient… it’s done over the internet… meaning you don’t have to leave home!
What Have Others Said About The PROP?
Spending one hour to do the PROP was 100% beneficial, and we now understand what actions we need to take to achieve our retirement goals.
Jenny and Mike T – SA
Initially we had hoped for a house or two to buy and sell to make a bit more money than what we could get from our jobs. Now we are hoping to own 4-5 properties, retire early and be financially secure for life. After doing the PROP we now have goals and plans and know what we want.
Lyndall G – WA
[The PROP] is totally tailored to my situation with the capacity to see outcomes based on many variables… it has provided proof of income potential and identified all components applicable… I’ve not seen this capability with shares or Super. PROP provided a snapshot that I could not have mapped otherwise… !” I have known Nick and mrd for several years and at all times their service, advice and direction has been exactly what they said it would be.
Mike C – WA
The PROP is very versatile and allows you to change the inputs to see the different outcomes of different situations. It showed us what our future finances will look like in five to ten years time.
Peter W – QLD
The PROP was very easy to understand and was explained step by step. I would rate the PROP a 10/10, as I now have a definite target rather than a foggy dream. I would absolutely recommend mrd to others…
Shelley H – WA
I rate the benefit of [the PROP] as an 8 or 9 out of 10… We now have a clear understanding of the many options available to us and are focussed on retiring in 7 years.
William C – VIC
If I were to rate the PROP out of ten, I would honestly give it a 15 ½. The ROYE was fantastic and its detailed report enhanced my confidence to grow an investment portfolio. It was absolutely worth the 60 minutes, and I have already recommended mrd to my friends.
Tracy S – WA
The PROP enabled us to explore different scenarios and gave us detailed information, encouraging us to continue working towards our goals more aggressively. We would rate the PROP a nine out of ten and would definitely recommend mrd and the PROP to others.
Wayne & Jen N – WA
Happy Investing,
Nick Lockhart
Our Customer Care Program works for you… because investing is personal!
Did you miss Tuesday’s webinar titled “How To Make Your Tenant Happy That You’re Raising The Rent”?
Listen To Our Recording Online NOW >>>here
Hosted by Martin Bell and recorded on 31st August 2010
This Webinar Revealed A Treasure Chest of Lucrative Landlord Ideas!
On this webinar you’ll discover: More…
Some years ago I had a number of loans with a bank – “which bank” – exactly! It’s amazing what happens when you owe enough money. I was a customer in their “Premium Accounts Office” and had a personal banker assigned to me. Let me tell you about a phone call I received from my personal banker who told me that “My Bank Has More Confidence In My Property Than In Their Bank”.
A couple of weeks earlier I received an invitation in the post to a cocktail evening which I promptly forgot about. This was then followed up by a personal call from my personal banker (PB).
I politely declined his offer citing that I was very busy.
The conversation then continued something like this:
PB – Why aren’t you interested?
Me – Well it’s primarily about shares isn’t it?
PB – Yes, but why aren’t you interested in shares? More…
Please find below a link to a copy of my “You Can Live WITHOUT Your Income” live recording.
Watch through it and you’ll discover literally dozens of profit provoking strategies.
“You Can Live WITHOUT Your Income” live recording >>>here
For example…
- Why you don’t have to live in the area you are investing – and how to buy real estate anywhere you want
- A simple 9-point checklist to assess if your real estate investments will prosper in the coming years
- How to NEVER pay too much for property. The “Magic Formula” revealed… and why it is the easiest way I have ever found to never overpay for real estate
- How to kick-start your first investment property deal. Just do this first.
- Why almost everything the media is reporting today about the property market is WRONG!
- The one little known downside of asking your bank manager for a real estate loan (if you’ve never purchased property you must know this).
- How I created $200,000 out of “thin air”… and why you can, too. Easy to do.
- Why owning an investment property should NOT negatively affect your lifestyle – and how to make sure it doesn’t happen to you.
- An easy FREE way to get a very good indication of how much rent you’ll get for your investment property
- The one key downside (few real estate spruikers admit) to commercial property
And much, much more…
Yes, this is only the beginning! That’s why you need to follow the link right now and discover the highly profitable information contained on this recording. You’ll understand what I mean when you watch the recording.
“You Can Live WITHOUT Your Income” live recording >>>here
Happy investing,
Nick Lockhart
P.S. After watching my live recording please download a complimentary copy of my Special Report titled “Straight Talk About Today’s Real Estate Prices… and What You Need To Know About The Future!” >>>here More…
A story told by a couple with an investment property in the suburb of Labrador in the Gold Coast highlights the value of knowledge and having a mentor to call on for guidance or support. I will refer to the couple as “Tony & Julia” – for no particular reason.
Labrador was once considered a poorer outer suburb, but as the Gold Coast has continued to grow, Labrador’s proximity to the broadwater has helped it evolve into a very desirable location.
Tony & Julia had held their investment property for a few years without any problem or incidence of any significance. Then one day came the call from their property manager telling them that their tenants had broken their lease and disappeared.
Had Tony & Julia had an experienced property mentor supporting them they would have:
- Understood the importance of having a landlords insurance policy in place
- Had their finances structured in such a way as to provide a slush fund (a buffer); enabling them to cope financially with their short term loss in rent
- Found a new tenant quickly
Unsure of what to do and lacking the support of an experienced property mentor, Tony & Julia (understandably) sought the advice of their property manager; a local real estate agent.
It’s easy to become consumed with small problems; such as no rental income because your tenant has done “a runner” when we take our eyes off the bigger picture (our goal or reason for investing in the first place).
“Obstacles are those frightful things you see when you take your eyes off your goal.” – Henry Ford (1863-1947)
Without support… and losing money each week left Tony & Julia vulnerable to making a poor decision. Add to that some persuasive encouragement from the agent managing their property and… you guessed it! The agent got a listing and Tony & Julia sold their property.
The Year Was 2001
The year was 2001. The local market had been flat for the three years that they had held this property. The market took off in September 2001 and prices continued growing for almost three years.
The outcome of their poor decision was that Tony & Julia failed to recover their initial investment (incl. purchasing costs etc) and the selling agent was paid a commission.
Also in the later part of 2001, Doug Wroe – mrd property mentor – bought a similar townhouse… also in Labrador. The values of Doug’s investment property in Labrador doubled over the following three years. More…
My newsletter is not a platform for politics but to educate people when it comes to “everything property”.
Therefore, with an election this week end I wanted to highlight the taxation component of the Green’s policy… because it would affect anyone and everyone who is an investor.
Below is a copy of just the Taxation part of their total policy and I want to draw your attention specifically to the part I have highlighted in red.
Vote for whoever you want this week end, that’s your democratic right. I just respectfully suggest that, as with investing in property or borrowing money from a lender… you make fully informed decisions.
Happy voting,
Nick Lockhart
Measures:
The Australian Greens will:
Taxation
22. Reduce inequities in the current personal tax system by:
- reducing tax breaks for high income earners;
- removing Fringe Benefits Tax concessions which promote increased use of motor vehicles;
- removing the concessional arrangements for Capital Gains Tax;
- only allowing losses from an investment to be offset against income from the same investment;
- abolishing the 30% Private Health Insurance Rebate in order to increase funding for public hospitals;
- taxing family trusts in the same way as companies;
- eliminating high rates of effective marginal taxation for those on welfare benefits; and
- introduce a new top marginal tax rate of 50 per cent on incomes of $1 million or over.
More…
Limited Time Only To Purchase In The Fastest Growing Region In Australia For $315,000
Developer has recognised the impact the new rail link will have on demand and has lifted prices. mrd has negotiated to have the price remain at $315,000 for our clients only. This is for a very limited time.
On Friday 6th August we highlighted the announcement made by the Federal Government, matched by the opposition if they are elected, to construct the new $1.15 billion rail link from Petrie to Redcliffe which will include the extremely popular North Lakes. The station sits within walking distance of this fantastic project with the Westfield shopping centre across the road and easy access to the M1 Motorway south to central Brisbane or north to the Sunshine Coast. See previous article >>>here
Don’t Miss This Opportunity
click on this image to view a larger version
For full Details on this project… including a comprehensive property report available to download follow this link >>>here
Yes Please:
- I would like a complimentary cash flow analysis on this opportunity prepared for me >>>here
- I would like to discuss this opportunity; please call >>>here
- I would like to put a hold on one of these properties while I find out more about them >>>here
My name is Amanda Miller and for the past couple of months I have been the Senior Loans Writer here at mrd finance. I thought it was about time for me to start putting together some useful tips and information for you all in relation to your finances and why it is so important that the right structure is set up from the get go.
We all know how important it is to have solid foundations when building a home, it needs to be stable and built correctly so it stands the test of time; the same applies with ‘HOW To Structure Your Finances”.
The Right Structure And The Right Loan Products
Right structure and the right loan products are important keys to enable you to build on your property portfolio while maximising the tax effectiveness of your investment loans.
An Unfortunate Story
Clients of mrd recently contacted us after they had reached the end of a five-year interest only term with one of their lenders. After asking the bank to extend the term of their interest only loan they were disturbed to be told “No” – as they apparently did not fit the bank’s servicing criteria for an extension. They were also told that if they decided to extend this term for another five years once they did service (i.e. after the wife returned to work from maternity leave) that it would cost them approx $7,000 in Lender Mortgage Insurance (LMI).
$7,000 In Lender Mortgage Insurance – AGAIN?
Understandably our clients were not happy. They had already paid for LMI when the original loan was taken out. So why were they being told they would have to pay $7,000 again? More…
After Chris and Rose had been reading the mrd newsletter for a few months, they trusted mrd enough to request a PROP (Personal Results & Options Plan).
If you recall, the PROP’s purpose is to design a practical, step by step financial plan for early retirement… using real estate as the investment vehicle. It’s a complimentary service offered by mrd – even though others sell lesser services for $1,000.
After participating in a PROP, Chris and Rose were pleased by the specificity of the PROP’s action plan. And they report that it “gave us a level of confidence that we had not experienced with any other property investing group”.
In fact, since the PROP, Chris and Rose have added not one but TWO more properties to their existing portfolio. And they’re gearing up for their next investment!
That’s how powerful the PROP is. It gives you the precise action steps to realise your financial goals.
The steps outlined are realistic… manageable and entirely tailored to YOUR situation.
If you would like to see a demonstration of the PROP… or seek more information, just go here:
If you’d like to request a PROP simply:
More…
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