how to be debt free
How to Become Debt-Free and Stay That Way – Forever
Dear home owner,
If you would like to become debt-free sooner rather than later and stay that way—forever—then read on to discover my PROVEN, common-sensical method. It’s worked for me and countless others and it can work for you too…
There are essentially two ways to pay off your mortgage:
- Work hard over many years, or
- Make your asset work hard for you
Let’s take a look at each method…
First way – Work hard over many years
This is the long way.
Imagine that you have over $200,000 in mortgage debt. After you’ve paid tax, paid your family living expenses (kids’ education, food etc.) and paid your mortgage, you almost have nothing left at the end of the year, right? You might pay around $8,000 – $15,000 off your mortgage each year. Let’s assume the interest rate on a $200,000 loan is 6.5%. That comes to around $13,000 in interest EVERY YEAR in lost money (which does reduce a little over the years as the loan amount reduces). So, it is going to take you at least 10 – 20 years of hard graft to pay off your mortgage debt, depending on your financial situation. Now, look at your own incomings and outgoings and do your own calculation to determine how long it will take you to pay off your mortgage.
I call it the long way simply because, by this method, it will take you the longest time—slaving hard—to become mortgage-free.
When you work, you trade time for money. The second method reveals how you can do the opposite to pay off your mortgage and HAVE MONEY WORK FOR YOU to save you having to work hard for your money.
Second way (the smart way) – Make your asset work hard for you
Robert Kiyosaki is one of the world’s most successful property investors. He started from broke and built a fortune in real estate. Robert said that an asset is an investment property which goes up in value and gives you an income. Let me explain further…
Good debt/ Bad debt
Quite simply—avoid bad debt but embrace good debt. Bad debt will only make you poorer while good debt can help you to pay off your mortgage quicker.
A bad debt is when you borrow money from the bank to buy a car or a TV or something that goes down in value. Avoid bad debt as it takes money away from your pocket.
A good debt is when you borrow money from the bank to buy an asset (an investment property) that goes up in value. Your asset builds wealth for you while you sleep. IT works for YOU, AND it also gives you an income.
How an investment property can give you three sources of income
- Tenant Income: The tenant of your investment property pays you rent every month which covers most of your outgoings for you.
- Tax income: The second source of income is from the taxman. By owning an investment property you can get back between $3,000 – $7,000 in tax PER YEAR from the government (through depreciation of the property). In some cases you can pay zero tax.
- NRAS rebate income: If you invest in an NRAS property, you will get back $9,514 from the Australian Government EVERY YEAR (for 10 years)—TAX FREE. The NRAS scheme is an Australian Commonwealth Government scheme aimed at assisting middle-to-low-income earners by providing new, affordable rental dwellings.
Certain types of investment property, with just the two sources of income from the tenant and the taxman, can cover all the cost of owning your asset—and may also give you an income.
Now are you starting to see why investing in good debt can give you an income every year AND also increase in value, making you more money?
The longer you keep the investment property, the more income it gives you and the more it grows in value—generating you wealth while you sleep.
So, an investment property is a good debt. It puts money into your pocket and it grows in value for you. Your family home TAKES money from your pocket and so you should pay this off or minimise the mortgage on it as soon as possible. And you can do this—by buying good debt to pay off the bad debt.
For example, one of my investment properties gives me an income every month. I can be on holiday in Malaysia, Singapore, Vietnam or any other part of the world, and the income keeps coming in—and growing, year on year. AND my property has already increased in valued by over $150,000.
I CAN HELP YOU DO THE SAME.
Investment in property is a good debt as it gives you an income and makes you wealthy. And you can buy good debt to pay off your bad debt (family home).
How an investment property can help you pay off your mortgage quicker
Property prices increase in value over time. The population increases, hence demand increases, therefore property price increases. Material costs increase, labour costs increase, and the CPI increases, therefore everything costs more every year.
How much was a brand new Toyota car worth 10 years ago? How much is a brand new Toyota car worth today? Today’s cost is much more than 10 years ago, isn’t it?
How much was a house worth 10 years ago? How much is it worth today? The value has risen dramatically, right?
Like for like – everything costs more over time.
Australia’s property is safe to invest in the long term compared to many other countries around the world, because its population is continuing to increase, therefore demand continues to increase and hence property value goes up.
According to ABS* statistics, over the last 80 years in Australia property prices on average have increased by 10% per year. So, by investing in an asset now, keeping it and letting it grows in value, in a few years’ time you can sell it to pay off your mortgage. Again, looking at the ABS statistics, if you keep your investment property for 3 – 4 years, your asset will grow in value by more or less $100,000. Long term, property always increases in value.
* Australian Bureau of Statistics
Don’t work for money—let money work for you.
Invest in an asset, let it grow in value while you sleep, and let it give you an income stream.
You don’t have to be wealthy to invest, but you have to invest to be wealthy.
Investing in a property can make you wealthier and will allow you to pay off your mortgage quickly. Not investing in a property simply makes you poorer. With no property asset working for you, you have no choice but to work hard to pay off your family property.
In your consultation with us, you will find out:
- Why you don’t need money to invest
- How to buy and own an investment property without using your own money
- How the current market works and how it will perform over the next few years
- Why buying now rather than later gives you better opportunities
- How to make more money in today’s market than in one or two plus years later
- How to make money (equity) straight away when you buy
- How to invest and pay zero tax
- How to invest in a property and receive a cash incentive of $9,514 from the Australian Government—every year for 10 years
- How to save 90-95% of stamp duty when you buy
- How good leverage can help you pay off your mortgage
- How to plan and pay off your mortgage with my proven strategy
- How you can own an asset for as little as $280,000
- That the quicker you invest, the quicker you will pay off your mortgage
So, you’ve got two options…
First option: Work hard and pay off your mortgage the long, hard way… OR
Second option: Use other people’s money to buy an asset, let it grow in value for you and then use this asset to pay off your mortgage. Have the advantage of three sources of income (tenant, taxman and NRAS cash back incentive) while you live your normal current lifestyle—no headache, no hassle—just let your asset increase in value to pay off your mortgage for you.
Learn “how to become debt-free and stay that way—forever” today. Simply fill out your information below and we will contact you to arrange your free consultation.