The 3 (Very Rich) Uncles Who Are Ready to Help You Make Money With Investment Property
The concept of the 3 Rich Uncles is KEY when venturing into investment property for the first time.
The concept of the 3 Rich Uncles is KEY when venturing into investment property for the first time.
Not everyone understands they have 3 generous ‘Rich Uncle’ in their lives. I certainly didn’t! No Uncle Robert. No Uncle Peter! Unfortunately.
So, some people live their lives thinking they really have to do it all themselves financially. They work as hard as they can and save as hard as they can. With any luck by the end of the day there is some money leftover for the kids, retirement and recreation.
One of the things I have discovered in this industry is that there are alternative ways to financial freedom. Smarter ways that mean working harder isn’t necessary and saving is just a bonus.
If you understand The 3 Rich Uncles concept, it’s possible to implement substantial investment and wealth creation strategies. They will reduce your home loan and improve your cash flow- using none of your own money.
WHO ARE THE THREE RICH UNCLES?
No 1: The Bank.
Ten years ago, you might have bought a home for $200,000. It’s now worth $700,000- a substantial growth that has only cost you your deposit. Ten years ago, your deposit was 10-20{830d1043633127e1fb46cc80e8e725429e813d4a1f208e7acb534f94035a1f28} of the home’s worth- so around $40,000. The rest you borrowed from your very generous 1st Rich Uncle- The Bank.
The good thing about the bank is that it isn’t interested in profiting off of your profits. It only wants repayments and the interest agreed upon. So you could repay as you go or when you have sold their house- a very generous rich uncle when taken advantage of wisely! They want to be paid back but as long as you don’t overestimate your means it’s all highly negotiable.
As for the homeowner, they now have $500,000 worth of increased capital because of their use of the bank.
The Alternative?
People rent because they think they can’t afford to buy.
However, renters in a skyrocketing market will have spent enough to repay a mortgage with nothing to show for it.
Don’t ignore Rich Uncle Number 1- even if the thought of debt scares you! It’s good debt.
No 2: The Tenant.
Having someone to pay you to live in a house you own means you will pay it off much faster to your 1st Rich Uncle, the bank. This leaves you in the clear sooner- owning your own home and accumulating credit instead of repaying debt.
Even having a share tenant perhaps in a spare room or granny flat will speed up the process! Reducing your home loan faster will increase the banks likelihood to lend you money for your next investment property.
With the majority of properties we source, we can provide 3 year rental guarantees from reputable local Real Estate Agents. This ensures a reliable, steady cash flow to ensure you can service the loan.
No 3: The Tax Man
A lot of people are really concerned. They want to get out of debt before they start to create assets. The aim of this exercise is to do both!
Being able to pay off your home loan? Fantastic.
Being able to create assets? Even Better!
When the two of them are put together, you have investment gold. The little bit in the middle? That is where tax comes in.
At the moment your home loan is not deductible. The interest on that is not deductible. If you had an investment loan, the interest on that would be deductible. The leverage on that is really strong.
You have got to find a property that’s got strong growth, strong rates and strong tax benefits.
So, if the average family with a mortgage that’s going to spread out over 30 years puts a suitable investment property next to the home, the two work together.
Instead of taking you 30 years, your home loan will pay out in about 10 – 12 years- depending on your tax rates.
Learn to work with them and use them to your advantage and you will learn to love your rich uncles- they will make investing in property a much more attractive proposition.
If you want more information on the 3 Rich Uncles and how they can secure your financial freedom, book in with Profitable Investment Concepts today for a free consult.
