The Power of Gearing Exponential Growth 100.000 investment property…. 20% Deposit 80% Mortgage.

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Presentation transcript:

The Power of Gearing Exponential Growth investment property…. 20% Deposit 80% Mortgage

Deposit Mortgage The Mortgage remains the same throughout…. …and you benefit from all the increase in equity value Equity growth in value The Power of Gearing Exponential Growth

Each year assuming a property grows in value by 5%… Deposit Mortgage Year One growth: Two Year growth: Four Year growth: Five Year growth: Three Year growth: For Illustration Purposes Only the Figures are Based on 5% Annual Growth Ten Year growth: ??????? The Power of Gearing Exponential Growth

How does this translate into real money? 20% Deposit 80% Mortgage With a investment property… Deposit of Mortgage of Growth rate of just 5% Net compounded Growth after 10 years of The Power of Gearing Exponential Growth Compounded (exponential) growth in value

Compare this to a long term savings account Compare this to a long term savings account at 5% interest Capital of in a savings account Compounded Growth after 10 years of Capital of in an investment property Compounded Growth after 10 years of Which would you prefer? The Power of Gearing Exponential Growth

Leveraging Your Money Imagine you buy an investment property… Investment

Leveraging Your Money How does this translate into real money? Investment With a investment property… Growth rate of just 5% Net compounded Growth after 10 years of Compounded(exponential) growth in value growth in value

Property 2 100,000 Deposit 20,000 Passive Income 200 p.m. Leveraging Your Money Property 4 100,000 Deposit 20,000 Passive Income 200 p.m. Savings 100,000 Property 1 100,000 Deposit 20,000 Passive Income 200 p.m. Property 3 100,000 Deposit 20,000 Passive Income 200 p.m. Property 5 100,000 Deposit 20,000 Passive Income 200 p.m. 1,000 monthly passive income 1,000 monthly passive income

Leveraging Your Money k Total Property Portfolio Value k k k

Leveraging Your Money Leveraging Your Money So if you invested in 5 properties instead of just one property… x Deposits of Growth rate of 5% Compounded Growth after 10 years of: x 5 Compounded Growth after 10 years of: x 5

Your Property Investment at average growth over 10 years at 5% would give you an extra Your Property Investment at average growth over 10 years at 5% would give you an extra ( x 5 properties divided by 10 years) per year PLUS Yearly Passive Income Leveraging Your Money For Illustration Purposes Only the Figures are Based on 5% Annual Growth per year per year

Property Price Agreed Purchase Price Discount Negotiated Plus associated costs: Deposit of 15% required Taxes Legal Fees Broker Fee Total Costs MONEY IN YOUR POCKET ON COMPLETION PLUS BUILT IN EQUITY OF Built in Equity - BMV

Monthly Income of 6 Rented Rooms 125 per week 2.708pcm Costs: Monthly Mortgage Payment at 5% 1.363pcm Monthly Costs e.g. Gas, Electric, Local Tax, Cleaner, Gardener etc 400pcm ________________________________________ Passive Monthly Income 945pcm PASSIVE INCOME 945pcm Passive Income

Property Price Agreed Purchase Price Discount Negotiated Plus associated costs: Deposit of 15% required Taxes Legal Fees Broker Fee Total Costs CASHBACK ON COMPLETION PLUS BUILT IN EQUITY OF Built in Equity - BMV

Monthly Income of 6 Rented Rooms 125 per week 3.250pcm Costs: Monthly Mortgage Payment at 5% 1.664pcm Monthly Costs e.g. Gas, Electric, Local Tax, Cleaner, Gardener etc 400pcm ________________________________________ Passive Monthly Income 1.185pcm PASSIVE INCOME 1.185pcm Passive Income

Total of Built in Equity + Amount of in your Bank Account + Passive Income of Per Month With just 2 Properties ….

Real Estate