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

3. 20.000 Deposit 80.00080.000Mortgage 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

4. Each year assuming a 100.000 property grows in value by 5%… 20.000 Deposit 80.000 Mortgage Year One growth: 5.000 Two Year growth: 10.250 Four Year growth: 21.550 Five Year growth: 27.628 Three Year growth: 15.762 For Illustration Purposes Only the Figures are Based on 5% Annual Growth Ten Year growth: ??????? The Power of Gearing Exponential Growth

5. How does this translate into real money? 20% Deposit 80% Mortgage With a 100.000 investment property… Deposit of 20.000 Mortgage of 80.000 Growth rate of just 5% Net compounded Growth after 10 years of 62.889 The Power of Gearing Exponential Growth Compounded (exponential) growth in value

6. Compare this to a long term savings account Compare this to a long term savings account at 5% interest Capital of 20.000 in a savings account Compounded Growth after 10 years of 12.577 Capital of 20.000 in an investment property Compounded Growth after 10 years of 62.889 Which would you prefer? The Power of Gearing Exponential Growth

7. Leveraging Your Money Imagine you buy an investment property…. 100.000100.000Investment

8. Leveraging Your Money How does this translate into real money? 100.000 Investment With a 100.000 investment property… Growth rate of just 5% Net compounded Growth after 10 years of 62.889 Compounded(exponential) growth in value growth in value

9. 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

10. Leveraging Your Money 100.000 20k Total Property Portfolio Value 100.000 20k 100.000 20k 500.000 500.000 20k

11. Leveraging Your Money Leveraging Your Money So if you invested in 5 properties instead of just one property… 314.447314.447 5 x Deposits of 20.000 Growth rate of 5% Compounded Growth after 10 years of: 62.889 x 5 Compounded Growth after 10 years of:62.889 x 5

12. 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 ( 62.889 x 5 properties divided by 10 years) 31.444 per year PLUS 12.000 Yearly Passive Income Leveraging Your Money For Illustration Purposes Only the Figures are Based on 5% Annual Growth 43.444 per year43.444 per year

13. Property Price385.000 Agreed Purchase Price311.000 Discount Negotiated 74.000 Plus associated costs: Deposit of 15% required 57.750 Taxes 11.550 Legal Fees 1.000 Broker Fee 1.700 Total Costs 72.000 MONEY IN YOUR POCKET ON COMPLETION 2.000 PLUS BUILT IN EQUITY OF 57.750 Built in Equity - BMV

14. Monthly Income of 6 Rented Rooms 5 @ 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

15. Property Price469.995 Agreed Purchase Price 379.995 Discount Negotiated 90.000 Plus associated costs: Deposit of 15% required 70.500 Taxes 14.100 Legal Fees 1.000 Broker Fee 2.000 Total Costs 87.600 CASHBACK ON COMPLETION 2.400 PLUS BUILT IN EQUITY OF 70.500 Built in Equity - BMV

16. Monthly Income of 6 Rented Rooms 6 @ 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

17. Total of 128.250 Built in Equity + Amount of 4.400 in your Bank Account + Passive Income of 2.130 Per Month With just 2 Properties ….

18. Real Estate