mortgage free
mortgage free
mortgage free

How To Be Mortgage Free In 10 years!!

It’s safe to say that living mortgage free is the ultimate dream for most Australians. The truth is, however, that the majority of home owners in Australia have to spend 25+ years repaying the bank until they can make that dream a reality. The good news is that you don’t have to wait 25 years to pay off your mortgage. You can own your home outright much faster with some clever planning.

first home mortgage free

The hardest way to reduce the lifetime of your mortgage is to pay it back early by making larger payments out of your own pocket. Sounds good in theory but the trouble with this method is that it hurts. Most people don’t have that much spare income every month to clear the mortgage out of their salary. While it pays off your home faster, it also means compromising in other areas of your life to get it done.

Finance expert Leonie Fitzgerald from Wealthology is a property investment guru. Leonie has helped hundreds of Australians realise their financial dreams. Leonie reveals for us how easy it really can be to live the ultimate dream of being mortgage free and financially secure.

Mortgage Free in 3 Easy Steps

So, we are just going to come straight out and say it. You’re no doubt dying to know the secret to the easy way to pay off your mortgage. The best part is it’s much less painful on your finances and lifestyle. The secret is to use investment properties to pay your mortgage for you. Here’s how :

  1. 1.Using a relatively small cash deposit, you buy a rental property with a tailored mortgage package.

  2. 2.You rent the property out to tenants.

  3. 3.Every month the tenant pays their rent. That rent pays the mortgage on the investment property and leaves a small surplus that you can use towards the upkeep of the property.

If Australia’s property market continues to perform as it has, the home itself gains equity value as the market appreciates. Let’s assume that this equity appreciation was roughly 5% a year (a reasonable assumption based on history). Then you have an ever-growing sum that you can realise when you sell the investment property.

With the right formula, you should have enough profit to pay off your mortgage in just ten years! Thanks to the rent and the equity increases and assuming you buy an investment property of similar value to your own home. You will find that it would take roughly 10 years before you could sell the investment property and realise enough profit to pay off your mortgage.

Of course, at that point the big question will be, do you want to sell at all? You see by this time, you’ll have paid off a big chunk of the mortgage on the rental property. By then, your rental payments are going to be much higher than the mortgage payments. This means you could use the difference to start paying down the mortgage on your own home and continue to collect the equity gains on your investment property.

That’s right, you’ll be able to pay the mortgage off early and when you do – you’ll have two homes. One which continues to create income for you in perpetuity and another which you can live in without worrying about the bank’s share because you will have paid the mortgage off early.

To really uncover all of Wealthology’s property investment secrets, Download Your FREE E-book here.

 

Thanks to Leonie for her expert knowledge
Leonie Fitzgerald
Wealthology Founder & Investment Specialist

Phone: +61 (0)423 465 038
Email: hello@wealthology.com.au

 

Did you find this article about becoming mortgage free helpful? Here are some other articles about landlords, investing and purchasing property that other readers have found helpful :

We wish you all the best on your journey to becoming mortgage free.

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