Mortgage Elimination

We go one step further!  Instead of paying the rental income and the Negative Gearing to the investment property loan, you pay it to your home loan.  Doing this see your $250,000 home loan reduced to $0 in just 7 years, 4 months, instead of the original 25 years.  That’s a saving of 17½ years!  That’s huge!

So, let’s recap.  You have bought an investment property.  The bank lent you all the money.  You have redirected the rent and Negative Gearing from the investment property, paying it, instead, to your home loan.  In 7 years and 4 months your home loan is paid off…in 7 years, 4, months instead of 25 years!  

As we said earlier, the number one priority is to eliminate your home loan.  Your home loan is consumer debt.  (Remembering that home loans, car loans, personal loans, credit cards etc. are all bad debt.)

By now you are thinking, “Hang on, if I take all the income away from the investment property to pay off my home loan, how can I afford to keep the investment property??”

GOOD QUESTION!

This is where our facility comes into its own!  

Here’s part of the secret to the success of our facility. 

We setup for you a special bank funding account, from which you pay every conceivable cost associated with the investment property.  The loan payments, rates, insurance, agents fees, body corporate fees, repairs etc, etc, etc.  They are ALL paid from this special account.  That is why you do not have to fund from your own pocket the $269 per week shortfall on your investment property!  This happens until your home loan is paid off.

No more Home Loan!

Okay.  Your home loan is paid in full.  Now what? 

Well, you have two options. 

The first option is to keep the investment property.  If you do, you roll the original investment property loan and the special expense funding account into a single facility.  Then (with your own home loan paid in full), you pay the rental income and Negative Gearing on to the newly consolidated investment loan.

At that point in time, it will cost you (out of your pocket) $456 a week to keep the investment property.  That’s right!  $456 a week, and you now have TWO properties, not one.  

But!!! Your $426 a week payment towards your home loan will have stopped, because your home loan is gone.  Thus, the $456 you now have to find for the investment property every week is just $30 short of what you were previously paying to your home loan! 

The second option is to sell the investment property.  If you decide to sell the investment property, it is anticipated that the value of the property will have increased enough to not only eliminate the amount the bank lent you in the first place, but also the additional debt accumulated to cover the investment property costs.  So “if” the property value goes up far enough, and you sell it, you may be totally debt free after just 7 years, 4 months!

And how much extra has it cost you to own this investment property?  Absolutely Nothing!

So, you are debt free in less than eight years, and it has cost you absolutely NOTHING!  How good is that?!!

Click on the next topic to learn how we protect you if something goes wrong.