What if I already have a Mortgage?

Your home is most likely worth a great deal more than your mortgage. Your mortgage is not a problem, but instead an opportunity and a tool to accumulate investment property.
Most people don’t realise their own home is considered “Equity”, even if it’s not fully paid off. You use your equity to raise the finance to purchase one or more investment properties - including all the usual start-up costs such as conveyancing fees and stamp duty.

Banks view median-priced property as a good investment and willingly provide financing for it. It is essential to investigate your mortgage options. There are great advantages to Interest-Only (IO) mortgages, particularly to property investors. The weekly outgoings are less than their Principal & Interest (P & I) mortgage counterparts.

Every year the value of your property grows as the relative value of the principal shrinks. A house bought for $8,500 in 1960 was worth $450 000 in 2007. The principal debt is insignificant in terms of today’s values. Contrary to popular wisdom, the best time to pay off the principal is later rather than earlier.

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