Paying off our home is the number one financial goal for many, as we image the wonderful things we could be doing with the money we’re currently putting towards repayments...
Simple and practical mortgage-busting strategies are out there - from paying weekly rather than monthly, to finding a lower interest rate to easily afford extra repayments.
While it’s a great idea, it can give us a false sense of security. Once upon a time, paying off our home meant we’d made it financially. It’s just not the case anymore - an even bigger financial hurdle looms: funding our retirement.
We’re living much longer in retirement, and too many are retiring with nowhere near enough super. While it’s great not to have to pay a mortgage in retirement, our homes aren’t going to provide us with an income.
This is why millions of Australians have turned to property investing - to create real wealth for a more comfortable retirement.
1. Extra Income
Our investment properties will become more and more positively geared over time, because our rental income will gradually increase. Each property will provide us with a growing income, thanks to our tenant’s rent payments, and generous tax benefits.
This extra income can wisely be directed onto our home loan as extra repayments - wiping potentially years off our mortgage and saving huge amounts of interest.
2. Capital Growth
Remember, an investment property is completely different to our own home: we’re not going to live in it, and it’s only job is to grow in value and give us an income. However not all investment properties are equal - many inexperienced DIY property investors sadly end up buying the wrong property, in the wrong location, often with the wrong finance structure.
Getting help and support from independent property and finance experts who are actually on your side, is so important to getting it right, so we can create a more secure future, and eliminate our home loan years earlier.