Invest
How to pay off your mortgage in 10 years
Investors looking to get out of debt sooner and start creating wealth for themselves have been advised they can pay off their home loan in 10 years through smart property strategies.
How to pay off your mortgage in 10 years
Investors looking to get out of debt sooner and start creating wealth for themselves have been advised they can pay off their home loan in 10 years through smart property strategies.
During an OpenCorp wealth creation workshop, OpenCorp director Michael Beresford explained how through the magic of compounding returns on properties a mortgage holder can get out of debt in a third of the time.
“There are two ways you can do that in 10 years and not 30. The first way is to throw a bucket load of cash flow and sacrifice your lifestyle to pay off the mortgage as quickly as possible,” Mr Beresford said.
“Understanding compound growth is a much smarter way to pay the mortgage off.”
He explained that investors who are looking to get ahead can use the equity in the family home to purchase two investment properties.
With the rules of compound interest, growth on the property would see it likely double within a 12-year period.
“What we do is we hold the two investment [properties] for a 10-year period. It might be nine, it might be 12 years, but the properties will double,” Mr Beresford said.
Using the example of all three properties being worth $500,000, the property investor explains that once the investment properties have doubled to a combined value of $2,000,000, an investor can simply sell, pay the capital gains tax and use the remaining money to pay off all debts.
“If having your own home paid off is one of your goals, this a far more effective way to do it in a much shorter time frame,” Mr Beresford said.
“Acquiring low cost to hold investment properties to give us compound growth over time. All we are doing is real wealth creation through compound growth.”
The property adviser explained that investors do not need a large portfolio to be successful at wealth creation, instead they simply need to hold for a longer period of time.
“It’s not getting rich quick, it’s not bitcoin, it’s everyone jumping on board something, it’s not how we get success,” Mr Beresford said.
“What people don’t understand with compound growth, regardless of where you sell it, you make the same amount in the next unit of time as what you made since the start. Buy and hold long term.”
About the author
About the author
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more
Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more
Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more
Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more
Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
