Being hit from both sides at once
It is a problem for most people that they live their whole life squashed into a tight financial corner. It’s an airless corner to live in. The so called “system” syphons away their money and lifeforce in two ways. It is usual for people to live their whole life with two blood sucking burdens 1) […]
This is Ridiculous
Just say you bought a $900,000 investment property and borrowed the full $900,000. Then never made a single payment and also put the rent in your pocket for 20 years. If the capital gain was 10% and the interest rate averaged 7%, the position after 20 years would be: Property value – $6.05MProperty Loan – would have grown/capitalized to $3.24M (In addition, the accumulated rent […]
WHAT IS THE BEST LOAN FOR A PROPERTY – INTEREST ONLY OR PRINCIPLE & INTEREST?
Regulators and some advisors have recently been pushing people towards “principle & interest” (P & I) loans rather than “interest only” (I.O.) loans. The theory and logic is that with a P & I loan, the loan gets paid down, whereas with an IO loan it stays the same. However, there is a lot more […]
There is Never a Perfect Time to Invest in Real Estate
To really get ahead, you need to make investing a priority. Most people wait for the world to be perfect before investing, and that time never comes. A wise man was speaking to a group of his students. He put a large jar on the table and carefully placed about 12 large rocks into the […]
Linear wealth creation and income growth versus Exponential wealth creation and income growth
Most people only grow their income and wealth in a linear manner. Their income only comes from the number of hours they spend at work. Their accumulated wealth only comes from saving up. The answer for some people is to find ways to increase the number of hours they spend at work and/or their value […]
The Magic of Compounding
This is key – and can painlessly grow anyone’s wealth and net worth to the top of the tree Renowned economist, banker, teacher, communicator, UNE alumnus Dr Don Stammer said this. Based on market indices and the reinvestment of any income flows: One dollar invested in Australian cash in 1900 would today be worth around $259. If one dollar […]
DON’T PROCRASTINATE
“Action actually cures fear”. Inaction does not prevent or avoid fear – it multiplies fear. “Fear is the prison of the heart” – Anonymous. Most Australians well know that they don’t have enough to retire on. And most of them don’t know what to do about it. One thing is for sure – you have […]