Having a family home paid off is great but to unlock that equity and use it to create more wealth, is dynamic. If, like Chris and Sarah, you want to learn how to create wealth & secure your retirement, chat now to Vizion Group and get your roadmap to property success.
Why Work With Vizion Group Qld
Chris and Sarah’s Story
When Chris & Sarah’s eldest daughter graduated high school, the reality hit them that very soon the first of their 3 children would be leaving the nest and it was highly possible they may need to financially assist their children to get the kick start every parent wants for their child. Of course, this conversation then turned to retirement and ultimately the question of whether they were saving enough money. Chris and Sarah had almost paid off their mortgage and with additional savings from Chris’s job, they were financially stable. Their family home was worth in excess of $500,000 but they had never considered using this equity to increase their property portfolio.
After much research, they realised that wealthy people were creating more wealth by tapping into the equity in their existing properties. They realised that they needed to treat their home and personal finances as if they were a business, utilising capital and the equity in their home as a deposit on an investment.
Chris and Sarah were still risk adverse and so created a safe plan to unlock the equity in their home and fully utilise the difference between what they owed and what their property was worth. By spreading their property’s equity, they discovered they were in a position to purchase two duplexes. Their rental income would more than cover the mortgage and the properties would appreciate in value.
With plenty of equity in their home, it was easy for Chris and Sarah to invest in additional properties. That and the fact that they still had many years until retirement meant they had the opportunity to keep adding to their portfolio. The two duplexes they purchased were strata titled so in no time at all they increased in value & again equity was created. Now they had choices. They could use this equity to purchase more property, until such time that they decided to sell off some of their investments, pay down what was owing and let the rental income contribute towards their retirement or they could simply continue to create wealth. It gave them the opportunity to assist their children and help them with that head start.