We all wish to owe as little on the family home as possible.
I fully appreciate that many of us feel doubtful about property investment when there is a large debt on the family home.
How would you feel if we provided an investment proposal focused on debt reduction?
Our 5 Step Process provides, from the end of year one, at least $150,000 equity uplift which can be immediately used to reduce the debt on the family home.
Steps 2 through 5 are optional, carried out over 6 years, accumulating equity uplift of at least $150,000 at each step. The investor has the option of using all or part of the equity available to pay down debt, however we recommend that the investor retains at least 50% of the accrued equity, after step 2, to pay CGT if the properties are sold.
Note: If the process is repeated once, the investor has reduced the home mortgage by at least $200,000 in less than 3 years, still retaining the major portion of the equity to pay the deposit and costs for the next step if he/she wishes to proceed further.
The saving on interest through using the equity uplift gained in steps 1 and 2 to reduce home debt may compensate for CGT payable at the time of sale of any or all properties.
All of this through intelligent use of compound growth and leverage to bypass market conditions.
It is currently not possible for an SMSF to invest in the 5 steps process due to single contract requirements where the builder carries all costs including legal, stamp duty, interest charges throughout the build to completion.
We hope to rectify this soon as there is no CGT if the properties are sold during the pension phase in an SMSF.
Watch our briefings in Property Investment Forum and ‘Investors’ Choice’ for more on this…
Get the full details and the investment analysis for discussion with your accountant.
Click here to schedule an appointment or call us on 1300680323.