Our 5 step process to multimillion dollar property portfolios is very much alive and functioning.
We designed this program initially for a baby boomer client who had not planned for retirement and found himself alarmingly short of what is needed to finance a comfortable retirement.
He had around $450000 in superannuation plus some shares and savings amounting to around $150000 with 8 years to go before retirement. The best he could hope for was around $700000. His wife had never worked since they were married.
He accepted that he needed at least $2000000 without the family home to finance the life style they wished to maintain – a comfortable retirement as described by the Federal Government as “‘Enabling an older, healthy retiree to be involved in a broad range of leisure and recreational activities.
- To have a good standard of living through the purchase of such things as household goods, private health insurance, a reasonable car, comfortable clothes, a range of electronic equipment and domestic and occasionally international holiday travel.’
- Source: ASFA March 2014.
The Federal Treasurer quoted an amount of $75000 per year after tax as the minimum amount required to live comfortably requiring a capital sum of no less than $1500000 without the family home.
Our client has reached step two with an equity uplift exceeding $250000, more than enough to pay a 10% deposit and purchase costs for the second duplex without having to raise any cash.
If interest rates stay under 7.25% he will not have to raise any cash for repayment of interest over the seven year period and may start paying principle as well on the first duplex. With current interest rates there is a substantial after tax positive cash flow.
Whilst there are options at every step he has stayed with the process and will have at least $500000 in additional equity in 18 months time when he will purchase his third duplex.
At his age he has been given a lifesaver and subject to him maintaining the discipline required by the 5 step process he will retire very comfortably.
TURN $100000 INTO $1,800,000 IN EQUITY AND A PROPERTY PORTFOLIO EXCEEDING $6,000,000 IN LESS THAN 7 YEARS
Don Duncan F.A.I.M.
Don is the Principal Consultant at Mediwealth Australia, with over forty years experience in developing successful residential property investment strategies, and extensive experience in the financial sector, Don is uniquely qualified to provide you with the best property investment advice available. He is supported by experienced property investment consultants in both Brisbane and Sydney.