 The
first step is to buy an investment property for
these reasons
a) It will cause you to pay much less tax.
b) It will help you get rid of
the non-deductible home loan faster.
c) It goes up in value over time.
d) Costs nothing out of your own
pocket.
• The investment property gives two
sources of income in this case. The clear rent
($1104/ month after agents fees) and the tax saving
($630/ month - this is real money you get to keep
in your pocket each pay day).
• It's madness in business
to ever apply any money to tax deductible investment
loans while you still have a non deductible home
loan. All possible funds should go towards the
home loan until it's paid off in full, meanwhile
making no payment on the investment loan.
• There is now 3 sources
of income at our disposal. The money we now have
at our disposal is:
| PREVIOUS HOME PAYMENT
|
$1208/
month |
| CLEAR RENT |
$1104/
month |
| TAX SAVING |
$630/
month |
| TOTAL |
$2942/
month |
• If you now pay the
whole $2942/ month off the home
loan, it will be paid off in 4 years and 9 months
instead of 18 years. But it never goes this slow
because of step 2 (see next).
• This is done without putting more
out of your pocket than your present home loan
payment
• Using our system, it should be unnecessary
to even contribute the old $1208/ month payment
after a few years.
WHAT'S
STEP 2?
|
