Mortgages – How to Correctly Manage a Mortgage in Building a character …

Mortgages – How to Correctly Manage a Mortgage in Building a character …




What most don’t know and those who know won’t say, is 90% of the skill in building a character group is knowing how to manage mortgage finance. 90% of the skill in managing mortgage finance, is knowing how to effectively set up and manage a single mortgage , to grow 5,10,50, 100, 1000 similarities. There are two things that you will need to get going.

  • You own a character with a mortgage. Either you live in it or if you rent it its positively or nearly positively geared.
  • You have a surplus left over every month after you have paid off your commitments and living expenses.

There are two equities in a character. A information of advice. Don’t just jump past this and say that you know it. Very few people I have meet can truly describe precisely the two equity concepts. You will need a mortgage broker to assist you as they have the software and the calculators.

  • character equity
  • Mortgage equity.

character Equity is the difference between your mortgage value on the 30 year minimum payment curve and your value of the house. Mortgage equity is the value of the redraw. This is the value in your mortgage that you can take out due to increased repayments, over and above your minimum payment. You finance your purchases from your mortgage equity alone.

Does your current mortgage qualify as being useful to build an empire? Does it have…

  • Principal and Interest payment?
  • Can you switch it to fixed or variable automatically?
  • Can you divided up the mortgage into a number of accounts?
  • No fees for additional deposits and unlimited transactions?
  • No restrictions and no fee re-draw facility?
  • Can you choose principal and interest to interest only repayments in each divided?
  • Can you have 100% offset account in the future?
  • No monthly, annual or current fees?
  • Is the loan portable

Here are the steps. Concentrate on understanding the time of action loops. You can create your own set of numbers to do modeling.

course of action loop 1

  • Start by paying your surplus additional payments into your mortgage
  • You establish that you need $35,000 as a place for your first investment and it will take you 2yrs.6 months years to reduce your mortgage by $35,000.
  • In 2yrs 6 mths, redraw the $35,000 of mortgage equity from the mortgage and use this money as a place on a character
  • Buy your first character. Mortgage to 75% to 80% of value and the rent covers your payment and expenses AND gives you 20% of the rent to put into your mortgage as an additional payment. Very achievable but you need to research and probably buy out side the main metropolitan areas. (Tip: follow the commuter rail lines.)
  • Buy your second character. Mortgage to 75% to 80% of value and the rent covers your payment and expenses AND gives you 20% of the rent to put into your mortgage as another additional surplus payment. Very achievable but you need to research and probably buy outside of the main metropolitan areas. (Tip: follow the commuter rail lines.)
  • Your third character should take about two to three months less to acquire. Same with the fourth etc. Once it get moving, its a aim!

Three very important questions here.

  • After taking the $35,000 redraw mortgage equity out of your mortgage, did the monthly payment go up on that mortgage?
  • After taking the $35,000 redraw mortgage equity did, you increase to original mortgage value?
  • This gets everyone in a spin when I say this. Is the $35,000 free money?

Do course of action Loop 1. Over and over and over. Make sure you pay the rental surplus into the mortgage. This is absolutely vital and the meaningful to the whole program. If you want 3 houses great, if you want 300 great, if your want 3000 houses great. But the time of action won’t change. Its simple and its contained and it very dynamic when it gets going.

If you don’t have a stepped out circular course of action of character acquisition you will end up with a very loose structure and gaining finance will become progressively difficult.

  • Allow the rule of compound interest to work for you in your mortgage.
  • Develop a powerful belief and understanding in the strength and working of compound interest your mortgage

Take some action and get your mortgage set up so you can start the time of action of moving forward.




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