My Property Investment Tip #20

My Property Investment Tip #20
Time Makes Debt Irrelevant.
Now this one is a more difficult one for some to get their head around. But time will effectively pay off your debt for you…
Yeah ok crazy man you’re thinking, but it’s true.
In 1970 in Brisbane, you could buy the average home for $8,500. But the average salary was only about $2000 per year.
But you can guarantee that the young couple buying that property were just as intimidated then by the prospect of paying off an $8000 mortgage, as a young couple is today of paying off a $500,000 mortgage.
In their mind they were probably thinking “It’s going to take us forever to pay this thing off!”
But now, 50 years later they’re in retirement, and they’re saying… “the best thing we ever did was buy that house in 1970 and hang on to it”.
….And if they still had that $8000 mortgage, they wouldn’t care…. because time has made that mortgage irrelevant.
This is the beauty of investment properties. Because they will generate income forever, they can service debt forever. And as time goes by, even without paying off that debt, it will feel like less and less of a burden, as the rents increase and the value goes up relevant to the debt amount.
Believe me, in 50 years from now, $500K will feel like $8K does today.
This is also why investors elect to go with interest-only loans. It’s much better to focus your efforts on acquiring more income & wealth creating assets with your spare cash, than it is to pay off the ones you already have (that don’t actually need to be paid off)
Does that make sense?
Let me know your thoughts below
– Daimo

Want to learn more about how property investing can secure your financial future?

Click below and gain access to a FREE webinar.

Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.  

Previous Post
My Property Investment Tip #19
Next Post
My Property Investment Tip #21, #22, #23 & #24

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed

Legal Disclaimer: This information ('the information') is presented for illustrative and educational purposes only. It is not presented nor should it be treated as real estate advice, legal advice, investment advice, or tax advice. All investments involve risk and potential loss of money. If you require advice in any of these fields you should contact a suitably qualified professional to assist and advise you. Your personal individual financial circumstances must be taken into account before you make any investment decision. We urge you to do this in conjunction with a suitably qualified professional. Daimien Patterson, IntegrityX Enterprises Pty Ltd, and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers do not guarantee your past, present or future investment results whether based on this information or otherwise. Daimien Patterson, IntegrityX Enterprises Pty Ltd and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers disclaim all liability for your purchase decisions. You should do your own independent due diligence and seek the advice of qualified advisors before making any investment decision.