Now this is a question I’m often asked through my Property Coaching.
Here’s my take.
Ask your parents and they’ll probably tell you to take the ‘save’ route and throw everything you can at your mortgage – after all, it’s the great Australian dream to own your own home, watch your children grow up in it, and pay it off before retirement where you can live a comfortable ‘debt free’ life with no additional pressure. It’s been drilled into us.
Now, I’m all for throwing some additional funds to pay down your mortgage quicker – check out our extra mortgage repayments calculator to see how much you can safe on the lifetime of your loan. But the good news is you can have the best of both worlds!
Your focus however, needs to be in three key areas;
- Pay down your own mortgage (the house that you live in)
- Invest in solid assets for the long term
- Minimise the tax you pay so you can use this extra cash for lifestyle or further investing.
Paying down your mortgage is great (reducing your bad debt) but then releasing the equity back out for investing (good debt) will ensure you are focusing on all 3 key areas at the same time.
Furthermore if you do not own your own home and are currently renting, you can focus more heavily on the other two key areas to then purchase your dream home later on in life once you and your family know where you want to live. Commonly referred to as ‘rentvesting’
Feeling inspired? Or feeling uncomfortable? Property investing triggers all sorts of emotions from fear and uncertainty, to hope and excitement!
Give me a shout if this has triggered something in you or book in a Clarity Call with me, John Pidgeon.
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