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From Renter to Property Millionnaire

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Your Investment Property | 28 Sep 2017, 12:00 AM Agree 0
Half a dozen years ago, Harry Singh was renting and licking his wounds after losing his savings in the GFC. But with the help of the First Home Owner Grant, he is now worth over a million dollars – and is on his way to retiring by his 40th birthday. Jacqueline So reports.
  • Steve Aktipis | 17 Oct 2017, 07:59 AM Agree 0
    Well done Harry.
    Wishing you well in the future.
  • Ali Ayoubi | 18 Oct 2017, 06:08 PM Agree 0
    Well done Harry. When ur blessed with money don't forget the needy. God bless.
  • | 05 Nov 2017, 09:19 PM Agree 0
    Well done Harry god bless u .Your propeeties goes up in value thar awesome but i am trying to understand how this all thing work you have to pay mortgage dont you u ? How much you pay in mortgaug? And after paying mortage how much u get in your pocket?
    • Aaron | 17 Dec 2017, 01:14 AM Agree 0
      Hi, he will pay a mortgage yes, however his repayments will be offset by the rent he receives from his tenants, on top of this he will get some money back at tax time for any interest he paid on theses property's plus other property investment tax claim benifits. So while he most likely will have some "holding costs" the tenant and tax benifits will be covering maybe 2/3 of this amount. Now depending on his cash flow situation with his primary job etc, he could be affording to cover the remaining "holding costs" via having a line of credit loan, against the equity on one of his property's, this basically means the equity release on one property is covering the shortfall across all his property's... Now this "line of credit loan" will still also generate its own interest but when done correctly, with well situated High growth property's such as the ones in his portfolio the capital gains outweigh the interest amount in the line of credit loan and buy you time to service your investment loans until they mature enough over time, once this happens you could lower the Loan to value ratio on each property therefore having more "cash flow" coming into your bank account than monthly repayments amounts rewuired going out, essentially putting money in your back pocket. This is the end goal however and takes a reasonable size portfolio generally of around 10 million dollars plus.
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