Invest In Property To Pay Off Your Home Loan Faster

shutterstock image

Want to know a secret the banks don’t want you to know? It’s about your home loan.

Slash Your Home Loan & Fast-Track Financial Freedom with Property Investing

Here’s the blunt truth about your home loan: you’re paying it back with money you’ve already paid tax on. This makes it incredibly inefficient from a tax perspective and locks you into decades of repayments, lining the banks’ pockets with astronomical interest.

Did you know a $500,000 home loan over 30 years at 5.99% interest could cost you approximately $578,034 in interest alone? You’re essentially paying back double what you borrowed! It’s a goldmine for banks, but a drain on your wealth. That’s why, for many, paying off your home loan faster isn’t just a good idea—it’s a financial imperative.

A core principle of smart money management is to prioritize paying off non-tax-deductible debt first, saving your tax-deductible debt for later.

How the Right Investment Property Can Transform Your Home Loan Repayments

Imagine if your investment property didn’t just grow in value but also actively helped you conquer your home loan. The right investment property—one with strong depreciation benefits and excellent rental returns in a high-demand area—can generate a surplus cash flow. We’re talking anywhere from $100 to $400 per week!

Instead of directing this positive cash flow towards your investment loan, you could funnel it directly into your non-tax-deductible home loan. This strategic move could shave years off your mortgage and keep hundreds of thousands of dollars in your pocket instead of the bank’s.

Let’s look at the incredible impact:

  • Accelerated Freedom (High-End): An extra $400 per week could reduce that $500,000 loan from 30 years down to just 13 years and 7 months! Your interest payments would plummet from $578,034 to a mere $211,305. What would an extra $366,729 mean for your life? Imagine getting back over 16 years of your life from mortgage slavery!
  • Significant Savings (Low-End): Even an additional $100 per week could cut your 30-year loan to 21 years and 10 months, reducing your interest from $578,034 to $394,844. That’s an extra $183,190 in your pocket and over 8 years of your life returned!
The Ultimate Payoff: Capital Growth

Beyond consistent cash flow, there’s another powerful weapon in your arsenal: capital growth. The value appreciation of your investment property can be a game-changer for your home loan.

Consider this: A $675,900 property held for 10 years on an interest-only loan, experiencing just 3% average annual growth, could swell in value to $908,353. This gives you an incredible $300,043 in equity. Even after accounting for Capital Gains Tax (CGT), sales agent fees, and solicitor costs, you could be left with approximately $199,937. Could a windfall like that pay off your home loan entirely, setting you up for a truly comfortable retirement? Absolutely.

The Key Takeaway: Unlock Your Future

cash flow positive investment property is more than just an asset; it’s a powerful tool to pay down your non-tax-deductible home loan significantly faster than you ever thought possible. The upside is twofold: not only do you save years and potentially hundreds of thousands in interest, but the right investment property, chosen with solid fundamentals, will also grow in value over time, providing you with a substantial financial boost for retirement.

 

Ready to stop making the banks rich and start building your own financial freedom?

 

DISCLAIMER – ANY INFORMATION ABOVE IS GENERAL IN NATURE AND DOES NOT ACCOUNT FOR YOUR PERSONAL FINANCES OR CIRCUMSTANCES. PROFESSIONAL ADVICE SHOULD BE SOUGHT FROM AN INDEPENDENT TAXATION OR FINANCIAL ADVISOR. PANVEST PROPERTY ARE NOT TAXATION OR FINANCIAL ADVISORS, BUT CAN REFER YOU TO INDEPENDENT TAXATION & FINANCIAL ADVISORS.

Book A Quick Chat To Learn More

    Where did you hear about us?

    Do you have $105K in Cash &/Or Equity?

    YesNo

    Having at least $105K in Cash &/or Equity allows you to purchase property from approx. $750k, assuming a 10% deposit, stamp duty, LMI, legals etc.