simonstanley
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- Sep 3, 2013
- 15
- 23
For any millennials, or in fact anyone starting to do well in their career / business and wants to buy a property to live in, with a burning desire to become wealthy financially + spiritually for the long term. Thought I'd share my findings with you. Would love to hear if anyone disagrees / agrees with my research here.
Recently I've been researching a "base" to set up in the UK. My family and friends are here, so it'd be great to have a place to stay when I'm in the country. I love spending time in multiple destinations, it's one of my passions, but figured it'd be nice sometime soon to have something nice to call "home" rather than being dependant on other people for a place to stay.
It really is so tempting to use ALL of the mortgage amount the banks would give me based on my accounts. Maybe even in a more exclusive location / or the hustle+bustle which I love. But here's the difference I believe of someone that perceives as their property as an investment, and someone that looks at with an entrepreneurial eye, looking at their property as security, the structure they need to grow wealth by other means.
If you do what most people do, you'll achieve the same results as most people. The typical guy or gal will lock all of their income up in paying off a a mortgage.
Lets say that mortgage amount is $200k over 30 years.
Your repayments may be something like £1,000/month. After maintenance/repairs/other costs. Say monthly your cost is £1,100 (minimum most likely).
That's not even taking into account if / when interest rates rise. Which people don't account for). If you're running an online business, you have expenses there too, and caused yourself as a startup to have no manoeuvre money, to ultimately grow an explosive income business.
On the other hand, what if you took HALF the mortgage that the banks would give you... How would that figure?
Let's you bought a place and got a mortgage for £100k. As consider it your ultra fail safe to work from. Remember your business expenses pile up too as you become more successful. Whether it be staff/software/technology costs.
Monthly repayments may be around £480/month.
You could use the £500/monthly extra cash flow to invest in income producing vehicles. Maybe the £500/month could rent a video studio / office space in that location to grow the biz / increase productivity.
That's the difference right there I believe, and I believe the trap the society tried to put us in.
Someone that looks as their home as an investment would lock all of their income up and max everything out, eventually pay off the house 30 years later and wonder why they aren't wealthy. Their only means of wealth is the equity in their home.
The guy/girl who took half the mortgage, invested the cash flow to bring in more income, and maybe then used that new income to pay off the entire mortgage early in 5 years, has no monthly payments eventually becomes a multi millionaire.
Ultimate leverage for future success right there. That one decision could be the difference of someone living / feeling poor & trapped in "the system" for the rest of their lives, and someone who passes a legacy for generations to come.
These are my thoughts, just thought I'd pass this on.
Recently I've been researching a "base" to set up in the UK. My family and friends are here, so it'd be great to have a place to stay when I'm in the country. I love spending time in multiple destinations, it's one of my passions, but figured it'd be nice sometime soon to have something nice to call "home" rather than being dependant on other people for a place to stay.
It really is so tempting to use ALL of the mortgage amount the banks would give me based on my accounts. Maybe even in a more exclusive location / or the hustle+bustle which I love. But here's the difference I believe of someone that perceives as their property as an investment, and someone that looks at with an entrepreneurial eye, looking at their property as security, the structure they need to grow wealth by other means.
If you do what most people do, you'll achieve the same results as most people. The typical guy or gal will lock all of their income up in paying off a a mortgage.
Lets say that mortgage amount is $200k over 30 years.
Your repayments may be something like £1,000/month. After maintenance/repairs/other costs. Say monthly your cost is £1,100 (minimum most likely).
That's not even taking into account if / when interest rates rise. Which people don't account for). If you're running an online business, you have expenses there too, and caused yourself as a startup to have no manoeuvre money, to ultimately grow an explosive income business.
On the other hand, what if you took HALF the mortgage that the banks would give you... How would that figure?
Let's you bought a place and got a mortgage for £100k. As consider it your ultra fail safe to work from. Remember your business expenses pile up too as you become more successful. Whether it be staff/software/technology costs.
Monthly repayments may be around £480/month.
You could use the £500/monthly extra cash flow to invest in income producing vehicles. Maybe the £500/month could rent a video studio / office space in that location to grow the biz / increase productivity.
That's the difference right there I believe, and I believe the trap the society tried to put us in.
Someone that looks as their home as an investment would lock all of their income up and max everything out, eventually pay off the house 30 years later and wonder why they aren't wealthy. Their only means of wealth is the equity in their home.
The guy/girl who took half the mortgage, invested the cash flow to bring in more income, and maybe then used that new income to pay off the entire mortgage early in 5 years, has no monthly payments eventually becomes a multi millionaire.
Ultimate leverage for future success right there. That one decision could be the difference of someone living / feeling poor & trapped in "the system" for the rest of their lives, and someone who passes a legacy for generations to come.
These are my thoughts, just thought I'd pass this on.
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