YOUR BIG 3 FINANCIAL GOALS
Two decades ago I was in my 20's working as a financial planner. At that young age, I got a unique insight into the financial success and failure of everyday people who were much older than me. It was like having access to a time machine; being able to look into the future based on the real numbers of people in their 50's and 60's.
What I saw fundamentally changed the way I viewed the world of personal finance.
The fact was that most successful people owned investment property. With that property, they were able to achieve the BIG 3 Financial Goals of 1) Debt Freedom, 2) Setting up their Kids' Futures and 3) Setting up a Great Retirement.
Let me show you how these regular people were able to achieve this goal and how the same may be possible for you.
The best way to do that is to have you jump in that time machine…
Let's say 10 years ago, you purchased an investment property. Back then the average property value was around $500,000*. You would have needed just 20% down payment = $100,000. A major bank would have provided a mortgage for the 80% balance of $400,000. Let's assume the rent on the property covered the mortgage payment and other expenses.
Today, 10 years later, that property purchased for $500,000 is valued at $1,100,000+*. That is a $600,000 increase in value. But in addition to that increase, your rent received would have paid down your mortgage balance building another $100,000 in equity.
You'd now own an asset worth $1.1M with debt of only $300,000. That's a $700,000 increase in your Net Worth.
Now, let's say you sold that property today. Yes, you'd pay some selling costs and some tax, but you'd clear approx $500,000.
For many of you reading this, I would guess that you could take that $500,000 and pay off your family home. You'd be totally mortgage free... imagine that!
If you have kids, how does that $500,000 compare to the Registered Education Savings Plan (RESP) that you set up for them? Well I happen to know - it's about 400% MORE for your child. Because most RESP are lucky to create even $100,000 by maturity. (My two daughters - don’t have RESPs - they have houses.)
And if retirement is around the corner, how would you now feel about entering that stage in life with an extra $500,000?
I know what you are thinking right now.... “That time machine doesn’t exist and even if it did, 10 years ago I didn’t have access to $100,000!” I hear you loud and clear.
The good news is that, if you have owned your family home for more than 5 years, you likely do have access to that $100,000+ in home equity. And while we don’t have that time machine, you do have the ability to make decisions today that will fundamentally change the life you and your family will have a decade from now.
My team and I specialize in creating Personal Real Estate Plans (PREPs) for regular Canadian families just like yours. We've helped many achieve their BIG 3 Goals and helped make them millionaires. If you’d like to see how this kind of plan would work for you, contact us today.