20
$233,260
$67,115
10
$109,647
$190,728
Savings
4. Organise a budget
Ask yourself, What are your long-term plans? How do
you plan to achieve them? Just as acquiring a property
is a major commitment, then so is working out a plan to
achieve your financial goals. Without a plan, how would
you be able to get from point A to point B, from being a
borrower to being financially secure and free? Just as it
8. Understand equity
Equity is earned with every payment you make on your
home loan. This is the difference between the current
value of your property and the amount you owe your
lender. The more payments you make, the higher your
equity is.
But, you can also take advantage of this equity to borrow
money for other purposes such as other renovations on
your property. For example, you can use your equity as
collateral to borrow more funds to add another bedroom
in your home, retile the bathroom, or add a garage.
Once youve paid off your first loan, you can then revert
the Interest-only loan into the normal principal and interest
loan.
You can also pay off your loan quickly by having multiple
income streams. An additional source of income that
gives you the funds to pay off your loan wouldnt hurt. You
can use the earnings from one for your daily necessities,
and the other for simply paying off the mortgage on your
property.
GordonWealth.com.au