What’s the point of spending your whole life paying off your house to then only benefit from it when you’re too old to really enjoy life?
What about if I pay off your Mortgage in full?
Still not an asset. (Sorry!)
Even if you were to pay off your mortgage in full, your property still won’t provide you with an income therefore still not an asset!
In fact paying off your mortgage will just mean you’ve imprisoned a chunk of cash, although it means you would’ve saved the equivalent of your mortgage payment each month, you could have done so much more with that money!
You could have invested that same pot of cash to buy multiple properties that ‘just keeps on giving’ that not only will surpass the amount you was paying in your mortgage payment, but also replace your income, giving you Financial Freedom.
What about if I’ve already paid off my Mortgage in full?
A savvy investor would look to borrow money against the house at a low interest rate (currently you can borrow at ridiculously low interest,) then invest that money in income producing assets.
We need to live our best lives now, not wait until we retire. Or have to sell the thing we worked so hard to pay off to then sell to pay for care fees. We need to structure our finances in such a way that we invest in income producing assets they benefit us now.
'In the world of Money and Financial Education, Cashflow is the most important word. Cash is always flowing. It is either flowing in, or it is flowing out. For most people they work hard and the cashflow Flows out. True Financial Education trains you to have cash flowing in. Most uneducated investors invest for Capital Gains.'~ Robert Kiyosaki
An asset is something that puts money in your pocket immediately. A liability is something you owe someone elseThis isn’t a great investment right? How you can make your home more of an Asset?What’s an Asset, and what’s a Liability?
1/ Rent a room out
The government will allow you to rent a room out in your property to a lodger, the first £7500.00 is tax free. Therefore your property will be providing you with an income.2/ Live somewhere for Free
Rent out your house, move to cheaper area/ smaller house and use the cash flow from your house to pay for your rent somewhere else- your ex home would now be paying for your rent, so technically you’ll be living rent-free.3/ Borrow equity from your home
so you can invest in real income-producing assets. For me that’s property, I achieved Financial Freedom through Property in 18 months.So hope that’s given you food for thought.
I write this from Phuket , I consider it our second home now.
We’re currently travelling for 8 weeks around Thailand & Vietnam with the kids, so I’m working remotely on our property business and gearing up everything for when we return in September.
As much as I love relaxing and spending quality time with the kids here, I’m genuinely looking forward to getting stuck in the next project and next chapter of what we do. This is why I love property, as you can really make it work around your family. You can allow it to do that for you too, check out my Ultimate Property Roadmap to Financial Freedom.
