In order for you to be able to purchase a 500 thousand dollar property, you need to have 100 thousand dollars down payment. If you are able to secure this one property, and rent it out, and hold on to it for the next 30 years, you will have an asset that is worth over 1.3 million dollars.
If you follow even the standard amortization schedule, you will have the mortgage on this property paid down within this time frame as well. And that 100 thousand dollars that you invested, will turn into over 1.3 million. And, if you sell this property, in 30 years, after real estate commissions and fees, you will walk away with over 1 million dollars. – How to Retire Early and Retire with Wealth
Do You Have Enough Money For Retirement?
Good question right? Many of us have not even really considered this – and the number one reason why we don’t like to think about or talk about it? At least in the conversations that we’ve had with our clients, it is because we don’t like the answer.
The truth is, we can’t rely on the Government for our retirement, that has already been proven over the last several decades. As a population, we are living longer, and rates of return on pensions are going down. And many of us, we don’t even have a pension….I know that I don’t. CPP is not going to be enough.
Tuition for college and university is more expensive, and going up, the younger generation are coming out of university with larger student loans, saddled with debt. They are starting from behind, and in many cases, are not able to buy their first home until much later, they are getting married later, having kids later. And therefore, they are renting for longer.
There is therefore a big opportunity in the investment property market. To take an analogy from my favorite sport and its greatest player, Wayne Gretzky “you want to go to where the puck is going, not where it is”.
Now, what does this have to do with retirement? Well, our One Property Away seminar goes into it in more detail, but if you own your own home, it is quite likely that you are sitting on quite a bit of dead equity in it.
How Much Money Do You Need To Retire Comfortably
In order for you to be able to purchase a 500 thousand dollar property, you need to have 100 thousand dollars down payment. If you are able to secure this one property, and rent it out, and hold on to it for the next 30 years, you will have an asset that is worth over 1.3 million dollars. If you follow even the standard amortization schedule, you will have the mortgage on this property paid down within this time frame as well. And that 100 thousand dollars that you invested, will turn into over 1.3 million. And, if you sell this property, in 30 years, after real estate commissions and fees, you will walk away with over 1 million dollars.
This is very realistic. You see over the last 60 years, in our market, properties have increased in value year over year by about 5% per year and the above calculations and numbers are based on projections. They are not made up out of thin air, but rather they are realistic and attainable.
The one issue that you might be thinking is that “if only I had 30 years to wait”. The fact is that most of you reading this are not 30 years old or younger. In fact, many of you are in your 40s, 50s and even approaching your 60s, and that is fairly typical. You see, as we start to realize that we are not getting any younger, we start taking note of the finish line.
How Much To Save For Retirement By Age
You have done everything that you were told as a child, by your parents, and by your financial planner as an adult. You worked on your savings, and you have not lived an extravagant lifestyle, and yet you look up and you realize that if you continue to do what you have been doing, you are going to fall short. Now retirement, it is not necessarily when you “can’t work anymore” but rather it is when you “don’t have to work anymore”.
Now, how many of us, would have liked to have purchased another home on the street that we live on currently? It is most likely that back then you simply were not able to, but right now, you may have the ability to purchase another property.
And while you may not have the luxury of waiting 30 years, you may have 10 or 15 years – you can accomplish virtually the same thing in this time frame. Instead of buying the one property, you may be able to buy 2 or 3 and have the same net effect.
This is what many of our clients are doing, and this is what you can do too. If you are interested in learning more, visit https://themortgagespecialist.com/onepropertyaway, or set up a time for a free, no obligation consultation.
