$327,000 MORTGAGE PAID OF IN 10.2 YEARS

Single Male in his early 20's.

BEFORE

HOME LOAN - $327,354 INTEREST RATE – 5%

PROJECTED TERM– 28 Years

PROJECTED INTEREST-$281,527 TOTAL COST- $608,881

PERSONAL LOAN- $8500 PROJECTED INTEREST-$4831

TOTAL COST-$13,331

CAR LOAN - $40,000 PROJECTED INTEREST- $6,924

TOTAL COST- $46,924

RECOMMENDATIONS

CONSOLODATE ALL DEBT INTO MORTGAGE TO SAVE ON INTEREST AND TO HAVE HIS INCOME WORKING AT ITS MAXIMUM POTENTIAL.

REFINANCE WITH EITHER BANKWEST AT A 3.99% VARIABLE RATE OR MEMBERS EQUITY AT A 4% INTEREST RATE.

INVESTMENT PROPERTY IN BETWEEN YEAR 2 AND 3 FOR TAX MINIMIZATION AND DEBT REDUCTION ON YOUR PRIMARY PLACE OF RESIDENCE. AN INVESTMENT PROPERTY ALSO ADDS TO HIS RETIREMENT POOL GIVING HIM ANOTHER INCOME STREAM IN RETIREMENT AS WELL AS YOUR SUPERANNUATION.

AT THE END OF YEAR 3 HE WILL HAVE ROUGHLY $316,684 OUTSTANDING WHICH GIVES HIM THE OPTION OF PURCHASING AN INVESTMENT PROPERTY USING YOUR EQUITY. PURCHASING AN INVESTMENT PROPERTY AT THAT STAGE WILL HELP YOU REDUCE YOUR DOMESTIC MORTGAGE AND YOU SHOULD SAVE AROUND $160 IN TAX PER WEEK. PPOR WILL BE WORTH APPROXIMATELY $460,000

INVESTMENT PROPERTY ESTIMATES/GOALS

PURCHASE PRICE $450,000

RENT $460 PER WEEK

TAX DEDUCTIONS $160 PER WEEK

INTEREST ONLY MORTGAGE REPAYMENTS - $1750 PER MONTH

ESTIMATED OUTCOMES.

DEBT FREE HOME IN 10.2 YEARS

SAVING 17.8 YEARS OF THE TERM OF THE LOAN ON PRIMARY PLACE OF RESIDENCE AND $209,915 IN INTEREST

HOME OWNERSHIP IN HIS EARLY 30'S


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