Real estate retirement planning is easy to do when done right.
May I ask you… Have you ever been on vacation and realized that there are basically two types of vacationers?
The first type is similar to what I was years ago:
The person who watches where the money is spent and counts down the holidays from day one before going back to work.
Do you do that too?
I did and it was driving me crazy, just as I was starting to enjoy my vacation it was time to get back to work.
Now the other type of person is the one who goes on vacation without knowing what they’re spending or how long the vacation will be, with the flexibility to change
making plans on a whim (e.g. spontaneously deciding to go to another vacation spot).
Why can’t we all be like this?
Wouldn’t you agree that we deserve to live this lifestyle if we’ve worked all our lives? We deserve to enjoy our golden years by doing the things we want to do and being financially secure enough to live life to the fullest.
We can, but you have to set it up.
Please keep that in mind too
Real estate investing is NOT a get rich program
That means you need to start building now and not tomorrow, as we all know that we procrastinate and knowingly kick ourselves after a year or two that we didn’t take the step when we thought about it.
I remember in the early 80’s when I started as an apprentice car mechanic there were some older people who were retiring and they all said how happy they were to be retiring.
Do you remember the big thing in the early years
Everyone used to get “The Golden Watch”
But, you know what? No one even considered what actually happened to these retirees, their cash flow would decrease as they retired.
Most people work their entire lives, sometimes starting as young as 15 and working until age 65 (a working lifespan of 50 years).
By the time people reach retirement age, their home has usually been paid off, they have raised and raised their children, and done everything in their power to provide for the family.
But oddly enough, if we look at the figures from the Australian Bureau of Statistics after all of this:
86.6% of Australians retiring at age 65 will be living on an income stream of less than $16,000 a year!
That’s only $320 a week to run the house, pay all the bills, buy gifts for the grandkids, buy clothes, etc. I know it’s nowhere near enough to lead a decent lifestyle – my mother (72 years old) experiences it every day.
So how do we work all our lives and yet survive on so little money?
Simply because we are only taught how to get a job, pay our taxes, buy a house, raise a family and that’s it.
No one ever said, “Wait, you better start working smart and plan something for retirement and start committing to the future!”
How can we change all this?
How do we start working smart so that we can be financially secure with a steady income and retire freely, or alternatively become financially independent early on?
What I am going to show you has been used by the wealthy and other people in the real estate field for many years. It’s really nothing new
Did you know that investors use their investment property to pay for their children’s schooling using this method that I’ll share with you in a moment?
Like my daughter Gyorgem, I let Investment Properties pay for her private school education.
First – I’ll tell you how it is: if you have a home loan with a line of credit (LOC), couldn’t you use the loan to buy cars, vacations, etc. directly from the LOC?
But it’s YOUR house and you’d rather pay it off as soon as possible than increase the loan, right?
Now what if you had a real estate investment portfolio of around a million dollars? Let me tell you, in today’s values it’s not hard at all, a million dollars real estate investment really isn’t that much, once you make your first investment the second is not far away.
So, hypothetically, if your portfolio grows at 7% per year, that means you have about $70,000 in equity growth per year, right?
I’ll also tell you, as you probably know, real estate doesn’t go up at a straight angle, but if we look at it over years, it’s average capital growth.
Then why can’t we borrow that from the bank and use it in our lifestyle? And if we borrow money from the bank, it’s not income, so we pay taxes on it?
No! Because it’s TAX FREE! It’s a LOAN, not an income!
Are we now starting to work smarter, not harder?
This is theoretical because we all know real estate doesn’t go up
7% every year. It can go up 15% in a year and over the next few years
Years may be flat, but on average if we look at it over the long term, property has stood the test of time.
Keep in mind that this method also depends on how much you owe the bank (rent yield plus utilities). But if you hold property for the long term, this is very possible and easy to achieve.
In my personal appointments, I’ll go into this and show you how it’s all possible, even for someone on a small income, but remember you have to put in equity. If you don’t have a home, you can use someone else’s home for a few years until the equity investment has grown, and then you can release the collateral ownership.
My oldest client was 64 years old and self-employed when he bought his first investment property. So never say you are too old or that it is too late.
Like I said before, we can never replace time.
So many people just waste time finding excuses to put their financial wealth aside or save it for another day that sadly never comes.
Did you know that we spend more time writing a purchase?
List or plan a two week vacation as for our entire future?
Isn’t that a shame?
Think about it and make the decision to work on your future now, right now. Figure out what you want and need so that by the time you retire you have something to help you, because real estate retirement planning will help get you there if you do it right.
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I wish you much success,
Dino F Livanidis,