How you can pay off your bond in half the time AND build a property empire

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You'd think buying a new home would be a great investment, right? The thing with buying a home is that it's not really an investment at all. Its value might go up in a couple years' time, but there's a chance it won't. It doesn't give you an income - In fact, it's pretty much the opposite. You have to pay the bond, rates, taxes and maintain it every month. All this could empty your pockets. So what is your home then? Basically, it's a lifestyle asset. It gives you security. It can give you luxury. Over the years the increase in its value should counter the costs of living in it. But, there's a way to use your home to make you wealthier. Read on to find out...


Follow this rule and you'll begin building a property empire
 
What you need to do is to not go overboard when you buy a house. This mean you shouldn't go out and buy the most expensive house the bank will give you finance for. Instead, look for something affordable.
 
Banks should give you finance equivalent to about 35 times your monthly salary. And your monthly repayments should be about 30% of your salary.
 
So if you earn R30,000 a month, the bank should give you a bond of about R1 million. Your monthly repayment will be plus minus R9,000 over the next 20 years. And that's not even including the other expenses I mentioned such as maintenance and taxes.
 
If interest rates rise, it'll be even tougher on you. But if you use this secret I'm about to reveal you'll never have to worry about this.
 
How to pay off your bond in half the time
 
Instead of getting a bond that maxes out your credit, you should use a maximum of 20% of your salary for your bond repayment. So instead of paying R9,000 on R1 million bond, look for a more affordable house with a lower bond value. For example, on a R690,000 home, you'll only pay about R6,000 a month on your home loan. 
 
But here's where the secret trick comes in.
 
You pay the R3,000 difference (R9,000 – R6,000) into your bond now. And by doing this, you'll pay off your bond in 9.25 years instead of 20 years!
 
Then, with your home paid off you'll have an extra R9,000 in your bank account every month – even if your salary stays the same. 
 
Now, with that extra cash you accumulate, you'll buy another property. This time it's an investment because you rent it out.
 
Let's say you buy another R690,000 property called 'XYZ'. And you rent it out for R6,000 a month, which is equivalent to what you'd pay each month to cover the bond. 
 
With this R6,000 rental income plus the bonus R9,000 from your salary, you'll pay off XYZ in less than five years! In other words, using this method, you'll have two fully paid for properties in 15 years! So that means by using this method you would have two fully paid for properties instead of one that you would still be paying off.
 
Build your property empire today!
 
Using the secret method I showed you, you can easily build a property empire. You can simply keep repeating the process to build a collection of properties, and get the income from each one. 
 
One important thing to note is that for this to work, it takes discipline. From the start, you need to live within your means. And each time you collect the rent you must try as hard as possible to put the full amount towards the bond. 
 
Keep doing this and you'll see how quickly your property empire will rise!
 
Thrive in your possibilities,
 
Jonathan Bachrach
 
P.S. If you want to see more ways to grow your money you should take a look at my report "Start Poor Retire Rich."

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