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The Power of Gearing Exponential Growth

€ 100.000 investment property…. The Power of Gearing Exponential Growth. 80% Mortgage. 20% Deposit. The Mortgage remains the same throughout…. The Power of Gearing Exponential Growth. …and you benefit from all the increase in equity value. Equity growth in value. € 80.000 Mortgage.

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The Power of Gearing Exponential Growth

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  1. €100.000 investment property…. The Power of GearingExponential Growth 80% Mortgage 20% Deposit

  2. The Mortgage remains the same throughout…. The Power of GearingExponential Growth …and you benefit from all the increase in equity value Equity growth in value €80.000 Mortgage €20.000 Deposit

  3. Each year assuming a €100.000 property grows in value by 5%… The Power of GearingExponential Growth Ten Year growth: ??????? Five Year growth: €27.628 Four Year growth: €21.550 Three Year growth: €15.762 Two Year growth: €10.250 €80.000 Mortgage Year One growth: €5.000 €20.000 Deposit For Illustration Purposes Only the Figures are Based on 5% Annual Growth

  4. How does this translate into real money? The Power of GearingExponential Growth With a €100.000 investment property… Deposit of €20.000 Compounded (exponential) growth in value Mortgage of €80.000 Growth rate of just 5% 80% Mortgage Net compounded Growth after 10 years of €62.889 20% Deposit

  5. Compare this to a long term savings account at 5% interest The Power of GearingExponential Growth Capital of €20.000 in a savings account Compounded Growth after 10 years of €12.577 Capital of €20.000 in an investment property Compounded Growth after 10 years of €62.889 Which would you prefer?

  6. Imagine you buy an investment property…. Leveraging Your Money €100.000 Investment

  7. Leveraging Your Money How does this translate into real money? With a €100.000 investment property… Compounded (exponential) growth in value Growth rate of just 5% Net compounded Growth after 10 years of €62.889 €100.000 Investment

  8. Property 2 €100,000 Property 5 €100,000 Property 4 €100,000 Property 1 €100,000 Property 3 €100,000 Deposit €20,000 Passive Income €200 p.m. Deposit €20,000 Passive Income €200 p.m. Deposit €20,000 Passive Income €200 p.m. Deposit €20,000 Passive Income €200 p.m. Deposit €20,000 Passive Income €200 p.m. Leveraging Your Money Savings €100,000 €1,000 monthly passive income

  9. Leveraging Your Money €100.000 €100.000 €100.000 €100.000 €100.000 €20k €20k €20k €20k €20k €500.000 Total Property PortfolioValue

  10. So if you invested in 5 properties instead of just one property… Leveraging Your Money 5 x Deposits of €20.000 Growth rate of 5% Compounded Growth after 10 years of: €62.889 x 5 €314.447

  11. Your Property Investment at average growth over 10 years at 5% would give you an extra (€62.889 x 5 properties divided by 10 years) €31.444 per year PLUS €12.000 Yearly Passive Income Leveraging Your Money €43.444 per year For Illustration Purposes Only the Figures are Based on 5% Annual Growth

  12. Built in Equity - BMV Property Price €385.000 Agreed Purchase Price €311.000 Discount Negotiated € 74.000 Plus associated costs: Deposit of 15% required €57.750 Taxes €11.550 Legal Fees € 1.000 Broker Fee € 1.700 Total Costs €72.000 MONEY IN YOUR POCKET ON COMPLETION € 2.000 PLUS BUILT IN EQUITY OF €57.750

  13. Passive Income Monthly Income of 6 Rented Rooms 5 @ €125 per week €2.708pcm Costs: Monthly Mortgage Payment at 5% €1.363pcm Monthly Costs e.g. Gas, Electric, Local Tax, Cleaner, Gardener etc €400pcm ________________________________________ Passive Monthly Income €945pcm PASSIVE INCOME €945pcm

  14. Built in Equity - BMV Property Price €469.995 Agreed Purchase Price €379.995 Discount Negotiated € 90.000 Plus associated costs: Deposit of 15% required €70.500 Taxes €14.100 Legal Fees € 1.000 Broker Fee € 2.000 Total Costs €87.600 CASHBACK ON COMPLETION € 2.400 PLUS BUILT IN EQUITY OF €70.500

  15. Passive Income Monthly Income of 6 Rented Rooms 6 @ €125 per week €3.250pcm Costs: Monthly Mortgage Payment at 5% €1.664pcm Monthly Costs e.g. Gas, Electric, Local Tax, Cleaner, Gardener etc €400pcm ________________________________________ Passive Monthly Income €1.185pcm PASSIVE INCOME €1.185pcm

  16. Total of €128.250 Built in Equity + Amount of €4.400 in your Bank Account + Passive Income of €2.130 Per Month With just 2 Properties ….

  17. Real Estate

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