If you’re a homeowner born before 1982, this property investment strategy could have you retiring a decade earlier.
More than 11,000 investors have taken advantage of record-low interest rates, combined with this simple “property investment strategy”, and you can too.
Australian’s are living longer. Home values are skyrocketing. And for many families, their home is their single biggest asset, often accounting for more than 50% of their net worth.
With the cost of basic necessities such as food and fuel on the rise at a faster rate than wage increases, it’s not surprising that more homeowners are starting to think of ways to secure their financial future.
While most people sit back and hope everything just ‘sorts itself out’, savvy homeowners are using a very simple, yet underutilised investment strategy known as PIP.
PIP, also referred to as ‘Positive Income Properties’, are helping Australian homeowners use the equity they’ve built up in their current home, and turn it into extra cash flow to build their families wealth and property portfolio.
However, there are still hundreds of thousands of homeowners who could benefit from a ‘PIP’ investment but are simply unaware this strategy exists.
POSITIVELY GEARED PROPERTY THAT CAN DOUBLE THE RENT YOU RECEIVE. BUT WHAT’S THE CATCH?
Old school investors, probably from your Mum and Dad’s generation, think (PIP) Positive Income Properties are a myth and sound too good to be true. This is because they invested in the era of ‘negatively geared properties’ thinking this was the best way to structure their tax.
PIP properties certainly aren’t a myth, and the only difference to a traditional investment property is your outgoings (mortgage repayments and rates) are less than the income the property generates (the rent you collect).
The Domain stated in a recent article that PIP’s were ‘the holy grail’ for investors looking for smart investments, and we have to agree.
In fact, ‘Positive-Income Properties’ took hold around 40 years ago. Back then they were very simple, they went by the common term ‘Granny flat’ and they were designed for somewhere the in-laws could live as they got older, then people started renting them out to increase their household income.
“The old-style granny flat was good, but the new (PIP) investments are one of the most effective ways possible for investors to maximise their rental returns and limit their risk’ said Mr Stephens who just purchased his second (PIP) property in South East Queensland.
Although today’s PIP Investments have been refined and greatly improved to provide even greater security, whilst also removing much of the financial risk associated with property investing, there are still many misconceptions. For example, many people mistakenly believe that a property investment needs to be ‘negatively geared’ for tax purposes for it to be worthwhile, which is certainly not the case.
One key benefit of a (PIP) ‘Positive Income Property’ Investment, is it allows you to hold a ‘cash flow positive’ property that increases in value and provides another source of income that you don’t need to personally work for.
A recent survey by Australian Property News (APN), found that 87% of current ‘Positive Income Property Investors’ rate their investment as ‘Excellent’.
Unfortunately, many homeowners who could benefit from a PIP investment don’t even bother to get more information due to the old ‘negative gearing being the way to go’ rumours of the past. Which is a real shame because Positive Income Properties are helping many Australian families invest in property without the need for cash deposits, and live a happier and more financially secure life.
If you’re a homeowner born before 1982, you owe it to yourself and your family to learn more about Positive Income Properties and how they may help you reach your financial goals years, if not decades, earlier than planned.