Interest Rate Saving Or Wealth Building Potential
The foundation of wealth building
The tough truth is that you don't build wealth by buying one investment property. If you have purchased wisely, you will certainly see some capital growth. Probably more than shares, in recent times, and also more than savings.
But serious wealth building only comes from duplication: buying an investment property, watching it grow in value, accessing your increased equity - and purchasing another investment property. If you keep buying wisely, and structure your finances correctly (as we will discuss in the next section), you can duplicate this process again and again.
The beauty of duplication is compound growth. If you use the capital growth on one property you are getting capital growth on two properties. You can use the capital growth on those two properties to buy two more properties. And so on... The growth is exponential.
And it is not that difficult to get the maths working for you - if you can find a lender who will work with you.
Then why do 86% of Australian property investors only buy one investment property?
One of the main reasons is that they look for interest rate savings - not the right loan.
