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In case you correctly own investments property or a home with mortgage. You just get yourselves a goose, then what you might be interested to know is to make the goose to be a goose which can lay you golden eggs.
Before you want some golden eggs from the goose, you need to understand your goose.
What shall we know? The first thing is that we must know is that the law allows you two equities in your property.
One is the mortgage equity and another is the property equity. Property equity is quite different between the 30 years minimum payment mortgage and the value of your home.
Mortgage equity is golden egg which we need to get. This is the money you can get freely at any time you want. It means the additional payments over your minimum payments with compounded interest.
There are several rules you need to follow.
1), do you use your property equity to do additional investments.
2), Use your mortgage equity only.
Use your mortgage equity to make wealth and strictly follow the seven elements.
Rule No 1: Feeding the goose, put money which shall not less the minimal monthly mortgage repayment into your mortgage every month.
Rule No 2: You need to do this over time, if you do not need the goose, the goose will not give golden egg.
Rule No3: You shall focus on the redraw mortgage not the balance of your mortgage.
Rule No4: The money you pay for the mortgage every month must be free. You shall ask mortgage brokers for this information, never ask for a bank.
Rule No5: The extra payment without fees every month will simply allow you to withdraw the surplus of mortgage equity. If you ask a bank for help, they will steal a chunk of your egg.
Rule No 6: The money from your mortgage equity can be used to investments. (Get yourselves a financial planner)
Rule No 7: Then you can apply your investment back to your mortgage to speed up the creating mortgage equity. So you goose will eat its own eggs and lay bigger and bigger eggs every day. Just do not put extra money into the mortgage.
People failed in this program, mostly because they put too much money with their mortgage account. You shall not ever put money left over at the end of the month.
In summary, there is no easy way to building wealth for you. You create your goose and make them larger with their own golden eggs. How much profit do you want to get from this game? You circle the seven steps again and again until you gather the wealth you want.
The first step is to see your mortgage as a goose that lays golden eggs.
Updated On 6th Aug,2009.
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