Chris Childs

The 3 phases to retirement on a property portfolio…

So these are the three phases of getting to retire on a property portfolio.

  1. Accumulation Phase We start with the accumulation phase. The accumulation phase is when we use your income and your equity in your home to buy a property. As property values increase and your income increases you can buy again and you are on the way to building a property portfolio.
  1. Acceleration Phase The acceleration phase is great because as the values of your investment properties increase, you are actually using the investment property income and equity to get the bank to say yes. Bottom line, if your income is positive in the property investment side and your properties have increased in value, you can borrow to buy more.
  1. Maturity Phase Then we get to the maturity phase. And this is the great phase when you just sit back, kick back and wait. Because if you hold property long term, the value is going to go up, the rent is going to go up and eventually, you’re actually going to be living from the retirement side.
However, until you retire, two things are happening. Your wealth is increasing and your debt is being paid off without any effort from you. This is what I call ‘NPI’, non perspiration income.Don’t be afraid of debt and don’t be afraid of using equity. It’s these fears that hold us back and why some people retire poor because they don’t learn how to do it correctly. Chris