hey guys Eddie here from Deline property today I want to do a quick video this video is all about
why you should not pay off your first investment property this is probably going to shock a lot of
people and I you know share my thoughts on this but it's one of the biggest mistakes that I've
made when I was first doing my property investment portfolio I what basically happened behind the
scenes so I was RiRi wind I was ten years ago twenty eight years old I bought my first property
at eighteen and after one to three years of owning that first property I had the old-school mentality
and a lot of people learn this from unfortunately the parents or you know family relatives and all
that other kind of stuff the conservative way is buy property pay it off have no debt debts
bad etc etc what I've learned today is a little bit different and what I the way that I look at
things now in terms of investment perspective is a lot different what I would tell myself will try
to keep this video short and sweet or what I would tell myself back then is to not pay off as quickly
as possible not put extra money in that first investor property not try to pay it off as well
as you can especially in the first five years so it depends on what a person is after a long term
what their goals are but a lot of people invest in property because they want to create wealth they
want to build a better future for themselves and their family so they might want to replace their
income have more options in life you know they might save someone zoning let's say a hundred
thousand dollars a year a lot of people invest in property and start investing in property because
they think subconsciously in the back of the head that maybe in 10 15 or 20 years if I invest
in property now in 15 or 20 years those properties might be able to give me 100k income so that maybe
I don't have to work in 10 15 or 20 years maybe I can go to the beach maybe I can spend more time
with my family friends or maybe I can only work a little bit less because I don't want to work six
days a week a lot of people don't want to work six days or 5x maybe they want to have more options so
why I would tell my younger self go back in time don't pay off that property as soon as possible
is because if you crunch the numbers and actually look at what one property or two properties paid
off or give you quite frankly it's generally not enough it won't give you that 100k come in 10 15
or 20 years it will not give you that if you're close to numbers depend more properties you're
buying if you're buying a property for say you buy property for five hundred thousand and that
five hundred thousand dollar property would read for five miles per week if you pay that whole one
property off and you stop one in 15 years is that going to give you $100,000 income absolutely not
because that properties are you ready for five hundred even if it goes up with inflation and
then it starts renting for eight hundred dollars a week or a thousand dollars a week 20 years from
now that's still only going to be one thousand dollars per week gross - cancer rates water
rates and expenses so with no loan you might only net 750 or $800 per week from one property paid
off and that started going to prop it with Bob with over 2000 so what I would do what I have
done what's work best for me is by reading books like Rich Dad Poor Dad reading you know property
investment books and all that other kind of stuff and I've got a free ebook that is over 100 pages
of just you know all the knowledge and information I've learned over the years so I highly recommend
checking out it is completely free just saw by you know knowledge of building my portfolio 16
properties by the age of twenty seven twenty eight now but what I would tell myself is you've got to
fir especially being young person if a person's you know under thirty-five under forty they've
still got time especially the persons in their 20s if I was starting again I would tell myself not to
pay down to death property as soon as possible I would tell myself to pay the bare minimum and
continue saving instead of putting that money into the loan I would keep that money and buy
more properties with it and expand and in grow a large portfolio of five six eight properties
because together those properties are going to have strengths those properties are going to have
streams of income you might have five properties as an example rented for $400 per week each then
you have $2,000 per week in rental income coming in yes you've got expenses yes you might have a
lot you would have loans on them but in the long term over the next 10 15 20 years they are the
loans will go down the rents will increase you will get tax reductions along the way and you can
have compound growth over time if you hold a three million dollar portfolio as an example today even
if the property is only got about five percent per year so you've got three billion dollars at
five percent growth so it's going to take 20 years let's just say that's very conservative it's going
to take 20 years to double those properties in value 5% growth if you have three million
today the first year you're going to make one hundred and fifty thousand dollars of growth at
five percent but the second year you're going to get five percent growth on three point one
five million worth of property so the second year you're gonna get the don't have a calculator on
me right now but pressure it's one hundred and fifty seven thousand five hundred in growth on
the second year so after three years you would have made over you know I almost four hundred
thousand dollars in growth in just three years by owning and leveraging that large portfolio
so if I were to go back in time I would continue to accumulate properties especially being young
safely securely bond below market value metro areas were growth and mentally you're trying to
take all the motion out of it as always so I hope this video helps thanks so much for watching guys
if you have any questions send them through and I'll do my best to answer them thanks guys bye