How To Buy Your Dream Home Debt-Free Under 10 Years!

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If 2025 is your year to buy your dream home or invest in real estate, we can show you how to plan and potentially buy debt-free.

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Buy Your Home Debt-Free 

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Whether you already own, rent, or are just thinking about buying, you might be wondering: Is it possible to buy a home debt-free? It’s a long-term goal. If you want a home now, you'll need debt and years of repayments.

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While owning a home is often seen as essential, it can limit freedom, especially when you're young. What if we told you that it could be possible it could invest in property and still enjoy flexibility? That’s what I've been doing for 11 years—investing while renting and travelling.

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Let me explain how it works.

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Key Questions to Ask:

• What’s your goal?
• What type of property do you want?
• Do you want to retire with passive income?
• What strategy fits your needs (e.g., rentvesting, flipping, or investing in multiple properties)?

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Rentvesting offers flexibility by investing in properties while renting in your ideal location. Think of it like owning a fleet of cars instead of just one dream car. By building multiple assets, you gain options: 

• Buy multiple properties
• Sell some properties.
• Keep them for passive income.
• Sell everything and buy your dream home debt-free.

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Let me break it down into 3 simple steps. This is what worked for me, but remember, it's just advice. Always consult with a professional before making any decisions, like our Search Property Consultants. 

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The 3 Phases:

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Phase 1: Buy Multiple Properties - You can buy one or more properties, depending on your goals.    

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Phase 2: Sell or Trade Out - If you have a property with great equity but poor cash flow, consider selling it and buying in a higher-yield location. 

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For example, a client last year sold a property in Newtown, Sydney, which had strong growth but only a 2% rental yield. What we ended up doing was selling that property. 

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We then purchased two other properties for her, which ended up renting out for 5.5%, and that dramatically increased her cash flow. Now, she had options, which meant that as she approached retirement, she could choose to sell one of those properties, use the cash to possibly fund a nursing home, or give it to her family. 

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Phase 3: Buy Your Dream Home or Retire Debt-Free - Let’s say your goal is to buy 3 properties in 3 years.

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In three years, with strategic investments, you could buy a $500,000 home using equity from your properties, requiring little to no additional money out of pocket. 

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By year three, your properties might be worth $1.75 million in total assets.

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Realistically, the first two years are the toughest. If you’re thinking you have no properties or just one, and it feels like it’ll take forever, remember that the hardest part is those first two years.

Make sure you're buying the right property. If it doesn't grow, you'll set yourself up for failure. Top Tip - Avoid dud properties.

How to Scale Up: If you’re wondering if you have the borrowing capacity to keep buying properties, speak with a broker who specialises in property investment, not just family homes.

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Now, I’m going to make this process super easy for you. There’s a tool on our website, and you can easily use this calculator for yourself. 

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Our compound interest calculator lets you easily project your investment growth and future asset value, helping you plan with clear data. 

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For example, to project a portfolio’s growth over 10 years, start with an initial deposit of $1,755,000, set the deposit frequency to "daily," and let it grow at 7% annually.

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The results are as follows: 

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In year one, say your portfolio is worth $1,755,000 and grows by $122,000. Now the beauty of this is, because it's compounding every year, the rate of growth increases. 

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Over 10 years, your portfolio grows by about $1.7 million, which means that your total asset portfolio now could be worth about $3.45 million. 

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If you were to look at that annual growth rate, you'd be making about $170,000 a year, tax-free.

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Now, remember this doesn’t happen every time and is based on the basis that you've picked the location that's going to grow by 10%, and a lot of data goes into actually picking these locations. 

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If it were easy, everyone would do it. Many think location is the "Holy Grail," but it's just 10% of the equation. The other 90% is about finding the right properties at the right price and negotiating the best terms. Even if you buy the same property we do, better terms can protect you from risks. For help, book a FREE discovery call with my team.

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What Happens Next? Your initial investment of $1.75 million could grow to nearly $6.8 million due to the power of compounding growth. 

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After 10 years, you could sell properties to buy a $1.2 million home debt-free. 

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If you wait 20 years and prices keep rising, you could sell two properties, keep one, and buy a $3 million home debt-free (this is based on estimates and with the hope prices in property keep rising).

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This strategy offers a path to scaling your portfolio quickly, regardless of rising property prices.

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Rentvesting and investing in multiple properties gives you flexibility to move, while building wealth. If you need help, book a FREE discovery call with my team.

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Let’s make 2025 the year you take control of your financial future!

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If you need assistance, feel free to reach out to my Search Property team.

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See you in the next one. Thanks, everyone!