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ǁŝůů ďĞ ƉĂŝĚ ŽƵƚ ŝŶ ϮϬ LJĞĂƌƐ ʹ ďƵƚ ŝƚ ŐŝǀĞƐ the couple ƚŚĞ ŽƉƟŽŶ ƚŽ ƌĞǀĞƌƚ ƚŽ
ƚŚĞ ůŽǁĞƌ ƌĞƉĂLJŵĞŶƚ ƐŚŽƵůĚ ƚŚĞLJ ĮŶĚ ƚŚĞŵƐĞůǀĞƐ ǁŝƚŚ an emergency or a
ƉĞƌŝŽĚ ŽŶ ŽŶĞ ŝŶĐŽŵĞ ;ůŝŬĞ ŵĂƚĞƌŶŝƚLJ ůĞĂǀĞͿ͘
• ƵLJ ĂŶ ŝŶǀĞƐƚŵĞŶƚ ƉƌŽƉĞƌƚLJ
tŚŝůĞ LJŽƵ ĂƌĞ ďƵƐLJ ǁŽƌŬŝŶŐ ƚŽ ƉĂLJ Žī LJŽƵƌ ŵŽƌƚŐĂŐĞ͕ ŝƚ ŵŝŐŚƚ
ƐŽƵŶĚ ĐŽƵŶƚĞƌŝŶƚƵŝƟǀĞ ƚŽ ĐŽŶƐŝĚĞƌ ƉƵƌĐŚĂƐŝŶŐ ĂŶŽƚŚĞƌ ƉƌŽƉĞƌƚLJ ĂŶĚ
ƚŚĞƌĞďLJ ŝŶĐƌĞĂƐŝŶŐ LJŽƵƌ ďŽƌƌŽǁŝŶŐƐ͘ ,ŽǁĞǀĞƌ͕ ƉƵƌĐŚĂƐŝŶŐ Ă ƐĞĐŽŶĚ
ƉƌŽƉĞƌƚLJ ĨŽƌ ŝŶǀĞƐƚŵĞŶƚ ĐĂŶ ŚĞůƉ LJŽƵ ŝŶ ƚǁŽ ǁĂLJƐ͘
&ŝƌƐƚ͕ ƚŚĞ ƵƐƚƌĂůŝĂŶ dĂdž KĸĐĞ ; dKͿ ǁŽƌŬƐ ĨĂǀŽƵƌĂďůLJ ĨŽƌ ƉĞŽƉůĞ
ǁŚŽ ƉƵƚ ƚŚĞŝƌ ŽǁŶ ŵŽŶĞLJ ŝŶƚŽ ĂŶ ŝŶǀĞƐƚŵĞŶƚ ƉƌŽƉĞƌƚLJ ƚŽ ƚŽƉ ƵƉ
ƚŚĞ ƌĞŶƚĂů ŝŶĐŽŵĞ ƚŚĞLJ ƌĞĐĞŝǀĞ ĨƌŽŵ ƚĞŶĂŶƚƐ͘ dŚŝƐ ŝƐ ĐĂůůĞĚ ŶĞŐĂƟǀĞ
gearing. What this means is that you can deduct any losses from a
ƌĞŶƚĂů ƉƌŽƉĞƌƚLJ ;ƐƵĐŚ ĂƐ ƚŽƉƉŝŶŐ ƵƉ ƌĞŶƚ ƉĂLJŵĞŶƚƐ ƚŽ ŵĞĞƚ ŵŽƌƚŐĂŐĞ
ŽďůŝŐĂƟŽŶƐͿ ĨƌŽŵ LJŽƵƌ ƐĂůĂƌLJ ŝŶĐŽŵĞ͕ ǁŚŝĐŚ ƌĞƐƵůƚƐ ŝŶ Ă ůŽǁĞƌ ƚĂdžĂďůĞ
ŝŶĐŽŵĞ͘ LJ ƉĂLJŝŶŐ ůĞƐƐ ƚĂdž͕ LJŽƵ ĐĂŶ ƉĂLJ ŵŽƌĞ Žī LJŽƵƌ ŚŽŵĞ ůŽĂŶƐ͘
hůƟŵĂƚĞůLJ͕ LJŽƵ ǁŝůů ŚĂǀĞ ƚĞŶĂŶƚƐ ƉĂLJŝŶŐ Žī LJŽƵƌ ŚŽŵĞ ůŽĂŶ ĨŽƌ LJŽƵ
ǁŝƚŚ ƚŚĞ ďĞŶĞĮƚƐ ŽĨ ƚŚĞ ƚĂdž ƌĞŐŝŵĞ͘ KĨ ĐŽƵƌƐĞ͕ ƐĞĞŬŝŶŐ ŝŶĚĞƉĞŶĚĞŶƚ
ƚĂdžĂƟŽŶ ĂŶĚ ĮŶĂŶĐŝĂů ĂĚǀŝĐĞ ŝƐ ŝŵƉŽƌƚĂŶƚ ƚŽ ĚĞƚĞƌŵŝŶĞ ƚŚĞ ǀĂůƵĞ ŽĨ
ĂŶLJ ƚĂdž ďĞŶĞĮƚƐ͘
^ĞĐŽŶĚ͕ ǁŚŝůĞ ƚŚĞƌĞ ĂƌĞ ƉĞĂŬƐ ĂŶĚ ƚƌŽƵŐŚƐ ŝŶ ƚŚĞ ƉƌŽƉĞƌƚLJ ŵĂƌŬĞƚ͕
the troughs are generally never bigger than the peaks and historically
property prices close to double every seven to ten years. This makes
ĂŶ ŝŶǀĞƐƚŵĞŶƚ ƉƌŽƉĞƌƚLJ Ă ŐƌĞĂƚ ǁĂLJ ƚŽ ƉĂLJ Žī LJŽƵƌ ŚŽŵĞ ůŽĂŶ ŝŶ ũƵƐƚ
seven to ten years. By holding onto your investment for this length
ŽĨ ƟŵĞ͕ LJŽƵ ǁŽƵůĚ ŚĂǀĞ ďƵŝůƚ ƵƉ ĞŶŽƵŐŚ ĞƋƵŝƚLJ ƚŚĂƚ LJŽƵ ĐŽƵůĚ ƐĞůů ŝƚ
and knock out your home loan in one hit.
/Ĩ LJŽƵ ŚĂǀĞ ĂůƌĞĂĚLJ ďĞĞŶ ůŝǀŝŶŐ ŝŶ LJŽƵƌ ŽǁŶ ŚŽŵĞ ĨŽƌ Ă ŶƵŵďĞƌ ŽĨ
LJĞĂƌƐ͕ LJŽƵ ĐĂŶ ŽŌĞŶ ƵƐĞ ƚŚĞ ĞƋƵŝƚLJ ĨƌŽŵ LJŽƵƌ ĞdžŝƐƟŶŐ ƉƌŽƉĞƌƚLJ ƚŽ
fund the deposit for your investment.
Case study:
^ƚĞǀĞ ĂŶĚ &ŝŽŶĂ ƉƵƌĐŚĂƐĞĚ Ă ůĂŶĚͲĂŶĚͲďƵŝůĚ ƉĂĐŬĂŐĞ ŝŶ EŽǁƌĂ͕ ƚǁŽ ŚŽƵƌƐ
ƐŽƵƚŚ ŽĨ ^LJĚŶĞLJ ŝŶ E^t͘ dŚĞ ůĂŶĚ ƉƵƌĐŚĂƐĞ ƉƌŝĐĞ ǁĂƐ ΨϭϮϳ͕ϬϬϬ ĂŶĚ ƚŚĞ
ĐŽŶƐƚƌƵĐƟŽŶ ƚŽ ďƵŝůĚ Ă ĚƵƉůĞdž ǁĂƐ ΨϯϱϬ͕ϬϬϬ ĨŽƌ Ă ƚŽƚĂů ƉĂĐŬĂŐĞ ƉƌŝĐĞ ŽĨ
Ψϰϳϳ͕ϬϬϬ͘
^ƚĞǀĞ ĂŶĚ &ŝŽŶĂ ďŽƌƌŽǁĞĚ ƚŚĞ ĨƵůů Ψϰϳϳ͕ϬϬϬ͕ ǁŚŝĐŚ Ăƚ ĂŶ ŝŶƚĞƌĞƐƚ ƌĂƚĞ ŽĨ
ϰ͘ϱй ŽǀĞƌ ϯϬ LJĞĂƌƐ ŚĂĚ Ă ƌĞƉĂLJŵĞŶƚ ŽĨ Ψϭ͕ϳϴϵ ƉĞƌ ŵŽŶƚŚ͘
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