Capital Growth and Investment Property go Hand in Hand
If a couple has a $400,000 debt on their home and wants to pay it off within 10 years, they can buy an investment property for $400,000.
The correct property chosen by self-funded freedom will have a no adverse effect on their current lifestyle as the taxman & tenant will pay the majority, if not all of the running costs
Say it doubles in value in 10 years’ time, they have created $400,000 in equity. They can then sell that investment, take out the $400,000, and pay off their home loan.
They would have to consider capital gains tax and things like that but using the equity in your home to buy growth assets can be a really powerful way to pay off your home
