What Is Eddie’s Debt Strategy?

Dilleen Property Group 2022

A debt strategy is an important consideration for all property investors. Often when people think of a debt strategy for property investors, they may assume that involves selling properties. However, Eddie has another strategy in mind.

Eddie’s debt strategy is to not sell any of the properties in his impressive property portfolio. Why may you ask? Well, Eddie does not believe in selling properties at all (unless of course your property isn’t performing well). If you buy in locations with capital growth indicators, metro locations and properties that are positively geared then you shouldn’t need to sell any of your properties. Eddie has only sold one property in his entire portfolio.

Eddie’s plan is essentially to have these properties pay themselves off over the 30-year period. It’s as simple as that. The best strategy is to buy properties that are already positively geared so that you can have the tenant pay the mortgage off for you.

Eddie bought his first property at the age of 18 and he is now currently 30 years old. Some of Eddie’s loans are almost at the halfway mark. If you put it into perspective, say you have a property that generates an income of $20,000 per year and your expenses are only $12,000 per year, then you will have $8,000 in net income annually. This $8,000 can be used to fund your lifestyle or you can reinvest it back into your loan and pay it off quicker. Although capital growth is very important, positively geared properties should also be added into your portfolio as they provide flexibility, and they will ultimately pay off your mortgage off for you.

Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.