Millionaire Success In Five Years - Part 2

If you want to become a millionaire within just five years, you need to know about LANE #3 of the Wealth Highway, Property Investing

what you will find is that as many wealthy people made their money in business, as property, and once they have made their money in one of those two lanes, they then invest in the other.

Why? you will find that property is much easier!

In the same way that you have two ways to make a million in business essentially, you have two ways to make a million in property, within five years.

Actually, there are SO MANY ways to make a huge amount in property - like buying, renovating and flipping - but most of them incur capital gains tax whcih will make my sums harder, so I'm going to concentrate on the simplest and most tax efficient methods.

To make (and keep) $1 million in property in five years, you could work out that you need to create $250,000 rental profit per annum, net of tax, or $416,666 per annum gross. That's $34,722 per month.

If you work out that a good rental profit on a small condo or family unit is $200 per month, then you can see that you need 173 rental units to achieve your goals.

An easier way is to create a property portfolio that appreciates in value by $250,000, per annum, which you can periodically refinance to pull out your equity, tax free (it's not earned income you see, so not taxable).

If you figure that property appreciates in value by 10% per annum on AVERAGE, which means that some years it will do better, some years not so well, but over time, 10% per annum is reasonable for most of Europe, the UK, the USA and I believe most urban parts of Australia.

So in order to own a property portfolio that will appreciate by $250,000 per annum and that's 10% then yes, you've guessed it, you will need $2.5million worth of property.

And before you tell me that this is impossible, let me tell you about my great friends Greg & Andy, who took £10,000 on a 0% credit card, bought property under market value, did it up a little bit, revalued, refinanced, pulled their deposit back out and went again, which enabled them to build up a £37 million (that's pounds NOT dollars) within just 10 years.

if you visit our blog you can enjoy Greg & Andy's very funny story.

They can pull out £3.7 million per annum, tax free, but it gets even better than that.

Do the sums for yourself because every year, the compounding effect kicks in, and every year, their portfolio is growing exponentially, and so then is their available income every year.

One way to make money from property without even owning any (great for people without a deposit, who can't get a morgage or who's credit rating isn't great) is to educate yourself about what makes a great property deal and then go and find those deals and then sell them onto investors with money but no time.

Another way is to find people who HAVE to sell, offer to buy their property at a future date at today's full market value, then find people who can't buy now but who can in the future (perhaps they are new to the country and haven't built up a credit rating yet) and then strike a deal whereby the future owner moves in and rents the property, but has agreed to buy it for todays price, but in two years time. You make money from both deals and often an income at the same time. On The Money Gym blog we go into this in more depth.

There is another way to buy property - guaranteed 405 or 50% under market value. This is not an income strategy in the short term but it could certainly make you a property millionaire within five years.

I hope I've fired you up about the possibilities for becoming a property millionaire - there are just SO MANY ways to make money from property.

Look for Part #3 of this article to enjoy the extensive information on Lane #4.

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