Here it is…
Understand (and use) the power of gearing.
Using other people’s money to get ahead.
Used carefully and wisely, borrowing money can “turbocharge” returns on an investment.
With other people’s money, you can increase the value of the total pool of investments that your returns are generated by putting down a smaller deposit and borrowing the money from someone else—normally a bank.
The Key to Gearing
The key is to make sure the total return (income and growth) is greater than the cost of borrowing. This chart illustrates the power of using other people’s money.
With any investment there is risk…and when you rely on other people’s money to increase your return on investment, there’s a risk. However, when you manage the risk responsibly and carefully, you can benefit from using the power of gearing along with your SMSF to acquire investment property.
If you have questions about SMSF and gearing Go here or call 1300 886 149. You can speak directly with an SMSF specialist…with no obligation. We’ll show you how to use gearing…prudently.
To Your Financial Future
Your Friends at SMSF Property Services Australia
P.S. Even if you’re new to gearing, it’s important you understand why so many investors are using gearing. Speak with us now about gearing. We’ll answer your questions with no obligation. Go here or call 1300 886 149.