Building A Future For You And Your Children

Do you have that ambitious streak in you. Do you want to do something with your life, leave a mark so that when you are gone people will say Joe Blow was here.

If you just go to work or don’t work, go home, sit and watch TV, and live life day to day not caring about the future, what legacy are you leaving for your family and the wider community. You have done nothing to leave a mark on the world so that when you are gone people will remember you. What is the point of your existence if you don’t care that you will be missed and that you won’t be remembered.

If you are like me you do care, and do want to be remembered, so you buy a house, invest, donate some of your time to a good cause, spend time with your children trying to teach them how to be good citizens, and generally try to live a useful and productive life.

I know very few people who are born rich, so what the majority of people have to do is save for a deposit, then borrow the balance of the purchase price of the home you wish to buy, and probably spend the next 20 or so years paying the mortgage. Then you start to think about investment properties.

My wife and I have tried to jump the queue in this cycle. We had to borrow the deposit to buy our first home, because we were terrible at saving. Once we have a debt we are good at paying it, but no good at leaving money sit in a bank.

We got our first home, a real doer upper. We renovated extensively, doing most of the work ourselves. After 2yrs we used the equity on that home to purchase another doer upper, correcting the mistakes we made while renovating the first house.

This process required the procurement of 2 mortgages. Values rose dramatically in our area, so it was only another year that we were able to use the equity on these 2 homes to buy a home on 79 acres. Which we are now developing into a caravan park, so now we have 3 mortgages and a further debt to help us develop the park. Yes we are taking huge risks, but they are calculated. We didn’t buy either of the houses in town without working out what our repayments would be, and what rental we would receive, and whether or not the cost of the renovations would add value or equity to the properties. We got ourselves in a position where once the properties were rented out, the income was enough to service the loans.

The whole point is that we are at the mercy of the banks, interest rates, etc. But we are still determined to continue what we are doing. Between the 2 of us we have 6 children and a growing number of grandchildren, and with the way property values are going, not many young people will be able to purchase a home of their own without the help of their parents. The whole point of having children in our mind is so that they will have a future, and that is what we are trying to give them, or at least a start to that future.

All this said and done, we are still at the mercy of the banks. Luckily we feel that we have a very helpful bank manager, she has become almost like a friend, but she still works for the bank and has her limitations.

Today I was made aware of a pro gramme that helps you search through your bank statements to see if the bank has been charging you more than they should be. The investment strategy that we are using has us just keeping our noses above our debt, not as people say up to our necks in debt, we are such risk takers that we are up to our nostrils in debt. What if by no fault of our bank manager or ourselves, someone or something is adding more water than needs to be added. What if the bank, in its calculations, is charging us more interest or charges than they are allowable. You hear all of the time where a bank has had to refund money to clients because they have charged too much, but if you are like us, you don’t know how to check up on them, or you just trust that they are incapable of making a mistake.

But lets face facts why would you trust someone you don’t know, and the only reason you have contact with them is so that they can make money out of you, they don’t care about you or your family’s welfare. Their only interest in you is their profit. Let them make a fair and reasonable profit, but not one cent more. You Can easily fix this problem by calculating your own daily interest and breaking out over the length of the loan or just find out more visit http://www.makeyourich.com.au