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Ben Kingsley Blog post by Ben Kingsley

A Million Dollar Plus Call

You’ve talked about it, but you are just unsure about what’s the right decision? For some it’s do we:

1. Buy another investment Property

2. Hold the existing home and turn it into an investment property and buy the new home

3. Sell existing property to buy an upsize property or reduce debt

4. Sell our current home and investment property to upsize the family home

5. Stay where you are and buy an investment property


Can you see where I am going with this………basically with any of these options above they will have a financial impact in terms of your wealth outcomes for later in life, so it becomes a huge decision, both from a lifestyle and also a wealth perspective.

Here’s how: Let say the ‘net’ result in any of these choice is a difference in asset wealth of say $400,000.

Let me explain, in point 1—let’s say you bought an investment property worth $400k,in point 2—Again let’s assume the net different from the decision to hold is a $400k increase in your net asset position.
In point  3, I want you to assume that by selling existing property you actually reduce your wealth base by $400k.

Get the gist of what I am proposing here, keep an extra asset worth $400k or don’t.

Now let’s look at the compounding value of that asset in say 10 years from now, assuming an annual growth rate of 8.5%. In 10 years that extra $400k will be worth $904,000—that’s a difference of $504,000 in your asset base.

Now let’s see what happens if we could hold that asset for 20 years.  It would be worth $2,044,000. That’s a $1.644 million difference in value or as the title suggests— a Million dollar plus call…..

So the next time you are presented with this situation, make sure you get serious Money Planning Advice, as value is benefit less cost, and there plenty of benefit and value here, that smashes any professional fees to make an informed decision.

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