How to unprotected to Financial Freedom with Your Home

How to unprotected to Financial Freedom with Your Home

The secret disclosed on how you too could unprotected to financial freedom by character (and tell the pension companies just where to stick their measly, worthless ‘pensions’) Geoff Morris is a self-made character millionaire who made it in less than 18 months already with a hectic ‘day job’. He has written a series of articles to help people like you unprotected to the same levels of success – as long as you are willing to ‘Go For It!’

Many people these days are getting more and more concerned as they approach retirement age. already those in their late twenties are beginning to become concerned about the effects of old age. What has brought on such a dilemma in those so young? It is the plight of the pensions in this country that is causing this concern?


But there is a solution to all this that could not only remove this fear, but also dramatically enhance the lifestyle of all concerned.

What is this solution?

Most people are brought up to believe that their main goal in life is to own their own house, and have fully paid for it by the time they retire.


What is the point in just scrimping and scraping throughout your working life only to have to sell your house and move down market, or worse nevertheless, sell up and rent, while you just try and make ends meet on a pitifully small handout from the State?

As soon as you have bought your first house, you should be thinking about buying your second and your third, and your fourth…..

“What on earth for” , will be the retort of most of you, “ we can only just provide the repayments on the first one, let alone buy any more”

Let’s look at the way most people buy a house, and then lets look at some different methods.

The usual way of acquiring a house is to put down a large place – somewhere in the vicinity of 10 – 15%, which on an average £200,000 house will equate to around £30,000.

The next route is to take out a repayment mortgage over a fixed term, say 15 to 25 years, where you will be paying a combination of interest on the noticeable loan, in addition as repaying the capital.

On top of this, most people will take out some other financial facility, such as an endowment policy coupled with a life insurance policy for the period of the mortgage, so at the end of the mortgage term, they will not only own the house outright, but also have a lump sum. Not a very large lump sum, as a lot of the insurance premiums would have gone towards the life cover purchased.

Now, we have all seen how endowments have failed terribly of late due to overoptimistic performance, so there is no guarantee that the above route wil produce anything other than a tremendous financial drain on this person for a very large period of their lives, and with no real plan for their future except ownership of a house, a small endowment, and probably a ridiculously low pension to keep them going in their retirement years.

However, there is another way. Interested? Then read on….

Let’s look at a totally different scenario, where the associate looking to buy their first house took specialist advice from one of the more reputable character clubs that are around. These clubs are admittedly usually aimed at character investors, but isn’t that what we all should be?

Now, let’s take our example of the £200,000 dream house for our hopeful house buyers. They see a development of dream houses by one of the nationally recognised house builders. Do you think they could persuade the developers to pay the 15% place for them? On their own – not a chance, but if our hopefuls go via one of these character clubs, the chances are that the developer would now be willing to pay the 15% as a ‘gift’.

I can see your expression now. “Not a chance” you say. But it does happen, and we can position introductions to make this possible.

So, you now have bought your house, and instead of having to find £30,000 place, al you have to do is get your self a mortgage.

Now, when you move into a house, especially in your early years, the chance of you staying there for the term of the mortgage is very doubtful. You may change jobs; you may want to move to a different area, or there may be many other reason why you will want to move within a few years. So, the house you have bought is only a permanent residence, and you could almost treat it as a rental character – but with one big big difference.

Whether you paid the place, or whether you got this ‘gifted’ place from the developers, this money, this equity in the character is YOURS. And not only that, it is a historical fact that house prices, given time, will always increase.

So as this is a ‘permanent’ abode, why go for a mortgage that includes a repayment component in it? Why not go for what is known as an interest only mortgage? What this is then is a loan where you never pay back any of the rule of the loan, but only the interest on it. You will have to pay back the capital at the end of the term, but we will be showing you how easy that can be achieved a little bit later.

Your situation now is that you are paying the barest minimum mortgage repayment, but are also sitting on a important amount of INCREASIING equity! You do not have to pay for an expensive endowment policy, although a life policy may well give your other half a comfort blanket.

But now look at another effect, which is called ‘Leverage’. With a no-money down deal, the leverage is enormous, but consider the case where you bought a £200,000 house and put a 10% (£20,000) place down on it. If the house goes up in value by 10% the equity in your house will have increased by some £20,000. Now, your initial investment was £20,000, so you will have DOUBLED your investment in 12 months. Not bad huh! Try doing that at your local Bank, or already if you dare, the Stock Market!

So, let’s say house prices went up by just 5% per annum over the next 2 years. This would average an increase in your equity (equity being the difference between the value of your house and the amount of the mortgage on it). This would average you now owned an additional £10,000 after the first year (5% of £200,000) and £21,000 after the second year (5% of £210,000 + £10,000 from the past year). This would average that your house was now worth £221,000, of which you now owned (£221.000 – £170,000) which comes to some £55,100.

Wow! £55 Grand that belongs to you!

Now, let’s do something with this money!

With a good clean credit record after the last 2 years (assuming you had no defaults on your mortgage payments) you could now refinance your house. You could go to your existing lender (if you have a penalty period in your mortgage), or you could go to any other lender and negotiate up to 90% (unprotected to your financial position) of THE NEW VALUE OF YOUR HOUSE.

90% of £221,000 is £198,900. So you can release nearly £30,000 out of the equity in your house. And the best thing about this money is it is totally tax free! No capital gains to pay and no income tax! If you don’t believe me, speak to an accountant.

Many people have in fact done this, but have then spent the money on new cars, boats, holidays and the like, but once the money is spent in this fact, it is gone for ever.

But how about if you went and bought another house, this time as an investment character?

You never know, your friendly developer may be persuaded to give you another gifted place, in which case you could buy several more houses (your only expense being legal fees, broker’s fees, and stamp duty, which on a £200,000 character would come to around £5,000). In this case, with your £30,000 you could buy another 6 houses!

But how do you go about buying all of these houses? And how, if they all have £170,000 mortgages on them are you ever going to meet the repayments. Assuming an interest rate of 5%, that would be about £700 per character per month! £4,200 per month mortgage! Heaven forbid. How would you sleep at night with that level of debt to your name?

Some years ago this would have been impossible as there was no real financial system that would permit an individual to do this. However, now, you can get what is known as a ‘Buy To Let’ mortgage, where lenders will usually lend up to 85% of the character in question, as long as the expected rental income will cover the repayments , plus a bit. The ‘plus a bit’ tends to vary from lender to lender, but you can very quickly get an answer from lenders on whether they will meet the loan. Also, if you are going to get a ‘gifted place’, there are only a few lenders who will offer 85% of the list price, so once again, you will need to use a character club or a broker who is used to this situation.

So, you are now the lucky owner of 6 investment similarities, in addition as your own house.

You also have a commitment to pay 6 investment mortgages in addition, and we totalled that as being some £4,200 a month!

But – you don’t want to have to pay that do you? No! You get tenants in, who very kindly pay the mortgage for you (plus a bit for your pocket and 10% or thereabouts for a managing agent to look after the tenants). You can also take out insurances to cover loss of rent, damage, legal fees on disputes, so it is eminently possible for you to become an ‘armchair’ investor landlord.

However, you now own 6 investment houses, not one. You have already seen how equity can build up in your own house. So let’s look at each of your investment similarities.

If each character was worth £200,000, and you got a 15% gifted place on each one, you are already looking at an equity of some £30,000 in each unit.

If each character increased in value by just 5% per annum, that’s £10,000 from every unit.

Just look what you would be gaining. You would now own a character portfolio of 6 investment similarities worth £1.200,000 of which you would have moment equity of around £180,000, and this would be increasing (at just 5%) of some £60,000 every year. Without compounding this increase, if you sold all of your investment similarities after 10 years, you would walk away with well over THREE QUARTERS OF A MILLION POUNDS!

So, do you nevertheless believe that – in any case the cost – your main objective in life is to pay off your mortgage?

By all method, have this intention – but only after you have made so many other gains that you can really provide this luxury.

This is just one in a series of informative news articles issued by Geoff Morris.

Others include:

• “How to generate an income in excess of £30,000 per annum without leaving your Day Job” • “How to assistance from Off-Plan character purchases and what pitfalls to watch out for” • “How to use a SIPP (Self Investing Pension fund) to grow your portfolio and protect it from the Tax-Man!’’

Other articles can be viewed by just signing up to his character investment page at []

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