I have received many questions about the term "LAZY $$$$$$$".
Here is an example of the use of LAZY $$$$$ (Unemployed equity) in a PPOR over a 5 year period.
The crux of the matter is:
A $500,000 home will increase in value over.......5 years at 5% by $138,141
A $500,000 home will increase in value over.....10 years at 5% by $414,447
By utilising the Lazy $$$$'s the gain could be......5 years at 5% by $355,442
By utilising the Lazy $$$$'s the gain could be....10 years at 5% by $884,332
See the attachment for spreadsheet details.
Regards,
Steve
Here is an example of the use of LAZY $$$$$ (Unemployed equity) in a PPOR over a 5 year period.
The crux of the matter is:
A $500,000 home will increase in value over.......5 years at 5% by $138,141
A $500,000 home will increase in value over.....10 years at 5% by $414,447
By utilising the Lazy $$$$'s the gain could be......5 years at 5% by $355,442
By utilising the Lazy $$$$'s the gain could be....10 years at 5% by $884,332
See the attachment for spreadsheet details.
Regards,
Steve