A "Nutshell" View On How to Become a Millionaire Using the "Smart Home Program"
In "How the Smart Home Program Works" link (2nd box from the top-left) we explain, in detail, how you can realistically become a millionaire or more by using the combined tools of the “Smart Home Program”, Mortgage Savers Program (MSP), buying down a mortgage, tax deductions (tax savings based on property depreciation, mortgage interest deductions, etc) and increased real estate property valuations. If you haven’t read this, please do so, as it will give you a very thorough understanding of how a family can realistically pay off a $240,000 thirty year mortgage in as little as 13.3 years, thereby saving you over $357,569 under similar terms.
Then we took this concept a little further. We analyzed the results if you continued saving the $750 monthly income generated from the "Smart Home Program" for a full 30 year term, even after you paid off the entire mortgage in 13.3 years. We assumed that this shouldn’t be a problem since you had been doing this for over 13 years anyway. By continuing to save $750 monthly, this in effect becomes a planned savings program which by the end of 16.7 years (16.7 yr + 13.3 yr = 30 yr) will net you a total of $150,300 in gross profits. Pretty tidy sum, don't you think? If you were able to invest the ongoing profit in a 5% saving account (or bond), this amount would swell to about $240,395 in 16.7 years.
Lastly, for a super savings program we looked to see what would happen if you continued paying an “imaginary” mortgage of the same amount you were previously ($1,288/mo) for an additional 16.7 years beyond the 13 years when your paid off your mortgage (which would equal 30 years, a standard mortgage term). In so doing, you would realize an extra $258,115. Again, we believe this is doable, because you had been paying this amount previously for over 13 years, so why stop now?. Add the two together.............$258,115 + $150,300 = $408,415. Realize that this amount is pure profit, free and clear, as you had already paid off your house 16.7 years earlier. Also, recognize that this amount is on top of the value of your home, which should accumulate increased valuation as well. Assuming that single family residences appreciate approximately 3% to 10% yearly based on average historic values, your property alone would be worth $468,000 after 30 years (using an average of 6.5% appreciation yearly). Then, if we incorporate the “Smart Home” Savings plan in addition with the property appreciation factor you would have a calculated total of $903,415 ($468,000 + $258,000 + $150,300 = $903,415). For a more exact description of the math used to calculate this amount, see "How the Smart Home Program Works" - link immediately to your left).
This is truly remarkable, for you have almost reached $1 million dollars.
Realize that these calculations do not take account income fluctuations, rising or falling property valuation percentages or economic changes that can take place over the course of the time frames we are looking at. Rarely does life treat us that well that we can count on all going perfectly as planned or expected. Yet, on the opposite side of the coin there is the possibility that one can see greater increases in either “Smart Home” income generation or property appreciation. For example, it is doubtful you would still expect to only receive $750/month income in 15 years from when you first started (which we used for our example). At the same time, property appreciation could surpass 10% yearly as some markets have. California comes to mind as an are area this has certainly occurred. However, we have tried to use reasonable values to depict current trends and history. Based on that criteria, I believe it is reasonable to predict that one could realistically achieve a net worth over $1,000,000 within a 17 to 30 year time horizon. This is a true and wonderful blessing.for housing and wealth generation.