Now, imagine turning the equity in your home into life-changing fortune

or rethinking what retirement could look like. Unbelievable. Now,

if you can stomach selling your home to

do this, this could set you up obviously well into

retirement. So when I say 29% is the compounding interest rate

for Bitcoin, that's over the next 10 to 20 years. Michael

Saylor, the Bitcoin evangelist, that's his prediction. Should

you sell your home to buy Bitcoin? I

know what you're thinking, your jaws just dropped to the floor. This is so, so

emotive for people because I'm Matthew Fraser and this

is Crypto Collective. After making millions with Amazon and

e-commerce, I realized that if I was starting again today,

crypto would be my first choice. I'm here to help

you take your first steps and build real wealth. Ready

to set yourself up for life? Let's go. Hey

guys, welcome to Crypto Collective. My name is Matthew Fraser. And

in this episode, well, let's just say it's going

to be highly, highly debatable. And that is,

should you sell your home to buy

Bitcoin? I know what you're thinking, your jaws just dropped to the floor. This

is so, so emotive for people because As

you can appreciate, your home is your castle. But

I want to tell you a story about a friend. And look, just to say he's

not doing so well financially. He's in his 40s, and he's realized that

by the time he retires, he's not going to have enough to retire

comfortably. And if you looked at some of the numbers, that

even you know channel 9 news or even the superannuation funds

are putting out it's pretty dire right you're not going to have enough and

now this is not going to be for you if you want to live on the old

age pension if you think that's going to be great then you can skip past

this video but if you're thinking that you want to have a little bit more

in the kitty and live a comfortable lifestyle like maybe you

want to go to dinner like maybe twice a week or

maybe you want to go on an overseas holiday once a year, then this

will be for you. Because according to the superannuation funds

or the superannuation industry, for you to retire comfortably, you're only

going to get an overseas holiday once every seven years

and an occasional dine-out meal, which means like once a month. So

that to me is a travesty. It's actually embarrassing for Australia.

So listen to this episode because I think you're going to find it

really, really powerful. So today we're going to be tackling one of the biggest

financial decisions you might face and that's whether to stick

with your property or dive into the potential

of Bitcoin. Now imagine turning the equity in your home into life-changing

fortune or rethinking what retirement could

look like. If you've ever wondered which is the smarter play for

building long-term wealth, this episode is going to

blow your mind. So let's dive in. Okay

guys, so my friend, as I mentioned, he's in his 40s and

he's not going to be looking good for retirement. He's not looking good at all.

And so I just said to him, look, what's your house? Because I knew he had an owner-occupied home.

And he said, oh yeah, look, it's about $1.2 million, and he's got a

mortgage of about $750,000. To me, just quick

numbers, he's got about $400,000 in available funds

if he was to sell his home. Now, you might say, well, why

doesn't he just keep the home? and just borrow

against it. Now, his loan is actually too big to do that. So let me just give you

the quick numbers. Now, just so you know, I actually used to be a mortgage broker. I know

I peeled the layers back. A mortgage broker back in my 20s,

right? So it's been a long time. But the fundamentals are

the same. So $1.2 million is the current value. Now,

the bank's going to lend you, you could get up to 90% on

your own, your occupied home as a refi. So it's $1.6 08 million

minus the 750. Look, that's going to give

him $330,000. So this could be an

option. Now, unfortunately for my friend, he doesn't

have the servicing to get the bigger loan. Okay, now what

does that mean? It means that the bank won't give him the extra

funding limit. Okay, he's capped at the moment at the 750. And

the reason why is because right now in Australia, the interest rates

are by all measures kind of considered quite high. So

he's borrowed up initially up to the maximum that he

could get, then the interest rates went up. Now, the bank is not going to

come in and take the mortgage away from you, right? As long as you just make the repayments, they don't care.

But if he was to go and get the same mortgage today, brand new, he

couldn't get it, right? So therefore, he's definitely not going

to be able to get up to that $1.08 million loan,

okay? That way, he could keep the property. So we have to take that

into account. So the only way right now he can tap into

the $400,000 that's sitting in his home

equity is to sell the house, okay? Most

people are not going to do that, okay? But I

want to show you the numbers of what the potential gains

could be and I'm telling you, it could be

life-changing, okay? So just have a look at it, go with me through the

numbers and then you can decide after that. So let's jump

into the computer, look into this spreadsheet, and first of

all, let's just see if he was to stick with the

property, right? Just kept the property because most people in Australia look

at their owner-occupied home as their greatest asset. And

most people think that, you know, aside from their super, and as I mentioned

before, he doesn't have much super, most people think that their own

occupied home is going to be their retirement plan, whether

they sell that property and downsize and take the

difference. And that could be something for you as well. But let

me go through these numbers again. So what I'm going to say though is we're going to start at $1.2 million

and let's see what the property is going to be worth in 10 years. So

I'm going to switch over to my compound interest calculator. Now,

I strongly suggest you get your compound interest calculator app.

They're absolutely brilliant. You can follow along. We're going to start

at $1.2 million. OK, so in 10 years time, this property is

expected to be worth, let's just round it up to

$2.4 million. Now, theoretically, in

10 years time, let's just say he hasn't paid a single cent off the mortgage,

right? So he's still got $750. So therefore, you would argue that

he's still got now, he's got a lot more equity. Let's say

$2.4. So he's going to have $1.65 million in equity in

that home. And you're going to think, that's fantastic. Which

it could be. Let's see what it looks like in 20 years time. So

the house in 20 years time is expected to have a value of

$4.8 million. And again, minus the 750, he's gonna have about $4 million

of available funds, but that's only if

he sells the property, okay? And in

20 years time, I've seen some very interesting numbers, but as

far as what you might need to have in super, you might find that $4 million,

let's say you'd sold the property and you downsized, you

might have to buy still a maybe a three million dollar unit

or something so minus the current debt of 750 you're only going

to have really a million dollars and a million dollars when you retire is

not going to be enough okay it sounds like a lot now but it's not going to be in 20 years

time so Let's see what it would look like

if he sold his owner-occupied property for $1.2 million.

He took the $400,000, the leftover money, and put it

into Bitcoin. Okay, now yes, he's now going to

have to go into the rental market. I understand that. But let's

just see what the numbers work out. So

when I say 29% is the compounding interest rate for Bitcoin, that's

over the next 10 to 20 years. Michael Saylor,

the Bitcoin evangelist, that's his prediction. And

that's a base case of 29%. Now let's

say it's going to be that $400,000 is going

to turn into $7.2 million.

Just that number alone, you can see he's basically

nearly $3 million up on his property. what

it would look like in 20 years time. Oh,

this just smokes it. $130 million. What

more can I say? Let's just say that he was renting for 10 years, OK?

Now he's got $7.2 million of Bitcoin. Two

options right now. One, he sells all of the

Bitcoin. He takes the $7.2 million. He's got to pay some capital gains

tax now. Let's just say he's left with ballpark $4 million

or $5 million, OK? He could take that $5 million now and

go and buy a property. But the problem is, remember, he

needs this money for retirement. The problem wasn't

initially that he needed to buy a house. He needed some money for retirement. So

he could sell $7.2 million worth of Bitcoin. He's

got $5 million now in his pocket. He could go and buy a

property, let's say, for $2 million-odd, and he's

got now $3 million of cash, okay? Now, as

we know, cash is trash and cash

is now being devalued by the second to the rate of probably 15% per

annum. So putting it in cash is going

to be a bad decision. He would still have to take that $3 million and

put it into another asset to keep it growing for when

he retires by the time he gets to 20 years down the track. so

in my opinion selling the bitcoin would be a bad decision

what he could do though is he could borrow against the

bitcoin okay and this is really powerful he

could keep the 7.2 million dollars worth of bitcoin and

borrow $2 million only against

the Bitcoin, and then buy a $2 million property. So now he's

out of the rental market. He's now got his own Rocky Pie property, which

he has now paid cash for. And because he didn't sell the

Bitcoin, he now doesn't have to pay that capital gains tax. And

by keeping the Bitcoin, if he holds it now all the way through to

20 years, he's got $130 million worth

of Bitcoin. And his property by that time is probably going to be upwards of

$4 million value. So that, in this

scenario, would be the perfect example of

how he could utilize Bitcoin, still buy his owner-occupied property

within another 10 years, and then have $130 million basically

to spend for his retirement. Now I've just given you the numbers based

on 29% but many people think that the average compounding interest

rate is going to be closer to 50% so this is more on the better

case scenario and keep in mind that Bitcoin has already

done over 60% compounding growth rate over

the last decade and over 50% in

the last four years. This year alone, it's been over 100%. So

when I say 50% over the next 10 to 20 years, it's

not airy-fairy number. It's already done those numbers. Let's

have a look. So

at 50% 10 years time, we're going to have a value of Bitcoin of $57 million, right?

And then in 10 years time, it would move to $8.4 billion. Unbelievable.

Now, if you can stomach selling

your home to do this, this could set you

up obviously well into retirement. But I'm

going to make you think about something even more powerful. What

if you could set up generational wealth. At

this last scenario of 50%, look, even the 29%, if

it got to $130 million, that's an incredible head

start for your children, for your grandchildren, and

your grandchildren's children, right? This is what we

call generational wealth. $8.4 billion is obviously going to kill it.

So if we ran this same scenario in

10 years time, he came to, actually, I'm going to add another number in

here, right, just to see what would it look like in

5 years time, right? In 5 years time, I'm just going to put it

out here, it would be $4.8 million

would be the value of Bitcoin in 5 years. So in this scenario

here, You could actually, within five years, even

go back, borrow against the $4.8 million, and

buy even another $1 or $1.5 million home. That

could be an option to get out of the rental market and still retain the Bitcoin.

Because if you sold all the $4.8 million after five

years, you wouldn't then see the $57 million in 10 years,

and you certainly wouldn't see the $8.4 billion in

20 years. So you've got to understand what is the lost opportunity if

you were to liquidate all of the Bitcoin. Not only would you have to pay the

capital gains tax, but you're going to miss out on the future growth as well. Okay

guys, so now I've been through a scenario of actually selling your

home and my mate is contemplating it. I can't say

that he's actually doing it at this point but we've certainly run the numbers and

he's very interested and again, like I have mentioned before,

you've got to bring your other half along with you. If you're single, and

this is your decision then that's fine you can make it obviously on

your own but if you've got a family then you've got to bring them

along as well and obviously there's some implications whether there's children things

like that but children are pretty resilient you know if it means just from moving

from an owner occupied home into a rental property i'm sure they're going to be fine

considering what could be the potential growth for their future

by creating generational wealth with Bitcoin. Well, let's look at a different scenario, okay.

Let's say you're a little bit older, you're over 60 years

old, perhaps you're on the pension and you would

love to realise some Bitcoin growth as well. Maybe

it's for yourself or maybe it's for your children or your grandchildren

as well. And you've got a property. Now, what I want to

talk about is potentially using a reverse mortgage to

tap into Bitcoin. Okay, now this again, not a common thing.

However, I do know someone who's in our community, the crypto

collective community, who has actually done this. And I

helped him step through the processes of how to do

that. And so in this particular scenario, we're going to look at reverse

mortgage in the sense that now what you can do with the advantages with a reverse mortgage is

you get to keep the property. Okay, you're not selling the property. And The

other advantage with reverse mortgage is you don't make a repayment. So

most people, if you borrow against your property with

a bank, you have to make an ongoing weekly or monthly

repayment. With a reverse mortgage, what happens is the interest that

is charged to you is capitalized, which means they just keep tacking

it on top of the loan until ultimately you

die, the property is then sold and the money paid back to the

institution, or you just pay out the

loan. Okay, you can do that as well. So in this scenario, what the gentleman did

was he took out a $100,000 reverse mortgage.

Now, I want to just put something else in this story

and that is that if you go to a reverse mortgage company and say, I want

to borrow $100,000 for Bitcoin, it's going

to be a big fat no, right? Australian banks and

financial institutions have not caught up with

what is happening in other parts of the world, even right now in America. there

are companies that will lend you money against Bitcoin to go buy property because

they've now gotten onto the fact that Bitcoin is the hardest asset,

it's the best performing asset, it's easy to manage because of

course if you don't make your repayment they're holding your Bitcoin so they can just

take the Bitcoin And they're good. They don't have to go and sell a property to get

their money back. So they're cottoning on. And I think within the next sort of five years plus,

maybe up to 10 years, Australian banks will start coming on

board. And just as a side note, I noticed that just in

recent days, AMP in Australia, superannuation company, has

actually bought $27 million worth of Bitcoin to help with their

company, their profits into the future. So let's dive

into the numbers of the reverse mortgage. Now, you'll find reverse mortgage

interest rate is significantly higher than just borrowing

for a standard mortgage. So standard mortgage in Australia right now is probably somewhere

around the 6.5% to 7%. Reverse mortgage

is going to be somewhere around probably 13% to maybe 15%. So

let's just say we'll use, in this case, 15%. Now

what I want to do is compare what is the cost

of that reverse mortgage compared to if I bought Bitcoin.

So I'm going to get my compound interest calculator out. Now remember, There

are no repayments on the reverse mortgage. Oh, and just to cover up something else.

So I mentioned before, you can't say to the lender that you're going to

go buy Bitcoin. But what you can say is you're going to buy a caravan,

a car, renovations. They love that stuff, right? You're allowed

to go and sort of blow it on whatever you want, but you're not allowed to

invest it. It's ironic, isn't it? So let's

say $100,000, 10 years. Let's use 15% interest. I'm going to go the higher side. So

what is the mortgage going to look like? Your mortgage is going to be upwards of

$450,000. That's what

you now owe to the reverse mortgage lender. Now,

let's see what it looks like in 20 years, if you held it

that long. It'd be $2 million. Okay,

now let's say you've borrowed the reverse mortgage,

same amount of money, okay, but you've now put this into Bitcoin. What

is the Bitcoin performance going to be? On $100,000, at 29%, we'll use that number again, over

10 years, it's going to be $1.8 million. So

what you have to look at here, is it worth doing? Now, straight away,

you can see that the $1.8 million is significantly higher

than the $450,000 that is owed to the reverse mortgage company.

So you've got to think about, it's not so much the interest that you're paying. It's just,

is the investment you're making going to outperform the cost? And

in this case, it is. over 20 years, that's

going to take it up to $32 million. So

even though you owe $2 million worth of

basically interest and the $100,000, you've got

$32 million. So you're up $30 million in 20 years. Now,

if you're 60, you're going to now be 80 years old. Now,

80-year-olds these days, they're

living longer than that, right? When you get to 80, you've probably still got 10 to 15 years

still to live. Okay and who knows what type

of lifespan people will have in another 20 years with

the advancements of medical interventions and what have you. Let's

have a look at those same numbers though now but let's use the 50% compounding

interest rate and I think obviously it's going to be a lot higher but let's just have a

look. What is the potential? Well

after 10 years the potential of Bitcoin is going to be up now 14.5 million.

And in 20 years time, it's going to be $2 billion.

This is incredible. This is something that people

can do today, right? This is the type of thing you can do today. This

type of reverse mortgage loan is available right now. Even

at 15%, it seems scary, right? But there

is no repayment and you don't even have to pay this loan back at all if you don't want

to. But let's say you wanted to, okay? You're

like, I don't want to pay the 15% to this reverse mortgage company. That's

totally fine. Let's look at the 29% Bitcoin scenario.

So in 10 years time, you've now got $1.8 million worth of Bitcoin. You

could do one of two things. You could sell $450,000 worth of Bitcoin and pay

back the $450,000 mortgage. That's totally feasible. Or you could borrow $450,000 against your $1.8 million of

Bitcoin and pay off the reverse mortgage. And

the interest difference is, because now you've borrowed against your Bitcoin, Bitcoin right

now is about 10% interest rate per annum. So you're now up

5% per year. So that would be something that you could easily do. Then

what's happened is you've now removed the mortgage completely off your home.

So there's no debt on that whatsoever. and you still get

to keep the $1.8 million as it now, in this scenario, goes through to

potentially $32 million in 20 years time. So, you're going

to say to me now, well, Matthew, that's all great, but, you know, what if, you

know, I'm in my retirement, I don't have any children or I don't care about leaving a

legacy to them, I just want to use the money myself. Absolutely. In

10 years time, when you're now 70 odd

years old, you've still got lots of life to live. You could liquidate all

your Bitcoin of $1.8 million, pay back the $4.5 million, and

you're still left with about $1.4 million. Or if it does the 50% growth

rate, It could be really exciting. You

could sell $14.5 million worth of Bitcoin and start,

you know, traveling the world, right? You'd go on a holiday like every month, okay?

Money would not be your problem, okay? You could even give

up the old age pension now. Wouldn't that be something, hey? Tell

the government, you know, thanks very much but I don't need this anymore. So there

you go, guys. That is it when it comes to Bitcoin versus

property. Again, just more things to think about. I'm

not saying any particular way is the right way or the wrong way.

But in a day and age right now where people don't really understand Bitcoin,

certainly not how it can be utilized with property, this,

I hope, helps give you some ideas of how you could help you utilize

your property and create generational wealth for

you and your family into the future. Because obviously, Bitcoin

will significantly outperform property. All right, if you've got any questions, please

leave them in the comments. If you need any more information about this, you

can always jump into my online Crypto Collective community.

It's absolutely free. Find the link somewhere in the description. Look

forward to seeing you there. Take care. Thanks for tuning in to Crypto Collective. If

you've enjoyed this episode, the best way to show your support is to leave a

five-star review on Apple Podcast or Spotify and

make sure to subscribe to the YouTube channel so you don't miss an episode. You

can also find more of me at I'm Matthew