The Cashflow Accelerator Effect

How Property Development Helped Me Clear My Mortgage And Transform My Finances

Imagine waking up one morning, logging into your bank account, and realising that the mortgage you’ve been paying for years is finally gone.

No more payments to the bank, no more interest stacking up, and best of all, the money that used to drain out of your account every month now stays with you.

This financial freedom didn’t happen overnight, but it didn’t take decades either. In my case, it resulted from small-scale property development—a strategy that cleared my mortgage and created an instant payday.

Let me tell you how it unfolded and the powerful concept I call the "Cashflow Accelerator Effect."

The First Deal: A $447,000 Milestone

It started with a single deal. I had been dabbling in small-scale property development, learning the ropes, and refining my strategies.

Then came the opportunity that changed everything.

This deal produced $447,000 to put towards my mortgage.

The feeling was euphoric. Nearly half a million dollars for mortgage reduction. But I wasn’t done.

The Second Deal: Mortgage-Free 

My second deal banked an additional $183,000.

Combined with the first deal, this completely wiped out my mortgage.

After years of paying, planning, and hustling, I was mortgage-free. But the financial relief wasn’t the only incredible part.

The Cashflow Accelerator Effect: Instant Payday

Here’s where the magic of the Cashflow Accelerator Effect kicks in.

Before I cleared my mortgage, a chunk of my income disappeared each month to cover the mortgage payment.

It was just part of life—something most of us take for granted.

But now, that money stayed in my account. It was like receiving an instant payday.

Suddenly, the money that would’ve gone to the bank to pay down my mortgage became available for other things—investments, savings, or even fun expenses.

My cashflow accelerated dramatically. Instead of feeling like I was just keeping up, I now had surplus income flowing in.

That’s the beauty of clearing your mortgage early through strategic investments. It’s not just about paying off debt; it’s about freeing up cash to do more.

5 Steps To Achieve the Cashflow Accelerator Effect Through Property Development

Let’s see how you can do the same through property development.

Step 1: Identify the Right Development Opportunity

To succeed in small-scale property development, start by identifying the right opportunity. Look for:

• Suburban Areas with Growth Potential: Research areas with strong population growth, job opportunities, and good infrastructure. 
• Development-Ready Properties: Look for properties with potential for improvement, such as:
• Subdividing a larger block into smaller lots.
• Renovating older homes to add value and subdividing off the backyard.
• Adding a granny flat or secondary dwelling to increase rental income.

Local councils often have planning guidelines available online, so check these for zoning rules and land use regulations.

Step 2: Do the Financial Planning and Feasibility Study

Before committing to any project, conduct a thorough feasibility study.

You want to ensure that your development costs are significantly lower than the potential sales price.

• Budget Planning: Calculate how much you need to invest in purchasing the property and carrying out the development. Factor in costs like stamp duty, design, build costs, legal fees, council approvals, and marketing expenses when selling.
• Project Timeline: Set a clear project timeline. Some development types (like adding a granny flat) are faster than others (such as subdividing and selling). The quicker the turnaround, the sooner you can get paid.
• Financing: If you still have a mortgage, consider refinancing options to fund your development project. Some Australians use equity in their home to fund their first development which is how I did my first deal.

Step 3: Execute the Development

Once you’ve acquired the right property, it’s time to execute. Depending on your strategy, this could involve:

• Renovating for Resale or Rent: Focus on strategic renovations that offer the most value for money. In Australia, upgraded kitchens, bathrooms, and outdoor areas like decks or landscaping can deliver a higher return on investment.
• Subdividing Land: If the property has a large block of land, subdivision can be an effective way to create new, smaller lots that can be sold separately. Many councils in Australia are encouraging higher-density housing, so research local guidelines around subdividing.
• Build one or more New Dwellings: Adding a new dwelling on the subdivided land can boost your profits and if you are keeping it as part of your wealth creation strategy, can quickly increase your rental yield, particularly in high-demand suburbs. 

Step 4: Sell or Rent for Maximum Gain

Once the development is complete, you have two main options:

• Sell the Property: Selling after development allows you to cash in on the capital growth immediately. This can result in a lump sum that you can use to pay down your mortgage or other cash flow needs.
• Rent the Property: Alternatively, renting the property creates an ongoing income stream. In some cases, you might do a mix—renting part of the property (e.g. the granny flat) while living in or selling the main home.

Step 5: Apply the Cashflow Accelerator Effect

After selling the developed property or refinancing based on the increased value, you can use the profit to either:

• Pay Down Your Mortgage: This step allows you to reduce or completely eliminate your mortgage, depending on the deal size.
• Reinvest in Future Projects: You can use the profits to reinvest in future development projects to continue building wealth.
• Other Cash Flow Options:  You can use the profits for other cash flow options such as investments, household expenses or fun expenses.

This newfound financial freedom can be reinvested, saved, or used to enjoy life more fully.

Why You Should Consider It

If you’ve been wondering how to break free from the grind of mortgage payments and take control of your financial future, small-scale property development might be the answer.

It’s accessible, it’s manageable, and it works.

Best of all, it puts you on a fast track to financial freedom.

The key to unlocking this potential is in the deals themselves—finding and executing projects that yield significant returns.

It takes strategy, patience, and effort, but as my experience shows, the rewards can be extraordinary.

Whether you're already involved in property development or just starting to explore your options, remember: the Cashflow Accelerator Effect is real, and it’s powerful.

Let our Success Coach help you work out if this strategy is right for you. Click here to book your first FREE Action Takers Success Call with us!

Found this Article Useful?

✦ Send this to a friend.

✦ Work with Rising Star? Book a FREE Strategy Call with one of our Success Coaches today!

✦ Want to learn more? Here is a Free 30 minute training to learn the most lucrative property strategy that changes lives.