I enjoy flip primary residence on 7 year cadence. After these years, land value goes up, the house gets improved with my DIY renovation skills. When selling, any capital gain is tax free. Also I want to be able to do what ever sensible to improve the house I live in. If it is a rental, I’d be stuck with basic stuff which I don’t prefer. You know as a landlord you only ensure barely minimum living standards, rather than give your tenant a luxury life at your cost. Btw, I am permanent employee so I can’t trade my spare time with my professional skill
Nice one mate, We’ve done the rent-vesting thing for years and it works well… We’re in our PPOR now, however might actually consider doing the rent-vesting thing again soon as we want to move again :) Great Video
Thanks Grant appreciate you watching - yeah I rentvested for the last few years and then bought our family home 1 year ago. But we’re back doing essentially the same thing again, just buying regional property. The family home might not be a big money maker but the quality of life benefits have been great and I’ll keep growing my regional portfolio as I was before
Great video. Explanation feels very 'down to earth', which is suitable for me. I'm nearing my first purchase of a property and I'm torn between PPOR (Apartment) vs Renvesting (Apartment + IP in different state). I'm in Sydney. I've done some calculation on Excel to factor in Mortgage, Fees related to purchase, Living Expenses and Rental profit based on ~ 5% rental yield and the overall weekly expense I would be paying for PPOR and Renvesting are on par. I guess the only real benefit in this scenario is to see a good property growth on whatever option I choose, but I'm skeptical whether Sydney has seen the end of its growth (I know a lot of people that are still very optimistic about Sydney compared to other cities). I'm also worried that if I rentvest, my IP does not get rented out for months and I must folk out money to afford both my rent + mortgage for IP. Did you have this sort of issue when you first began ? Do you think if you purchased in Sydney, there would have been a more significant growth compared to your regional property?
Thanks for watching mate - so in regards to the investment property, ideally you find an area that has low vacancy rates (under 3% is good and under 2 or 1 is even better). This means you should be fine getting it rented out. Ultimately you can always reduce the rent until you find someone which you very likely would, so I'm not usually worried about renting it out, I'm not gonna buy somewhere with high vacancy rates and heaps of new homes coming on the market. Also - if you can buy a cheap house instead of an apartment (where you don't own the land) you usually will make more money long term, all other things being equal If I purchased in Sydney I would have done well due to the recent boom (not sure anyone would have predicted it to go this good). That said my regional properties also performed excellently so I'm not bothered. I might still end up buying a family home in Sydney potentially, see how prices are and what homes are on the market
Really well explained! I think it's a strategy that is well suited to those that aren't fussed on settling in one spot long term. I think that's also a great point you raise about the town/city you live in isn't always going to be the best place to invest!
Have a question. Firstly thanks for this video. I'm new to this and looking to get into the market regionally. My question is do you find it difficult with maintenance of the property living so far from it?
Hi Anika, thanks for watching the video - no not at all. So you just pay a property manager who is local. You can pay different rates but I pay approx ~7%+gst of weekly rent for them to manage (which is easily worth it). I haven't been in person to any of my investment properties, and may never actually go there. They handle inspections, any maintenance under $100ish they will just action it without asking me (so they don't bother me for minor things). They will find tenants and list it if the tenants move out. I mainly speak to them if there's a more expensive repair needed and we get multiple quotes etc.
I'm looking at either buying my first investment property with 90k down or opening a stockspot account. Which way do you think i should go? Probably mid to long term hold on either, 5-10 years.
Either will probably work out well Stockspot are great, it’s very hands off and hard to stuff it up. Property can be great, either do lots of research yourself or maybe consider a buyers agent (thats what I did for my first few properties while I was learning) I do both to be honest, I started with Stockspot cause it was a lower barrier to entry Not financial advice of course as I’m not qualified etc
@@raycorc Thanks mate. I'm in same boat like yours where Sydney market is off my budget so rather than settling (also compromising) far from city for live-in house, me and my partner decided to do rentvesting. I'm still new in this so might leverage buyer agent or burn lot of energy on research for first investment. Thank you so much all the videos and keep up the good work.
I enjoy flip primary residence on 7 year cadence. After these years, land value goes up, the house gets improved with my DIY renovation skills. When selling, any capital gain is tax free.
Also I want to be able to do what ever sensible to improve the house I live in. If it is a rental, I’d be stuck with basic stuff which I don’t prefer. You know as a landlord you only ensure barely minimum living standards, rather than give your tenant a luxury life at your cost.
Btw, I am permanent employee so I can’t trade my spare time with my professional skill
Nice one mate, We’ve done the rent-vesting thing for years and it works well… We’re in our PPOR now, however might actually consider doing the rent-vesting thing again soon as we want to move again :) Great Video
Thanks Grant appreciate you watching - yeah I rentvested for the last few years and then bought our family home 1 year ago. But we’re back doing essentially the same thing again, just buying regional property. The family home might not be a big money maker but the quality of life benefits have been great and I’ll keep growing my regional portfolio as I was before
Great video. Explanation feels very 'down to earth', which is suitable for me.
I'm nearing my first purchase of a property and I'm torn between PPOR (Apartment) vs Renvesting (Apartment + IP in different state). I'm in Sydney.
I've done some calculation on Excel to factor in Mortgage, Fees related to purchase, Living Expenses and Rental profit based on ~ 5% rental yield and the overall weekly expense I would be paying for PPOR and Renvesting are on par. I guess the only real benefit in this scenario is to see a good property growth on whatever option I choose, but I'm skeptical whether Sydney has seen the end of its growth (I know a lot of people that are still very optimistic about Sydney compared to other cities). I'm also worried that if I rentvest, my IP does not get rented out for months and I must folk out money to afford both my rent + mortgage for IP. Did you have this sort of issue when you first began ? Do you think if you purchased in Sydney, there would have been a more significant growth compared to your regional property?
Thanks for watching mate - so in regards to the investment property, ideally you find an area that has low vacancy rates (under 3% is good and under 2 or 1 is even better). This means you should be fine getting it rented out. Ultimately you can always reduce the rent until you find someone which you very likely would, so I'm not usually worried about renting it out, I'm not gonna buy somewhere with high vacancy rates and heaps of new homes coming on the market. Also - if you can buy a cheap house instead of an apartment (where you don't own the land) you usually will make more money long term, all other things being equal
If I purchased in Sydney I would have done well due to the recent boom (not sure anyone would have predicted it to go this good). That said my regional properties also performed excellently so I'm not bothered. I might still end up buying a family home in Sydney potentially, see how prices are and what homes are on the market
Really well explained! I think it's a strategy that is well suited to those that aren't fussed on settling in one spot long term. I think that's also a great point you raise about the town/city you live in isn't always going to be the best place to invest!
thank you mate!
Might need to move to ADL
@@raycorc Definitely a cheaper cost of living!
Thank you sir…got a lot out of that
you’re welcome mate, thanks for watching!
Have a question. Firstly thanks for this video. I'm new to this and looking to get into the market regionally. My question is do you find it difficult with maintenance of the property living so far from it?
Hi Anika, thanks for watching the video - no not at all. So you just pay a property manager who is local. You can pay different rates but I pay approx ~7%+gst of weekly rent for them to manage (which is easily worth it). I haven't been in person to any of my investment properties, and may never actually go there.
They handle inspections, any maintenance under $100ish they will just action it without asking me (so they don't bother me for minor things). They will find tenants and list it if the tenants move out. I mainly speak to them if there's a more expensive repair needed and we get multiple quotes etc.
I'm looking at either buying my first investment property with 90k down or opening a stockspot account. Which way do you think i should go? Probably mid to long term hold on either, 5-10 years.
Either will probably work out well
Stockspot are great, it’s very hands off and hard to stuff it up.
Property can be great, either do lots of research yourself or maybe consider a buyers agent (thats what I did for my first few properties while I was learning)
I do both to be honest, I started with Stockspot cause it was a lower barrier to entry
Not financial advice of course as I’m not qualified etc
@@raycorc Thanks man! For sure, i just like to hear people's thoughts and approaches. Lots to learn :D
Who are some buyers agents you follow?
Hi Rani, for residential I like the stuff by Propertyology and for commercial I like Rethink investing 👍🏼
Can you recommend which agent buyer you are with?
G’day Amit, I used a company called Propertyology in Brisbane (I’m in Sydney)
They’ve been good, have used them 3 times
@@raycorc Thanks mate. I'm in same boat like yours where Sydney market is off my budget so rather than settling (also compromising) far from city for live-in house, me and my partner decided to do rentvesting. I'm still new in this so might leverage buyer agent or burn lot of energy on research for first investment.
Thank you so much all the videos and keep up the good work.
@@amitgodse you’re welcome mate thanks for checking out the video!