Love it as always Ravi. Would love a video about how to liquidate equity once you want to leverage it as passive income. With the 5 properties example here, how do you liquidate to use the cash on your living expenses? Thanks
You’re right! Compounding wealth is so essential. My first investment property did grow substantially within up and coming suburbs with immense growth. Better to purchase in areas that are primed for regional parts i.e Queensland. I’m curious if it’s possibly to leverage $175K worth of equity in property #1 in purchasing properties #2 and #3 under $420K. What’re your thoughts?
Well the first prices that seem to rise are properties and thus rental yield, well before increase in wages. Also since at least a third of net pay goes into rent and even more in mortgages then owning and renting properties saves even more since those expenses are now frankly obsolete!
I guess the issue I have, is that sort of "everyone" is doing this these days. With 35% of people renting, clearly not everyone can be expected to be successful at this. In fact, it's likely only a minority will be successful. I'm wondering if the whole price to income situation will come crashing down at some point. Not trying to be a property nah-sayer, but the whole situation seems to be madness right now.
Hold for sure, it’s probably still got some legs left in it before it peaks in price in the short term. As for long term, you could use this equity to purchase another property. Wait til that property goes up in value, rinse and repeat
@@spara7464 good in theory, I am in that position. Purchased an investment property in 2020 and has doubled in value. I have plenty of equity, but borrowing capacity is now my issue. Can’t move forward
Real estate is the only asset that you don’t own (the bank technically does) and can borrow off the equity. The tenant will pay the bills on your asset and then your asset is worth 2-3 times what you bought it for and you’ve bought 3 or more houses after this that have also increased in value
Love it as always Ravi. Would love a video about how to liquidate equity once you want to leverage it as passive income.
With the 5 properties example here, how do you liquidate to use the cash on your living expenses?
Thanks
You’re right! Compounding wealth is so essential. My first investment property did grow substantially within up and coming suburbs with immense growth. Better to purchase in areas that are primed for regional parts i.e Queensland.
I’m curious if it’s possibly to leverage $175K worth of equity in property #1 in purchasing properties #2 and #3 under $420K. What’re your thoughts?
You need to take into account inflation as well. That 65-75k won't be worth the same in 10-20 years
True!!! I have made my passive income goal to be 200k
That is why passive income should not come from simply 1 asset class but from multiple !
Well the first prices that seem to rise are properties and thus rental yield, well before increase in wages.
Also since at least a third of net pay goes into rent and even more in mortgages then owning and renting properties saves even more since those expenses are now frankly obsolete!
What if I am able to buy a property for a good price in an area I like, and live in it? Is rentvesting still better in that case?
How about a method that doesn’t screw other people from a basic need like shelter
10:55: Indeed Ravi, 5 properties.
With 35% of Australians renting, not many people can own 5 properties...
I guess the issue I have, is that sort of "everyone" is doing this these days.
With 35% of people renting, clearly not everyone can be expected to be successful at this.
In fact, it's likely only a minority will be successful.
I'm wondering if the whole price to income situation will come crashing down at some point.
Not trying to be a property nah-sayer, but the whole situation seems to be madness right now.
quality content here
Hi I have questions I got my house in 2020 for 400k I can sell it now for 700k not sure if I should sell or hold it? I'm in Perth Yanchep
Hold for sure, it’s probably still got some legs left in it before it peaks in price in the short term. As for long term, you could use this equity to purchase another property. Wait til that property goes up in value, rinse and repeat
@@spara7464 good in theory, I am in that position. Purchased an investment property in 2020 and has doubled in value. I have plenty of equity, but borrowing capacity is now my issue. Can’t move forward
First view 🤟 thank you for sharing your knowledge Ravi
Only way is to invest in Australia, but go live another country.
You are a gun.
Macquarie bank is offering
5.50 % so why would you bother with real-estate ?
I borrow money at 6% and get my Tennant to pay for it via yield. I then get the equity for fee...that's y I bother. It's free !!
Real estate is the only asset that you don’t own (the bank technically does) and can borrow off the equity. The tenant will pay the bills on your asset and then your asset is worth 2-3 times what you bought it for and you’ve bought 3 or more houses after this that have also increased in value
did you watch the video he literally explained why
This sh!t has ruined australian quality of life for many people
@ 🤡 that’s a wild thing to say
@@Itsokay.nottobeokaaaay hope you have Made enough money to buy homes for your children/grandchildren
Ben chodes