How To "Rent-Vest" To Financial Freedom | Big Wealth Hack!

[@cozyrainsounds2639]

I started doing this at age 21 when I bought my first property, to rent. Never made over 90k salary and now at 45 own 36 properties, retired, pays for a luxury big house rental in a top area in Melbourne, the Porsche and helps my parents retirement also. Done right, this works.

[@richardspinks6736]

A lot harder with the current lending rules. Your timing definitely helped you as back in the day the property was used as collateral on your loan not the case today. The buffers banks have in place kill your ability to lend. Well done anyway

[@borajin3553]

@@richardspinks6736

[@samsoares1900]

I’m 34 and I bought my first property at 21 too it was so much easier and affordable back then, so far since then I bought 7. Flipped 3 and keeped 4, I haven’t bought anything in last 4 years just seems so expensive and so bloody hard to borrow.

[@Ben-zv7ph]

What is it like managing that many properties with PM's and finances? You must have a good system. Got any tips?

[@cozyrainsounds2639]

@@richardspinks6736 Actually it’s just as easy. Same old car for 15 years , no holidays and sacrifice. No refinancing to pull equity just paying off and using cash flow to save. After 10 it starts to get a lot easier and it’s snowballs. Buying the right property is key and as I buyers agent also I have helped people achieve 6-10 properties without having to refinance and be in massive debts etc. it’s all about what your willing to sacrifice and your strategy. Anything is possible mate

[@Jim-fz2yr]

Long lines and competition for rentals. Also landlord can force you out. I know people who have had to move rentals 3 times in 3 years. Removalist fees are expensive and huge hassle. Rent money is dead money and equity can be used to buy into investment property.

[@EffectivePhysioKingaroy]

Agreed. At the current situation, this is stupid advice: get kicked off from q or 2 rentals, get is despair to find a place while working and taking care of your family and them tell me that owing a house is bad debt... 5 years that was good advice, not now.

[@PokeHut]

Bond would be considered an upfront cost of renting. Also for comparison purposes it would have been more beneficial to use the same growth percentage rather than 3% / 7%

[@afailable]

Most people buying to live choose areas that are more established and have lower growth potential

[@taso107]

Ravi, you should do the math equally. Why do I buy a PPR and only get 3% capital growth (if i'm lucky according to you), but you buy me an investment property and get 7%. According to you, your investments average 11% over the last 11 years. Why not be totally transparent and have capital growth at 5% for both PPR and Investment scenarios, and then crunch the numbers.

[@dustblowingman]

The rent increases paying for your rent doesnt make sense. When you increase your properties rent your landlord is also likely to increase your rent too which cancels it out.

[@patrickaustralia528]

It is not tax free if you sell the property in the future. ? What do you mean by tax free?

[@zahrababadi6442]

Tax free if you take equity out of it. Not selling for sure

[@LBNOSIN]

I love the idea. But I've found it to be more difficult in the area I wanted to live long term, which is close to family. It was cheaper to buy than it would be to rent when you take into account the capital gains I've got in my area and the rental increases that have happened over time as the area became more popular. Now I have access to equity which I am looking to unlock to buy 1 or 2 investment properties in rural QLD/WA/SA/NSW the next 12 months depending on the value I am able to find these properties.

[@SteveM-lm8sc]

Renting What about a bond as an upfront cost? What about if your landlord decides to sell 6 months after moving in? I don't enjoy moving! What if you moved into a place without solar panels to help offset the potential large energy bills

[@elitechampion]

I think in NSW they've put an end to getting kicked out if it's not your fault anymore, so unless they want to sell or live in it, you're there for life. Solar panels take 4-7 years just to break even (getting longer and longer as the feed-in tariffs keep dropping).

[@jamesm6341]

Can I rent vest with my friend who live down the road? Aka we swap our houses?

[@Warlowisnumberone]

Of course!

[@elitechampion]

This is actually the smartest way to do things. Buy an identical duplex and swap houses with your friend/neighbour to maximise the tax benefits.

[@zahrababadi6442]

I don’t get it! By buying an investment property your loan interest rate is higher and then you have to pay tax on your rental income of that property and then get some of it back as tax return. It doesn’t give you something extra, it’s just paying some of your paid taxes back. Also if you’re a first home buyer you can go stamp duty free/discounted and you can start with 5% deposit and $0 LMI.

[@sonyasj74]

Love your work Ravi. Keep it up. Always look forward to your new videos. Love the joking reference to not having PTSD from your uncle 😂 (i read that comment 😂)

[@PersonalFinancewithRaviSharma]

Thank you! Glad you enjoyed the video

[@sergio_ra]

If you rent-vest, you’ll miss out on all the incentives for FHBs. Would that not influence your strategy?

[@sergio_ra]

Buy, live in it for a year, then move into another rental

[@mattayc]

If you do a new build as an investor the saving is bugger all vs the tax breaks and gains you will make. You only pay stamps on the land not the build. Speaking from personal experience.

[@sergio_ra]

@@mattayc I'm considering an off-the-plan apartment, with just a few months to completion

[@mattayc]

@@sergio_ra the value is in land if I’m honest - apartment’s don’t have the best gains because your not buying any turf.

[@elitechampion]

@@mattayc Agreed, it's all about demand and supply. Apartment supply is unlimited unless you buy next to a station. However, you can never really increase the amount of land supply in an area unless they re-zone a local park or something.

[@mattyttv]

Hey Ravi, You opened by saying “if you are young” What would you say to someone wanting to start in property at say 45-50 years old?

[@dmoo8121]

Contact his team. As he said house you could get a good investment at 300k now it's hard to get one at 400k. Don't want to look back in 15-20 years and be should, coulda, woulda. You don't have to use Ravi, just for own sake do something. Retire on your own terms.

[@cozyrainsounds2639]

You still have time, but you need to move, now. Loans get harder to get approved the older you are also.

[@DREW_BIES]

I wanna sell my property and rent vest 800k to play with

[@simonleonarder3388]

Hi Ravi. I love your content and have learned a lot from you. I live in a rural town less than 20,000 population. It would be nice if you could do a video on buying realestate in small rural / semi rural towns. The town I live in is young NSW.

[@MelbourneTuffCars]

1st 🥇 💪🏻

[@Chris-xu6wy]

@Chris-xu6wy 19 hours ago great information thanks , just wondering if you turn current ppor into investment property and has increased in value for the last 10 years as a ppor , if you turned it into investment property and rented it out now, would the capital gain be calculated from when you turned it into an investment property now and any increase in value going forward or does it go back to when you purchased the property as a ppor?