Did you know that,
Despite what you’d probably think…
I’m currently rent-vesting.
Following the recent surge in asking rents in my area,
I’ve been weighing my options and have been considering buying a principal place of residence.
Now, knowing me…
You can only imagine how many hours I’ve spent trying to crunch the numbers on all of the “Rent VS Buy” calculator sites.
So…
While trying to calculate the best yielding arbitrage opportunity…
I realised that despite having similar mortgage repayments,
The ongoing costs and maintenance items were lower as a renter.
Not only that, but…
Renting allows me to fully utilise the various tax deductions only available to investment properties.
However…
I’m sure you’ve heard of the 14 year rule…
“After 14 years of renting, you would have been better off buying”
This becomes especially relevant when you consider the tax-free status of a principal place of residence, as well as the opportunities to refinance and extract equity in the future.
Unfortunately…
The 14 year rule doesn’t portray what would happen if you were to invest the difference.
Now, let me tell you…
When I started to account for that,
It made it incredibly difficult to decide where I sit on the debate between renting VS buying.
Well…
Luckily for you,
In this week’s post episode, I’m joined by Aaron Whybrow and Karina Fox,
We’ll be covering everything you need to know when considering buying your next home!
We’ll be discussing:
– The limitations of rent-vesting
– Considerations before buying a PPR
– As well as equity, borrowing capacity and more!
PS: Share with us your experiences! Have you bought the big PPR or are you still rent-vesting? I’d love to hear some real-world experiences around this topic!
DISCLAIMER:
All information we share is NOT financial or investment advice and is purely intended for entertainment and educational purposes only. Always seek professional advice before acting on any financial decision.
Episode Highlights:
00:00 Welcome to Property and Investing
03:36 When is the right time to buy your PPR?
10:22 Other considerations to get you buying a PPR
15:01 Karina’s rental experience and professional house sitting
18:42 Limitations of rentvesting
19:48 Is being a rentvestor still viable in Australia?
24:30 The borrowing power of a rentvestor and the owner occupier advantage
26:42 What’s too much house?
34:32 Using equity or selling an investment property to purchase a PPR
If you enjoyed this episode, please don’t forget to subscribe, tune in, and share this podcast!
Resources:
- Property and Investing website: https://propertyandinvesting.com/
- If you want to find out more about our guests, Aaron Whybrow and Karina Fox head over to: https://propertyandinvesting.com/partners/
About the Guest:
Aaron Whybrow is the founder of Diagnostics and Finance, a Financial Broking and Personal Risk Insurance Business.
Diagnostics & Finance (ARW Financial Services Pty Ltd) is a Credit Representative 425540 of Finsure Finance & Insurance ACL 384704.
He is known as the ‘bagpiping mortgage broker’, who prides himself on having no ‘flats’ in his career. He blends his experiences as a former intensive care unit nurse and medical sales rep to provide the best outcomes for his clients.
Karina Fox has extensive experience in Finance, Mortgage Broking and HR. She prides herself in taking the time to understand her clients dreams and aspirations, focuses on educating her clients to assist them in making the best financial decisions, which ultimately yield the results that align with their goals. With a passion for first time property buyers, first time investors, those looking for SMSF and women on their finance journey, Karina understands the power of assisting her clients in making educated decisions.
As an Aerial Yoga instructor, Karina’s approach to finance is “flexibility”. She acknowledges that “not everyone’s story fits into a box”, and it is this attitude that make her stand out.
When she is not practicing Aerial Yoga, she values time spent with her family and partner, enjoying nature and volunteering for RizeUp – an organisation that helps families impacted by domestic violence.
To connect with Aaron Whybrow and Karina Fox, head over to: https://propertyandinvesting.com/partners/diagnostics-and-finance/
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