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Episode 4: Rentvesting – The Future of Investing in Property?

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5 Jun, 2020
Philip Robison

This episode features guest Terry Ryder of hotspotting.com.au

  • What is a Rentvestor – Someone who owns or aspires to own a property which will be an investment rather than one they live in…
  • Who are Rentvestors? – Typically Millenials born between 1981- 1996 aged 25 -37.
  • For the purposes of our discussion I am going to extend that definition to also include Downsizers in their 50’s seeking lifestyle & Cashflow.

Why we think Rentvesting is gathering Momentum?

  • Reasons… Skyrocketing prices – Last 25 Years Median Values have risen 412% or $460,000 – Source CoreLogic.
  • A Case Study – Philip & Terry take a look at the numbers.
  • Why is Rentvesting Gathering Momentum?
  • Desire for Work-Life Balance – Don’t want the stress of the BIG Mortgage.
  • Don’t want to do what their parents did; namely move out to the suburbs.

What are Rentvestors Looking for?

  • Their focus is on Affordability – therefore a much smaller deposit.
  • Affordability means being able to more easily buy more properties in the future.
  • They are not tying up their money in only one more expensive property – Can have several at a lower cost creating DIVERSITY – Not putting all your eggs in one basket.
  • They are looking for properties that provide a good rental return – Properties that in effect pay for themselves
  • Properties that have good prospects for Capital Growth
  • Example of buying a House for $260,000 – We take a look at the Numbers
  • Terry takes a closer look at areas that are doing well during the Covid-19 shutdown.
  • What do these areas have in Common?
  • We take a look at what’s attractive to Rentvestors – Affordability, Good strong rental returns and Capital Growth.
  • This is what I’ve coined the Holy Grail of Property Investing – Terry calls it the Win Win Win.

Affordable Properties

  • High Rental Yields – Minimum of 6%
  • Capital Growth – Once again we share some facts on the “real numbers.” You will be shocked by just how many Regional Areas have had Double Digit Capital Growth in the past 12 months.
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