We’ve all heard the phrase “rent money is dead money,” right? But is it really?

As property prices surge and affordability challenges mount—especially for younger Australians—a growing number of people are turning to an alternative path: rentvesting. That’s where you rent the home you live in and invest in a property elsewhere.

Is this just a clever workaround, or is it a genuinely smart wealth-building strategy?

In today’s episode I’m joined once again by Stuart Wemyss to explore this in depth.

And even if you’re not particularly interested in rentvesting, I’m sure many of the investment principles Stuart and I will be discussing today will be of benefit to everyone interested in property.

 

Takeaways 

·         Rent-vesting allows flexibility in property investment.

·         Owning a home can provide long-term financial security.

·         Demographic shifts are changing home ownership trends.

·         Tax implications play a significant role in property decisions.

·         Rent-vesting may not suit everyone financially.

·         Understanding personal goals is crucial in property investment.

·         Long-term strategies are essential for financial success.

·         Common mistakes in rent-vesting can derail financial goals.

·         The importance of a holistic financial strategy.

·         Buying a property is a long-term commitment.

 

Chapters 

01:40 Introduction to Rent Vesting and Home Ownership

04:34 Understanding Rent Vesting: Pros and Cons

06:56 Financial Analysis of Rent Vesting vs Home Ownership

09:46 Demographic Shifts and Home Ownership Trends

12:36 Tax Implications: Capital Gains and Negative Gearing

15:17 Long-Term Financial Strategies and Retirement Planning

18:23 Common Mistakes in Rent Vesting

20:52 Final Thoughts: Making Informed Property Decisions

 

Links and Resources:

 

Answer this week’s trivia question here- www.PropertyTrivia.com.au

·         Win a hard copy of How to Grow a Multi-Million Dollar Property Portfolio – in your spare time.

·         Everyone wins a copy of a fully updated property report – What’s ahead for property for 2025 and beyond

 

Michael Yardney

 

Stuart Wemyss – Prosolution Private Clients

Stuart’s Book – Rules of the Lending Game & Investopoly

 

Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us

Get a bundle of free reports and eBooks – www.PodcastBonus.com.au

 

Also, please subscribe to my other podcast Demographics Decoded with Simon Kuestenmacher – just look for  Demographics Decoded wherever you are listening to this podcast and subscribe so each week we can unveil the trends shaping your future.