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Do Most Investors Rent?

Discussion in 'General Property Chat' started by magma, 12th Apr, 2016.

  1. magma

    magma Active Member

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    I'll classify myself as a part time investor as I've lost touch with the whole investment game after moving to a recently purchased apartment last year.

    My very first apartment, which was my PPOR briefly, is now rented out. All's well, getting a bit of cash flow and with the second one, I'm itching to rent it out to make the most out of it as well.

    Is it a radical strategy for investors to rent a place to live in and rent out all their properties or this is a common practice these days?

    I did a very quick and lose computation and it looks like I can squeeze out $100 a week if I rent out my current PPOR and rent a place to live in. I took into consideration agent fees, body corp fees etc... I haven't included depreciation schedules & tax return for the mortgage.

    Your thoughts will be highly appreciated.
     
  2. jaybean

    jaybean Well-Known Member

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    I do. Someone made a great thread about this recently. Would be good if someone could link it.
     
  3. magma

    magma Active Member

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    have been trying to look for existing discussions about this, is it just me or Somerton had a better search functionality? Maybe I'm doing something wrong? :)
     
  4. magma

    magma Active Member

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  5. larrylarry

    larrylarry Well-Known Member

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    It will be easier if you just join the thread you posted.
     
  6. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I don't think its a radical approach. I think its really an individual thing. But when it comes to buying a place with a large loan because its an 'emotional ppor buy' then many decide to just rent in the same place for much less than repayments would be, allowing them greater financial capacity to then further invest. Some investors are a lot more aggressive than others too, and some are a lot more passive so buying a ppor first, and then perhaps 1 or 2 ips later on suits them. I think its really an individual thing tbh. I do know though that a lot of quite aggressive investors will not buy an emotional ppor until they have a portfolio built to some extent first.
     
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  7. Bran

    Bran Well-Known Member

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    I don't. I buy a PPOR then slowly improve it before moving out.
     
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  8. larrylarry

    larrylarry Well-Known Member

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    I got my PPOR first then 2 IPs. Might rent out PPOR in few year's time.
     
  9. bob shovel

    bob shovel Well-Known Member

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    Ive mentioned it a couple of times somewhere.

    the numbers do stack up better renting, brokerton also says it works best for us.

    the property couch guys have talked about it, plus theres an article in money mag (havent read it :) ) "rentvesting" is the political correct term, not "scum bag tenant c/w IP's" ;)
     
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  10. dabbler

    dabbler Well-Known Member

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    If I did not have so much junk and a partner that is against renting due to moving, would do it too.
     
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  11. bob shovel

    bob shovel Well-Known Member

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    moving is fun and will get rid of your junk!
     
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  12. Xenia

    Xenia Adelaide Property Manager Business Member

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    I run a rent roll and have been doing so fit 11 years. There are a few investors who rent, most own the property they live in.

    Renting however is a strategy that has some merits
     
  13. Jerry O

    Jerry O Well-Known Member Premium Member

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    @bob shovel
    I am also a "rentvester" myself. Recently converted PPOR to IP and the numbers stacks up for me at the moment so I don't mind doing this for now. :)
     
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  14. Gingin

    Gingin Well-Known Member

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    So do live in a renovation constantly? Doesn't sound fun especially if you have tin lids.....
     
  15. dabbler

    dabbler Well-Known Member

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    After moving many times in last decade, the last word I think of if moving is fun, the other half hates it too, so I also have to listen to that on top of disliking it myself, my junk is stuff I wont get rid of, it is needed, lot of tools etc.

    Then you have these kitchen problems, LL who wont agree to a power point.....nah....I am getting an ear ache just imagining what I would be hearing ;-)
     
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  16. Cactus

    Cactus Well-Known Member

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    Rentvester here too:D
     
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  17. magma

    magma Active Member

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    should have not invested a lot of emotional attachment to current PPOR. Fell in love with the place but I'm sure it only takes a few weeks to forget about as long as I keep on listing the cons of living here.
     
  18. joel

    joel Well-Known Member

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    I like renting. Im young, im indecisive, my job may take me to new cities.. its great to be able to move house whenever i want. Ive been selling a lot of my old junk that i dont need to make moving that much easier. Plus as a low income earner, a PPOR would smash my borrowing capacity so renting makes sense.

    On the other hand i sure would love to renovate a PPOR over 6 months instead of rushing to do up IP's by settlement day :p
     
  19. raj_27

    raj_27 Well-Known Member

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    We have been thinking a lot about this. I din't have any IP's yet, but while educating myself about investment property made us interested in this strategy. We have been in our PPOR for 7 years. Now with two kids (5 y ,1.5 y) thinking of renting closer to city and rent out the PPOR and buy more IPs. So far seems like a good idea.
     
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  20. Marg4000

    Marg4000 Well-Known Member

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    Always owned a PPOR. have lived here for 37 years. Stability for the kids when they were young and at school.

    I like the security, freedom to do what I want, and not having to move to suit someone else's agenda. And also, not being housekeeper of the year material, no inspections!!!
    Marg
     
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