Do Most Investors Rent?

Discussion in 'Investment Strategy' started by magma, 12th Apr, 2016.

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  1. aussieshorter

    aussieshorter Well-Known Member

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    I can see the benefit and appeal of doing it this way, but we've always owned our PPOR.

    One thing someone told me a while ago that stuck with me, was to take the interest cost you're paying on the PPOR, and think about what that would get you if you were paying it in rent.
     
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  2. Bran

    Bran Well-Known Member

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    No, I haven't bought renovators. They are completely liveable, I just make small changes to make them better.

    It's not a strategy, just my history. I've only just bought my first outright IP. None of my PPORS have ever intended to be our forever house, but steps up the ladder. I just keep the rungs.
     
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  3. Sonamic

    Sonamic Well-Known Member

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    Same here. Except I sold the very first rung I bought to upgrade. Lesson learnt.
     
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  4. magma

    magma Active Member

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    I very much love this idea. Wife is a hoarder and I'm a minimalist. I hate moving but if it will get rid of junk, then it's worth it!
     
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  5. magma

    magma Active Member

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    With this, if the interest cost and rent is pretty much the same, does it justify the strategy? furthermore if the proposed rental monies allocated is less, it definitely justifies the strategy because it will generate indirect savings?
     
  6. bob shovel

    bob shovel Well-Known Member

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    great way for a spring clean! plus makesyou think whether its worth packing, moving, unpecking or just send stuff to the tip!
    while youre at it i recomend throwing out the tele and go a few months without and see if you really need that!
     
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  7. aussieshorter

    aussieshorter Well-Known Member

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    I guess the point is that in a lot of situations the rental cost will be lower than interest costs on the same property.

    But if you take the interest cost you would pay/are paying on a PPOR, and instead use that same amount for rent, you will often get a much nicer place to live (whether that's better location, bigger, more modern, etc.).
     
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  8. magma

    magma Active Member

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    I'll start by throwing the coaxial cable... there's too much social noise from free to air. baby steps!
     
  9. magma

    magma Active Member

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    will keep this in mind, but, solid backbone on decision making :)
     
  10. Magnet

    Magnet Well-Known Member

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    We are 'rent vestors' we couldn't afford to live in our suburb of choice and invest as well. We have kids and find that it works for us. It means we can upgrade our lifestyle as our life/kids needs change and as our income changes.
     
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  11. Jerry O

    Jerry O Well-Known Member

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    had a broken tele once, couldn't bother to get a new one. after having no tele for months, i realised i didn't really need it after all. i've since read books or browsed the forums instead of watching the tele.
     
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  12. Azazel

    Azazel Well-Known Member

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    I'm a rentist at the moment.
    Will be moving into one of the IP's at some stage.
     
  13. Cem

    Cem Member

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    I think Chris Gray is one of the guys who coined the term "rentvestor".

    He has worked his way up to renting multimillion dollar homes to live in while buying IPs and living off the equity gain
     
  14. WattleIdo

    WattleIdo midas touch

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    I like what you say but it's amazing how hard it is to get rid of some stuff ... don't know why. Needs a ruthless state of mind.
    btw am currently a rentvestor but hoping to move into IP in next few weeks. After a while, will move out and rent again somewhere else.
     
  15. Azazel

    Azazel Well-Known Member

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    I invented rentovator. Doing renos while renting.
    I didn't say it was a good strategy.
     
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  16. WattleIdo

    WattleIdo midas touch

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    Numbers wise it's good. Doesn'tmake you popular with the Joneses. Sometimes fun, sometimes a pain in the butt. Rentovator ... like.
     
  17. bob shovel

    bob shovel Well-Known Member

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    I used to be a bit of a hoarder bit now I'm ruthless! I walk through my patents place and just want to get a skip and go nuts!!

    It's like on the living room on Ch 10 (one of the few shows i occasionally watch;) ) that dude that helps you throw your stuff out. It's easier with someone questioning if you really need that old analogue tele
     
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  18. WattleIdo

    WattleIdo midas touch

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    Maybe this is your calling? I could do with someone questioning the true value of a few items.
     
  19. Gockie

    Gockie Life is good ☺️ Premium Member

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    I think my new home is always going to be amazing. :)
    We bought the house!! :)
     
  20. Azazel

    Azazel Well-Known Member

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    The Joneses can try to keep up.
    Maybe I can rent their house.
     

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