Joseph Sukkar

Rentvesting
Rentvesting
Saving for a deposit for your first home requires discipline and can be hard work, especially when the market dynamics are influenced by interest rate movements or growing values in your target suburbs.
 
But don’t let frustration signal the end of the road for your ownership ambitions.
 
As an experienced agency, we believe you can modify your strategy to ensure you can climb onto the property ladder.
 
One option you could consider is becoming a ‘rentvestor’. Rentvesting is where you purchase a property within your budget and rent it out. You then rent where you want to live while reaping the benefits of being a property owner and landlord.
 
It can be a great approach for those who want to stay in busier areas, such as major cities, yet remain focused on owning real estate.
 
Below are some tips and watch-outs to help you consider a rentvesting strategy.
 
THE POSITIVES:
  • THINK LONG-TERM: Capital gain from property takes time, so make sure it matches your other personal and financial goals.
  • PROPERTY CHOICE: Your purchase must be attractive to tenants. The property will crush your cash flow if it’s vacant. Research the types of homes popular with renters including agents and reviewing rental listings for the area.
  • LOCAL SERVICES: Ensure your property is near shops, schools and other amenities. Local transport is not the best in many areas but good transport can help attract good tenants.
  • FINANCIAL BENEFITS: A good accountant will also maximise the tax benefits of being a landlord. Make sure you get tax advice before you purchase. Don’t assume! Your accountant is best placed to know your circumstances.
THINGS TO WATCH:
  • CASH SHORTFALL: The rent may not cover the entirety of the mortgage. Make sure you have the cash flow to cover any shortfall and know how long you can cover a gap before it becomes personally unsustainable.
  • LOAN COSTS: Lenders tend to charge a higher interest rate on an investment loan, so consider whether living in the property for a while is an option for the first year or two.
  • MANAGEMENT FEE: Many clients use a property manager to look after their property and pay 6-10% of the rent in fees. A good property manager will help set the rent, negotiate with potential tenants and handle maintenance. Make sure you budget for them.
  • UPKEEP COSTS: If you buy an apartment, predetermined strata fees apply and should be in your budget calculation. With a house, maintenance costs can be higher. Make sure a broker hot water service doesn’t tip your finances over the edge.

 

 

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Mandy Makhlouf
Really appreciate the services provided ...
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Mandy Makhlouf
Really appreciate the services provided by Intellect Finance Mortgage Broker especially Joseph and Charbel. I have been a client for a long time and will continue to be and refer family and friends. I recently refinanced few loans for myself and my children, and our experience was very positive. The team provided us with information and options to consider, answered questions and were very proactive in helping us navigate the process with confidence. Highly recommended.
Mandy Makhlouf
Mandy Makhlouf
Kim
These guys deserve 10 stars! Working with Joseph & Charbel has been an absolute breeze. Their extensive knowledge...
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Kim
These guys deserve 10 stars! Working with Joseph & Charbel has been an absolute breeze. Their extensive knowledge and professionalism has been admirable to say the least. They have gone above & beyond to help us with our Home Loan and we couldn’t have been happier with the result. Highly recommend Intellect Finance!
Kim
Kim
Jeremy Fuller
Joseph and the team at Intellect Finance were the best to deal with, they take the time ...
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Jeremy Fuller
Joseph and the team at Intellect Finance were the best to deal with, they take the time to listen to you and my experience with them has always resulted in the best possible outcome. I would highly recommend the team at Intellect Finance Mortgage Brokers to anyone. seriously, 5 stars!
Jeremy Fuller
Jeremy Fuller
Isaac Kuruvilla
Charbel and the team have been fantastic to work with. There were a few hiccups with the financing approvals but they ...
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Isaac Kuruvilla
Charbel and the team have been fantastic to work with. There were a few hiccups with the financing approvals but they successfully navigated those. We now have a better financing solution for our family, which means more disposable income and less stress. Thanks Intellect Finance!
Isaac Kuruvilla
Isaac Kuruvilla
Elias Moussa
I Used the service when I was looking to buy my house and I was so impressed I’ve continued...
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Elias Moussa
I Used the service when I was looking to buy my house and I was so impressed I’ve continued to use it over the years. Just recently I was looking to refinance and I had the pleasure of being assisted by Charbel, the bloke is an absolute legend, very grateful for all his help. I Highly recommend intellect finance
Elias Moussa
Elias Moussa
Shadia El Maady
We highly recommend the Intellect Finance Mortgage brokers, as they're very professional, helpful, efficient, polite and responsive, ...
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Shadia El Maady
We highly recommend the Intellect Finance Mortgage brokers, as they're very professional, helpful, efficient, polite and responsive, especially replying to emails. It was a great pleasure doing business with this service. Keep up the good work guys.
Shadia El Maady
Shadia El Maady

Joseph Sukkar