Truly Finance

Around 2 years ago, I was referred to a client, he wanted to change his property strategy.

It was different to the 'usual'.

He wanted to pivot from only owning his home, to only owning multiple investment properties (with mortgages).

And he wanted to rent where he lived.

This is called rent-vesting.

Then he would either use rental income, or sell properties to support funding his retirement - or a combo of both.

This strategy has played out nicely for him over the last 2 years, acquiring 5 investment houses (plus property in SMSF) and living a modest lifestyle close to work and family.

His investment properties have good yields, have unrealised capital growth, and are in capital cities.

Not your typical Australian dream! "The Great Australian Dream is the desire for every Australian family to own their own home. Owning your own home on your own block of land was a symbol of success."

Yes - we discussed everything, including the risks of rental market, and the costs of capital gain tax, portfolio diversification utilising other finance professionals.

This use of tax-effective leverage to accumulate investment assets is still considered a good move in his situation.

There are Pros and Cons to every strategy!

Truly Finance's advice, financial services and property strategies are generally complimentary. We do this for the best interests of our clients and we strive to be the best mortgage brokers!

James Brett. Principal Mortgage Broker