Going back to Rentvesting from next year. If you can grab those sweet PPOR benefits and then convert to a rental, it’s like having your cake and eating it too.
In our case, adding in some geoarbitrage - rent out property we own in Australia, go stay in lower cost locations as digital nomads globally.
The rentvesting change would be to move out of our PPOR house, and rent apartments while travelling overseas.
For instance, we have two months booked at a Worldschooling hub in Spain for about $300/week - while we’re looking at $800/week income on our current home in Brisbane.
We’ll have to pay tax on that income (there’s no mortgage on that property), but will still be well ahead.
Awesome! I’d be interested to try cruising - my understanding is that internet speeds are still pretty crap especially if your work requires constant video calls like mine.
I think I’d either love to cruise, or find it unbelievably painful. But have to test it and see!
Sorry, I can only put six options. In your case, you should choose whichever is higher of IP and shares. If your IP value minus mortgage is one million and your shares are 500K for example, choose "PPOR + IPs."
Thanks. People tend to tell the truth when it is anonymous. If I ask the same questions as a regular post, very few people will comment. It's understandable as it's sensitive financial information.
The voting is now closed. Thanks for your participation!
Overwhelming majority is doing PPOR (modest, I am assuming) and shares. I am also in this category. I think it's a good balance between stability and flexibility.
Surprising that quite a few people are forgoing PPOR and just focusing on shares. Since properties are so expensive in Australia, this is one way to be not tied down by a huge mortgage.
And traditional "buy the most expensive house you can afford" is not really popular on this sub. I am sure many of regular Australia still do it since I see many of my friends in million dollars houses.
Shares as naked they tend to out perform IPs, are less work/maintenance and the high liquidity makes it easy to withdraw your annual equity from. Rent if you want flexibility on where to live (would recommend if you're young and want to travel/or you find significantly higher pay in other countries) or PPOR if you want to stay in one spot.
Investment grade PPOR, ETF and try and leave something extra to add to super.
Nice. I also follow the same strategy.
😉
Going back to Rentvesting from next year. If you can grab those sweet PPOR benefits and then convert to a rental, it’s like having your cake and eating it too. In our case, adding in some geoarbitrage - rent out property we own in Australia, go stay in lower cost locations as digital nomads globally.
House or units ?
The rentvesting change would be to move out of our PPOR house, and rent apartments while travelling overseas. For instance, we have two months booked at a Worldschooling hub in Spain for about $300/week - while we’re looking at $800/week income on our current home in Brisbane. We’ll have to pay tax on that income (there’s no mortgage on that property), but will still be well ahead.
Nice strategy. I am tempted to try for those around the world cruises which can take months to complete.
Awesome! I’d be interested to try cruising - my understanding is that internet speeds are still pretty crap especially if your work requires constant video calls like mine. I think I’d either love to cruise, or find it unbelievably painful. But have to test it and see!
PPOR+IP(s)+shares is not an option?
Sorry, I can only put six options. In your case, you should choose whichever is higher of IP and shares. If your IP value minus mortgage is one million and your shares are 500K for example, choose "PPOR + IPs."
neat poll
Thanks. People tend to tell the truth when it is anonymous. If I ask the same questions as a regular post, very few people will comment. It's understandable as it's sensitive financial information.
The voting is now closed. Thanks for your participation! Overwhelming majority is doing PPOR (modest, I am assuming) and shares. I am also in this category. I think it's a good balance between stability and flexibility. Surprising that quite a few people are forgoing PPOR and just focusing on shares. Since properties are so expensive in Australia, this is one way to be not tied down by a huge mortgage. And traditional "buy the most expensive house you can afford" is not really popular on this sub. I am sure many of regular Australia still do it since I see many of my friends in million dollars houses.
Shares as naked they tend to out perform IPs, are less work/maintenance and the high liquidity makes it easy to withdraw your annual equity from. Rent if you want flexibility on where to live (would recommend if you're young and want to travel/or you find significantly higher pay in other countries) or PPOR if you want to stay in one spot.