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We have so many people come in to an appointment desperate to buy their own home. They want to “stop paying someone else’s mortgage” and get out of the rental pool. This is because they believe their rent money is “dead” money.
“Well, isn’t it?” You ask.
If you’re simply renting, then yes, I’m afraid your rent money could be considered “dead”… at least to you. Unfortunately, the truth is your rental payments are paying someone else’s mortgage. However, you are paying for a commodity – shelter for your family – so your money isn’t being wasted.
Bring Your Money Back To Life!
Rather than simply pay rent, and live paycheck to pay check, get back some of your hard earned money through investing in real estate.
Buy a new home in a location offering a great investment opportunity and then move in and live there for the next 6 to 12 months; long enough to take advantage of stamp duty and grant concessions.
Then, move out and rent in the area you want to live in while renting out your property. Not only will you enjoy living where you want (rather than just where you can afford to buy), you’ll add to your cash flow and enjoy great tax benefits as a property investor.
As you can see, rent money alone can be considered dead money, but when you offset your rental costs through property investing you enjoy both good cash flow and/or great tax benefits simply by being smart with your financial options.
But I Already Own A Home!
Even if you already own a home you can benefit by using this strategy too.
Depending upon your situation, where you live, what your goals are – consider renting out your existing home and then renting in the suburb you want to live in.
Your home loan has no tax deductions and no income – it’s thrown over to the “bad” debt column when your lender is calculating your borrowing power, so why not consider moving it over to the “good” debt side by renting out your home, or chucking it all together by selling and then using your proceeds to buy one or more investment properties?
This advice seems to run counter to traditional wisdom – and in fact, perhaps it does – but ultimately, the goal of every property investor is to attain financial freedom. If selling or renting out your property can deliver that result, then why not do so?
To gain access to a world of knowledge about achieving financial freedom through property investing – the same knowledge that thousands of our satisfied clients have used to grow their wealth – click the button below for your free Positive Real Estate membership.
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