Financially savvy Australian women are turning their backs on the Great Australian Dream and instead creating wealth through real estate investment, says property portfolio strategist Christine Williams.
A growing movement of financially proactive Australian women are turning tradition on its head, moving away from home ownership to the new wealth creation model offered by ‘rentvesting’. They know you don’t need your name on the mortgage to live where you love, work and play, but can purchase something affordable elsewhere with tenants of your own. Heading for the future with property portfolios offering capital growth opportunities, ongoing cashflow, multiple tax deductions and financial security, these women know there are easier paths towards wealth creation.
Young women gear up early to create wealth as part of the new breed of ‘rentvestors’Home ownership restrictions you may never have considered
We buy homes based on emotion – we’re only human that way. But what most strongly pulls at the heartstrings may not be the best option for your bottom line. That stunning Victorian in Hawthorn? Do you realise how much money it’s going to chew up throughout the course of its life: new roof, re-stumping, not to mention flooring issue that’s turned out to be termites? Of course it looked beautiful – these properties were top of the class in their time. So when you look at a property’s lifetime holding costs, isn’t it better to meet these expenses with someone else’s help?
Buy something new… and have someone else live there
As a buy-and-hold property investor myself, I prefer to purchase new dwellings to ensure maximum tax deductions and minimum maintenance. The type of property that I buy depends on a local area’s demographics and what’s in most demand. I never buy anything I wouldn’t live in myself – and nor should you! Tenants like just the same things you do: light, bright, clean, easy care properties that they can settle in and take good care of throughout their stay. Purchase close to transport, medical facilities, schooling and shopping centres, so that everything they need is in reach.
Single or partnered, this strategy will help everyone
The concept of renting somewhere and having tenants live in your own property elsewhere can take some getting used to, but consider this: that piece of real estate you own has much to offer. It reduces your tax, rental payments help to pay the mortgage and you now own an appreciable asset with the potential to double in value every 12-15 years, depending on what stage of the property cycle you purchase. It’s a form of financial freedom that’s truly liberating. Even if you’re in a long-term relationship, ‘rentvesting’ remains a great option, with two of you able to invest and build wealth elsewhere.
Using the power of money to your advantage
As someone who was an early convert to ‘rentvesting’, I took up this strategy after my 1990s divorce. I wanted to stay where my daughters were at school, but the only way I could afford to do so was by renting. I’d seen the money made from the sale of our family home and realised what real estate could offer the independent wealth creator, so I started to invest where I could afford to buy. This step away from the norm of home ownership took a lot of courage at the time, but it’s enabled me to build a significant, diversified portfolio throughout Australia’s east coast.
Buck tradition and embrace your capacity to earn
When people do the same things over and over, it’s hard to step out of your comfort zone and try a new way. You may be surrounded by people who shy away from newer ways of wealth creation, unaware that what we’ve done in the past may not best serve our needs. It’s time to make the world your own and build financial security that’s going to help you now and into the future. There’s money in bricks and mortar, a tangible, solid way to achieve your dreams and then some. Will you be part of a new income revolution or let the ways of the past hold you back?
Find out more about property investment strategy from Christine Williams
on her Website: http://smarterpropertyinvesting.com.au