Learning with Rentvesting

 

Take a bunch of Millennials and Gen-Xers. Put them infront of a computer. Hook it up to the Internet. And give them the freedom to challenge the status quo. Sprinkle a little entrepreneurial fairy dust and what do you get?

Stuff that only dreams are made of, it seems.

Read into the history of technology Unicorns like Uber, Facebook, AirBnB, Snapchat to name a few and you’d see a common trait within all of them. These billion dollar companies had entrepreneurs that dared to challenge conventional wisdom that certain things had to be done in a particular way.

The founders saw something in the market that no one could see, and went about to show world the benefits that could be gained through their ideas.

To get to where they are, it’s safe to say that all of them have had to make many sacrifices along the way. While I cannot definitively confirm this, I’d bet that one of their sacrifices during the formative stages of their companies was to give up the prospect of owning a home to call their own.

They didn’t have to worry about a huge mortgage hanging over their heads; all their time and efforts would have been spent on keeping their start-ups afloat. Any money that would have otherwise been spent on a house would have been pumped into the business as startup capital.

They rentvested instead. And it probably contributed greatly to the success currently enjoyed at this stage of their company life.

These entrepreneurs are living proof that rentvesting actually works, and if executed properly, might be a good strategy to creating long term wealth.

So what exactly is rentvesting?

Put simply, it is the renting of a home (instead of buying) and directing any extra disposal income toward investments that can potentially generate much higher returns than real estate. And we are talking about returns upward of 30% per annum.

Gone are the days where coming-of-age adults instinctively bought houses and worked a stable 9-5 job for decades to pay off the huge mortgage. Like the Unicorns founders above, many millennials and Gen-Xers are choosing to be free spirits and non-committal to any long-term financial arrangements.

They have worked out that renting frees up a large portion of their money which allows them the flexibility to chase their financial dreams, whatever they may be.

Learning with Rentvesting

If you think that rentvesting is something that might work for you, visit www.rentvesting.com.au to learn more about the concept.

Queensland-based property consultant Peter Mastroianni runs this website, and he partners up with professionals across many industries to come up with thought-provoking ideas around the concept of rentvesting.

Articles are wide ranging from introductory pieces to highly technical strategies. Rest assured though as it does not matter what your finance literacy level is, this website has something for everyone.

On top of written literature, Peter also publishes regular 20-minute podcasts where he discusses specific financial concepts in a casual setting with one of the professionals within his contributor panel. If you don’t already listen to podcasts, definitely give them a try.

I’m an avid listener because it allows me to “learn” while on the move; perfect for my morning commute to work or when I’m driving long distances.

In today’s “Learning with the expert” post, things are going to be done a little differently. Instead of me interviewing another person like I normally do – previous posts here and here – I’m sitting down with Peter today to record a podcast on demystifying some of the words regularly used in funds management. I do hope you enjoy the recording and gain some insights from our conversation.

If you found value from this session, you can find much more at Peter’s website so head on over to get started on learning with Rentvesting.

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