Most of us have been taught that “rent money is dead money” but is that really true in markets where owning a house is an expensive proposition?
The “rent money is dead money” comes from the age old idea that if you are paying off someone else’s mortgage then you are not investing in your own hard equity. If you are in the right city or circumstances the amount you can pay in rent can even be less then you pay monthly in interest on a mortgage for house and not even meet the principal. The bottom line is that even more so than rent money, “interest money can be dead money!”
Every single self-help book ever written about wealth-building has always advised renters to do one thing. Don’t Rent! Own!
Renting is not a good way to get rich, especially if you find yourself looking for a place to live in the middle of a rent crisis and competing for your dream home with people who are willing to hand property managers an extra large security deposit or months of rent in advance. Whenever you are in a rent crisis, it is much better to be an owner, than a renter!
Will the new Trend of Empty Nests Create a Building Boom?
As a result of the world-wide global recession we have seen a trend where children tend to stay in the nest with their parents longer. The State Treasurer of Queensland, Andrew Fraser announced in January 2012 that studies were showing that many families had children as old as thirty staying with them in order to save money. However, in the next twenty years, it is predicted that this group of nesters are finally going to leave as the economy improves and also because it is evident that one cannot be supported by their parents their entire lives.
Good News! Building Approvals Up 7% in QLD
If you live in Queensland or are trying to move there then you are probably more than aware that there is quite a housing shortage in the area. In some sought-after residential areas there is a vacancy rent that is below 2% and there is a real shortage of family homes, particularly those with a view of the coast, a pool and a couple of bedrooms and a garage.
This is a once in a lifetime opportunity! You only have until April 30 2012 to be eligible for a $10,000 Queensland Building Boost Grant that will help pay for your investment property!
$10,000 provided by the Queensland Government will subsidise your out of pocket expenses to pay for your investment property in the first year. That’s one year paid! Use tax deductions accumulated throughout the 1st financial year to offset the 2nd year.
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The Gold Coast has taken its place among the great Australian Cities after winning the 2018 Commonwealth Games
Bid in St Kitts & Nevis said Premier Bligh today. Ms Bligh said the Games could generate up to $2 billion in economic
benefit with up to 30,000 full time-equivalent jobs created between 2015 and 2020. Over $500 million will now be invested
on sport and transport infrastructure as a direct result of the successful bid. “Congratulations to the Gold Coast, to Queensland
and Australia – we did it!” said Ms Bligh. “Our united community welcomes these games. “In 2018 we will be ready to host a
unique world- class and friendly event that builds on the Commonwealth brand and enhances our city’s reputation.