May 15, 2025 • 13 mins
Stop waiting for the perfect property and start building wealth now through rentvesting - the strategy that's changing how Australians enter the property market.
Rentvesting turns traditional property ownership on its head. While your parents might have laughed at the idea of paying someone else's mortgage instead of your own, today's financial landscape makes this approach surprisingly powerful. By purchasing an investment property (anything to get into the market) while renting where you actually want to live, you can start building equity years before you might afford your dream home.
We break down exactly why this makes mathematical sense: a $500,000 studio apartment growing at 10% annually generates $50,000 in equity compared to saving just $5,000 extra per year while waiting. The numbers become even more compelling with today's interest rates - a $3 million home in Freshwater could cost $6,000 weekly in mortgage payments but rent for just $2,000! As tenants, you also avoid maintenance headaches, council rates, strata fees and repair costs.
For first home buyers, we dispel myths about grant requirements and explain the multiple financial assistance programs available, including using your super for deposits and avoiding Lenders Mortgage Insurance with smaller deposits. Stop letting perfect be the enemy of progress - the property market waits for no one, and the sooner you're in, the faster you'll build wealth. Ready to explore if rentvesting could work for you? Calculate what you can buy today, compare potential rental income to mortgage costs, and witness how this strategy could accelerate your property journey.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Here I've got the perfect heading for you.
Stop waiting for perfect.
Start rentvesting now.
Enter the market now.
Live your dream throughrentvesting.
Buy anything, rent your dream.
Get started with rentvesting.
Own something.
(00:21):
Rent where you live that'srentvesting.
Own something, rent where youlive that's rentvesting.
Can't buy.
Buy smart.
Start with rentvesting.
You get it, guys.
That's what we're going to talkabout today.
Speaker 2 (00:48):
Stay tuned.
I'm the ringleader, so let's go.
Good morning everyone.
Welcome to Morning MinutesMyself, michael Bergio, mark
Novak, episode 420, 1421,talking about rent vesting the I
like this topic because this isdefinitely a newer era topic.
(01:11):
If you said to your parents,your grandparents, you're not
going to own and pay themortgage of the house you live
in, you're going to be payingsomeone else's, they would laugh
at you and say, don't be silly,no, we're not paying that.
But that's not the same of thelast few years.
In particular, there's a phrasefor it and when something's got
(01:33):
a phrase like rent vesting,then it's catching on.
But let's start with mark.
What is rent vesting and why isit becoming more and more
popular?
Speaker 1 (01:43):
you remain as a tenant and you buy something,
anything to get into theproperty market, and then you
put a tenant into that property,so you're the landlord for that
property.
Speaker 2 (01:57):
So you've got into the market all right, let's
start with there must befinancial benefits to do this.
But before we go into financialbenefits, what are some
benefits of being a tenant whereyou live, compared to being the
owner where you live?
Speaker 1 (02:13):
Oh, it's fantastic.
Maintenance is one of themprobably the biggest one, I'd
say where you don't have theoutgoings, you don't have the
strata rates, the water rates,any of that stuff.
Speaker 2 (02:26):
Um, and you know, if the maintenance of anything goes
wrong, you can just pick up theeight, pick up the cool, um,
call the agent, get fixed yeah,the stove breaks huge and
especially if what you typicallysee is red vesting, you're
renting a higher premium homethan what you may own, so the
(02:47):
maintenance could be a lothigher.
So to save that cost, becausesomeone might say, well, you've
got to do it on your own, butyou're typically renting a
property at a higher level thanwhat you own.
So there's that reason.
But there must be a financialconsideration and incentive why
this is a lot more popular.
Speaker 1 (03:07):
Well, I think the biggest thing, the biggest
problem that I see with, withpeople um, not considering this
is they abstain, they wait andthey wait and they wait until
they can buy the perfectproperty.
And it's like property valuesare going up and up and up and
if it's costing you more to buythat property, you're just
(03:28):
losing money.
So if you get in sooner intoanything, so if you get into a
studio apartment, if you getinto a one-bedroom apartment and
you really want to buy athree-bedroom house, that's cool
.
Speaker 2 (03:40):
But just get into that one-bedroom or studio and
don't wait yeah, and I here, Ithink here are the numbers and I
remember with my apartment.
So you're looking at themortgage worked out, let's say
mortgage charter councileverything worked out to be
about 1400 a week, but it wasonly leasing for 550 per week.
(04:01):
So that's an example where tobuy that property.
But then I could go well, whatcould I rent for 1400 a week?
And that can take you tobasically a beachside property.
So you can see, especially withinterest rates now back up to
that, five, six, seven percent,this is a lot more impactful.
(04:22):
A few years ago, when peoplewere getting 1.9 1.8 percent uh
loans, there wasn't as big of asa a distribution between the
rental market and the land taxmarket and I think you hit on
something perfect which a lot ofpeople look past If they can't
(04:45):
buy what they want, as you said,they save.
But just because you don't wantthat type of property doesn't
mean it doesn't still haveproperty growth.
If you look at let's take DY,for example let's say units have
gone up 10%.
That's all units studios, onebedrooms, two bedrooms.
Speaker 1 (05:05):
People find it hard to believe.
Speaker 2 (05:07):
I know.
So you may want to buy a twobedroom home.
But let's say you've got theability to buy a $500,000
property and you've got 50 grandsavings.
Now you may be able to save 10%additional.
So 50 grand a year, that's anextra $5,000 a year.
But if you can buy a $500,000studio apartment, that goes up
(05:30):
10% a year, you're now saving,earning an extra $50,000 a year.
And what's going to get you tothat two bedroom faster, saving
five grand cash or getting 50grand equity Capital growth?
Speaker 1 (05:45):
Yep, spot on, spot on .
And it's pretty hard for peopleto fathom that.
They're like nah, mate, I wouldnever buy a one-bedroom unit or
I'd never buy a studio.
But the cold hard facts are, ifyou get in guys as a rent
fester and I speak with matureage people 50s, 60s, 40s, smart
(06:12):
and they're going you know what?
Yeah, no, I'm not going to doit.
I'm like, hang on a sec, you'vegot to do the maths.
Even if they're helping theirkids, I'm saying your kid's not
going to pay 30 grand in stampduty.
So I know you want your kid tolive in a two-bedroom unit.
That's $950,000 or $1 millionin DY.
But get them into somethingsub-8 and just get them to rent
(06:36):
it out.
And then that dream later youcan always sell that asset later
that you've rent-vested, so youcan have it for five years and
then sell it and buy exactlywhat you want, because there's
your savings plus the capitalgrowth you had in five years,
rather than just your savingsover five years.
Rent vesting, rent vesting,rent vesting.
It is good.
Speaker 2 (06:57):
Yeah, and I think I forgot the other part.
I was going to say but yeah,that virtually covers it and I
think, even if you've got a no,this is what it was a lot of
people are.
When you're trying to do yourfirst homeowners, you've got to
live in it for six months now.
You've got to do yes, yes solet's say, and only out of 10
(07:22):
purchases, only 10 percent arefirst homeowners, so our first
time buyers, if that so of youthis is going to apply to.
But for the people who are yourfirst time buyers, where you've
got to live in it for sixmonths, then your goal is to own
property for five, 10, 20, 30years.
What's six months?
If you have to live in it, orif you just sacrifice and pay
(07:44):
the stamp duty because you'rebuying something for 500 grand
let's say stamp duty is 12 grandAre you going to get more than
12 grand in rental income thatcould compensate for it?
Speaker 1 (07:53):
so well, you know, I'll see some people even just
leave it vacant, but you know,shouldn't do that, um.
But uh, the six month thing alsois a little bit of a myth
because it's a reasonable, it'sshowing a clear intention.
Um, you know, a reasonable uheffort, um, to live in the
property.
(08:14):
It's within a 12-month period.
So, yes, you can actually firstdon't buy, I can actually buy
that rent vest and not have togo into it for 12 months.
They can leave a tenant inthere for 12 months, the first
12 months when they do go inthat period you're talking about
, if they are funny, if theymove in and after a month they
(08:34):
are financially unfit, there's achange with work or something
they can move, they can move out.
But they had a clear intention.
So, you know, I know peoplealways say first time buyers are
going to be in there for sixmonths.
It's actually not a figure.
If you research it with thegovernment, it's showing
reasonable effort and that'sdeemed as, yeah, sure, six
(08:55):
months is probably reasonable.
But you know, if you're inthere for one month, two months,
three months, and you justcan't afford it and there's a
change, that's fine.
Speaker 2 (09:03):
Yeah, and I think where this rent vesting could be
very, very helpful is forfamilies needing who may have
that two-bedroom apartment andthey need that house.
And it's a big step on propertypurchase wise and mortgage wise
, where you may have 10 yearsago bought a two-bedroom unit
for, say, 600 grand.
It's worth 1.5 now, but thehouse you need is 3 million,
(09:27):
like we were talking about theother day, just like knocked
down in Freshwater was like $3million.
Speaker 1 (09:33):
So to be fine.
I can't believe that.
I can't believe that if youwant a little house in
Freshwater, I think we workedout what the mortgage would be
and it was just scary to have anentry-level house in a suburb
like that.
I even looked at theMarrickville I looked at.
I saw something sold inmarrickville for 3.1 million a
(09:56):
little cottage, and I'm thinkinglike that's, that's a hell of a
lot of money at six percentinterest rates yeah, like, and
that's it, that's probably justpaying interest, so let's go
four million it was four million.
Speaker 2 (10:07):
Let's do it eight percent principal interest.
Eight percent, that's 320 000 ayear you're paying.
So that's divided by 52 is sixthousand dollars a week now to
rent that house.
You're talking two grand a week.
If that, yeah, if that, if that, so you can get.
Speaker 1 (10:29):
So that's a big one that's a good one.
So buy a you know one, two,three bedroom unit.
Rent it out.
Go and rent your house inmarrickville.
Rent your house in marrickvilleand live there.
Least you've put your foot inthe door for the property market
.
That's our message today lookat this.
Speaker 2 (10:49):
So 2600 a week fresh water a monster, yeah she's a
mansion, there's your floor planwhat street's that?
That is 91 harvard road wow butsix grand a week there you go
(11:14):
well, that's right, be on thewater.
Speaker 1 (11:16):
Third, eight hundred dollars for a six grand mortgage
so you know, the message todayis just get, just get in there,
guys, just get in there.
Rent vesting is a is a bigthing at the moment.
We're seeing a lot of people doat the moment um, and and still
, even if you're in that firsttime by category, you can
actually still get your grant.
You're no stamp duty paidwhilst living in that property
(11:37):
for 1300 um, whatever rentvested, rent vested and talk to
your real estate agent about um,or do some really good research
on, or talk to your real estateagent about the grants, because
there's some serious grants outthere for first home buyers
that include you can use yoursuper as a first home buyer to
buy your first home.
(11:58):
People don't know.
There's um.
There's you, you can save taxto save a deposit.
Then use your super as a firsthome buyer to buy your first
home.
People don't know there's um.
There's you, you can save taxto save a deposit.
Then use your super as a firsthome buyer.
There's no stamp duty under 30grand.
There's um.
There's other save.
There's saving uh ones wherefor two and a half percent you
can actually, or five percentyou can buy a property deposit
and you don't have to pay LMI.
Speaker 2 (12:19):
There's about five different grants for first-time
buyers, not just one and justquickly, things to consider for
rent vesting is what can you buytoday?
So go, you need to go to abroker, what can you buy today?
And then look at the repaymentson that principal and interest
repayments and then go see whatyou can rent for that and then,
(12:41):
just to show you how better offyou are the property that you
can rent for the equivalent ofyour mortgage go see what that
mortgage is and what that isworth.
Speaker 1 (12:49):
If you go get those four figures, you'll have a good
idea if this is right for youI'm a dog with a bone with with
helping people get finance aswell, so if you think you can't
do it and you can't get into themarket, call me.
Call Birch, call me.
Speaker 2 (13:06):
Beautiful, thank you.
Speaker 1 (13:07):
Thanks, Mr Birch.
See you Bye.
Here I've got the perfect heading for you.
Stop waiting for perfect.
Start rentvesting now.
Enter the market now.
Live your dream throughrentvesting.
Buy anything, rent your dream.
Get started with rentvesting.
Own something.
(00:21):
Rent where you live that'srentvesting.
Own something, rent where youlive that's rentvesting.
Can't buy.
Buy smart.
Start with rentvesting.
You get it, guys.
That's what we're going to talkabout today.
Speaker 2 (00:48):
Stay tuned.
I'm the ringleader, so let's go.
Good morning everyone.
Welcome to Morning MinutesMyself, michael Bergio, mark
Novak, episode 420, 1421,talking about rent vesting the I
like this topic because this isdefinitely a newer era topic.
(01:11):
If you said to your parents,your grandparents, you're not
going to own and pay themortgage of the house you live
in, you're going to be payingsomeone else's, they would laugh
at you and say, don't be silly,no, we're not paying that.
But that's not the same of thelast few years.
In particular, there's a phrasefor it and when something's got
(01:33):
a phrase like rent vesting,then it's catching on.
But let's start with mark.
What is rent vesting and why isit becoming more and more
popular?
Speaker 1 (01:43):
you remain as a tenant and you buy something,
anything to get into theproperty market, and then you
put a tenant into that property,so you're the landlord for that
property.
Speaker 2 (01:57):
So you've got into the market all right, let's
start with there must befinancial benefits to do this.
But before we go into financialbenefits, what are some
benefits of being a tenant whereyou live, compared to being the
owner where you live?
Speaker 1 (02:13):
Oh, it's fantastic.
Maintenance is one of themprobably the biggest one, I'd
say where you don't have theoutgoings, you don't have the
strata rates, the water rates,any of that stuff.
Speaker 2 (02:26):
Um, and you know, if the maintenance of anything goes
wrong, you can just pick up theeight, pick up the cool, um,
call the agent, get fixed yeah,the stove breaks huge and
especially if what you typicallysee is red vesting, you're
renting a higher premium homethan what you may own, so the
(02:47):
maintenance could be a lothigher.
So to save that cost, becausesomeone might say, well, you've
got to do it on your own, butyou're typically renting a
property at a higher level thanwhat you own.
So there's that reason.
But there must be a financialconsideration and incentive why
this is a lot more popular.
Speaker 1 (03:07):
Well, I think the biggest thing, the biggest
problem that I see with, withpeople um, not considering this
is they abstain, they wait andthey wait and they wait until
they can buy the perfectproperty.
And it's like property valuesare going up and up and up and
if it's costing you more to buythat property, you're just
(03:28):
losing money.
So if you get in sooner intoanything, so if you get into a
studio apartment, if you getinto a one-bedroom apartment and
you really want to buy athree-bedroom house, that's cool
.
Speaker 2 (03:40):
But just get into that one-bedroom or studio and
don't wait yeah, and I here, Ithink here are the numbers and I
remember with my apartment.
So you're looking at themortgage worked out, let's say
mortgage charter councileverything worked out to be
about 1400 a week, but it wasonly leasing for 550 per week.
(04:01):
So that's an example where tobuy that property.
But then I could go well, whatcould I rent for 1400 a week?
And that can take you tobasically a beachside property.
So you can see, especially withinterest rates now back up to
that, five, six, seven percent,this is a lot more impactful.
(04:22):
A few years ago, when peoplewere getting 1.9 1.8 percent uh
loans, there wasn't as big of asa a distribution between the
rental market and the land taxmarket and I think you hit on
something perfect which a lot ofpeople look past If they can't
(04:45):
buy what they want, as you said,they save.
But just because you don't wantthat type of property doesn't
mean it doesn't still haveproperty growth.
If you look at let's take DY,for example let's say units have
gone up 10%.
That's all units studios, onebedrooms, two bedrooms.
Speaker 1 (05:05):
People find it hard to believe.
Speaker 2 (05:07):
I know.
So you may want to buy a twobedroom home.
But let's say you've got theability to buy a $500,000
property and you've got 50 grandsavings.
Now you may be able to save 10%additional.
So 50 grand a year, that's anextra $5,000 a year.
But if you can buy a $500,000studio apartment, that goes up
(05:30):
10% a year, you're now saving,earning an extra $50,000 a year.
And what's going to get you tothat two bedroom faster, saving
five grand cash or getting 50grand equity Capital growth?
Speaker 1 (05:45):
Yep, spot on, spot on .
And it's pretty hard for peopleto fathom that.
They're like nah, mate, I wouldnever buy a one-bedroom unit or
I'd never buy a studio.
But the cold hard facts are, ifyou get in guys as a rent
fester and I speak with matureage people 50s, 60s, 40s, smart
(06:12):
and they're going you know what?
Yeah, no, I'm not going to doit.
I'm like, hang on a sec, you'vegot to do the maths.
Even if they're helping theirkids, I'm saying your kid's not
going to pay 30 grand in stampduty.
So I know you want your kid tolive in a two-bedroom unit.
That's $950,000 or $1 millionin DY.
But get them into somethingsub-8 and just get them to rent
(06:36):
it out.
And then that dream later youcan always sell that asset later
that you've rent-vested, so youcan have it for five years and
then sell it and buy exactlywhat you want, because there's
your savings plus the capitalgrowth you had in five years,
rather than just your savingsover five years.
Rent vesting, rent vesting,rent vesting.
It is good.
Speaker 2 (06:57):
Yeah, and I think I forgot the other part.
I was going to say but yeah,that virtually covers it and I
think, even if you've got a no,this is what it was a lot of
people are.
When you're trying to do yourfirst homeowners, you've got to
live in it for six months now.
You've got to do yes, yes solet's say, and only out of 10
(07:22):
purchases, only 10 percent arefirst homeowners, so our first
time buyers, if that so of youthis is going to apply to.
But for the people who are yourfirst time buyers, where you've
got to live in it for sixmonths, then your goal is to own
property for five, 10, 20, 30years.
What's six months?
If you have to live in it, orif you just sacrifice and pay
(07:44):
the stamp duty because you'rebuying something for 500 grand
let's say stamp duty is 12 grandAre you going to get more than
12 grand in rental income thatcould compensate for it?
Speaker 1 (07:53):
so well, you know, I'll see some people even just
leave it vacant, but you know,shouldn't do that, um.
But uh, the six month thing alsois a little bit of a myth
because it's a reasonable, it'sshowing a clear intention.
Um, you know, a reasonable uheffort, um, to live in the
property.
(08:14):
It's within a 12-month period.
So, yes, you can actually firstdon't buy, I can actually buy
that rent vest and not have togo into it for 12 months.
They can leave a tenant inthere for 12 months, the first
12 months when they do go inthat period you're talking about
, if they are funny, if theymove in and after a month they
(08:34):
are financially unfit, there's achange with work or something
they can move, they can move out.
But they had a clear intention.
So, you know, I know peoplealways say first time buyers are
going to be in there for sixmonths.
It's actually not a figure.
If you research it with thegovernment, it's showing
reasonable effort and that'sdeemed as, yeah, sure, six
(08:55):
months is probably reasonable.
But you know, if you're inthere for one month, two months,
three months, and you justcan't afford it and there's a
change, that's fine.
Speaker 2 (09:03):
Yeah, and I think where this rent vesting could be
very, very helpful is forfamilies needing who may have
that two-bedroom apartment andthey need that house.
And it's a big step on propertypurchase wise and mortgage wise
, where you may have 10 yearsago bought a two-bedroom unit
for, say, 600 grand.
It's worth 1.5 now, but thehouse you need is 3 million,
(09:27):
like we were talking about theother day, just like knocked
down in Freshwater was like $3million.
Speaker 1 (09:33):
So to be fine.
I can't believe that.
I can't believe that if youwant a little house in
Freshwater, I think we workedout what the mortgage would be
and it was just scary to have anentry-level house in a suburb
like that.
I even looked at theMarrickville I looked at.
I saw something sold inmarrickville for 3.1 million a
(09:56):
little cottage, and I'm thinkinglike that's, that's a hell of a
lot of money at six percentinterest rates yeah, like, and
that's it, that's probably justpaying interest, so let's go
four million it was four million.
Speaker 2 (10:07):
Let's do it eight percent principal interest.
Eight percent, that's 320 000 ayear you're paying.
So that's divided by 52 is sixthousand dollars a week now to
rent that house.
You're talking two grand a week.
If that, yeah, if that, if that, so you can get.
Speaker 1 (10:29):
So that's a big one that's a good one.
So buy a you know one, two,three bedroom unit.
Rent it out.
Go and rent your house inmarrickville.
Rent your house in marrickvilleand live there.
Least you've put your foot inthe door for the property market
.
That's our message today lookat this.
Speaker 2 (10:49):
So 2600 a week fresh water a monster, yeah she's a
mansion, there's your floor planwhat street's that?
That is 91 harvard road wow butsix grand a week there you go
(11:14):
well, that's right, be on thewater.
Speaker 1 (11:16):
Third, eight hundred dollars for a six grand mortgage
so you know, the message todayis just get, just get in there,
guys, just get in there.
Rent vesting is a is a bigthing at the moment.
We're seeing a lot of people doat the moment um, and and still
, even if you're in that firsttime by category, you can
actually still get your grant.
You're no stamp duty paidwhilst living in that property
(11:37):
for 1300 um, whatever rentvested, rent vested and talk to
your real estate agent about um,or do some really good research
on, or talk to your real estateagent about the grants, because
there's some serious grants outthere for first home buyers
that include you can use yoursuper as a first home buyer to
buy your first home.
(11:58):
People don't know.
There's um.
There's you, you can save taxto save a deposit.
Then use your super as a firsthome buyer to buy your first
home.
People don't know there's um.
There's you, you can save taxto save a deposit.
Then use your super as a firsthome buyer.
There's no stamp duty under 30grand.
There's um.
There's other save.
There's saving uh ones wherefor two and a half percent you
can actually, or five percentyou can buy a property deposit
and you don't have to pay LMI.
Speaker 2 (12:19):
There's about five different grants for first-time
buyers, not just one and justquickly, things to consider for
rent vesting is what can you buytoday?
So go, you need to go to abroker, what can you buy today?
And then look at the repaymentson that principal and interest
repayments and then go see whatyou can rent for that and then,
(12:41):
just to show you how better offyou are the property that you
can rent for the equivalent ofyour mortgage go see what that
mortgage is and what that isworth.
Speaker 1 (12:49):
If you go get those four figures, you'll have a good
idea if this is right for youI'm a dog with a bone with with
helping people get finance aswell, so if you think you can't
do it and you can't get into themarket, call me.
Call Birch, call me.
Speaker 2 (13:06):
Beautiful, thank you.
Speaker 1 (13:07):
Thanks, Mr Birch.
See you Bye.
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