Rentvesting Journey: From Limited Funds to Rapid Portfolio Growth
Pratik saw this as an advantage and the amount of deposit and stamp duty was significantly less than purchasing PPOR, and therefore he was able to purchase sooner. Additionally, expenses related to the investment property, including interest, can all be tax deductible. Over time, his property appreciated in value, allowing him to leverage it to purchase a second property in Victoria
$155,000
Equity Growth across the Portfolio
01
Properties within 2 Years
46%
Growth on First Purchase
The Challenge & The Strategy
Starting with minimal capital, Pratik faced the challenge of entering the property market without compromising his lifestyle. He needed a strategy that would allow him to invest sooner, minimise upfront costs, and maximise potential returns.
Partnering with us, we crafted a tailored investment plan that leveraged the benefits of rentvesting. By purchasing a free-standing house in Queensland for $335,000 with a 10% deposit and LMI, Pratik was able to enter the market with significantly lower upfront costs compared to buying a principal place of residence. Additionally, expenses related to the investment property, including interest, became tax-deductible, further enhancing the investment’s financial viability.
The Outcome and Future Plans
Within four months of purchase, the property was revalued at over $400,000, allowing Pratik to refinance and recover his entire deposit. Twelve months later, the property’s value increased to $550,000, enabling him to acquire a second property in Victoria for $775,000. This strategic approach resulted in a 46% growth on his first purchase and a total equity growth of $155,000 across his portfolio.
Looking ahead, Pratik plans to continue expanding his portfolio by targeting high-growth areas and employing smart refinancing strategies to build long-term wealth. His journey exemplifies how strategic planning and leveraging available resources can lead to significant financial growth.
Key Takeaway
Pratik’s journey from limited funds to a rapidly growing property portfolio underscores the power of strategic planning and informed decision-making. By leveraging rentvesting and smart refinancing, he has laid a strong foundation for long-term financial success.
Purchase In Queensland
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$335,000
Purchase Price
-
2023
Purchase Year
-
$490,000
Estimated valuation 2025
Purchase In Victoria
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$775,000
Purchase Price
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2025
Purchase Year
-
$795,000
Estimated valuation 2025
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