The Rentvesting Podcast: For Gen X and Y Property Investors
About This Show
If you're a property owner, investor or looking to get into the market this Podcast will help cut through the hype, look at the facts and draw on decades of experience to help you make smarter property decisions.
The Rentvesting Podcast is for Gen X and Y Property Investors. If you’re a property owner, investor or looking to get into the market The Rentvesting Podcast will help cut through the hype, look at the facts and draw on decades of experience to help you make smarter property decisions.
Each week Red & Co Director, and Award Winning Finance Broker Jayden Vecchio will unpack the facts behind the property market, explain what’s really going & where the market is heading.
Are you ready to make better property decisions and learn to live where you want, but invest where you can afford?
Most Recent Episode
Which is the better investment for me? Property Vs. Shares it's the Showdown of the Century, Find out Which Performs better and Which Makes More Money?
5 days ago
In this week's episode of the Rentvesting Podcast, we're going to talk about the battle of growth. There was an article in the AFR about the growing number of Millenials investing in the stock market. So we're looking at the pros and cons of property verse shares and which one is better, in both situations. Louis is going to be fighting for shares and Jayden will fight for property, and we're going to battle it out. Round 1: Pros - Property, leveraged. Being able to leverage property is a clear advantage for property. If you invest $100k in shares verse property, the return of property will be a lot higher. So the big pro with property is that it's leveraged because if you get 10% return on property you'll make more than 10% return on shares. According to residential property returns, they sit at 9.9% compared to Australian shares at 8.7% - gross return. Pros - Shares, higher yield, no outgoings. With shares, you'll get higher income per yield, so after costs and outgoings, that $100k can still earn similar income to property overall. With property, it depends on where you are buying your property, obviously, the higher the yield will affect it. As with shares, it's the same. You can buy some mining stock that won't ever pay a dividend because they don't really have earnings but generally, there are mid-capped to large capped shares that pay fully franked dividends. Telstra at the moment is paying a yield of 7.5 excluding franking credits. That's from an income point of view, fairly sexy. Shares have franking credits, this is where the company has paid tax and out of the profit they pay you a dividend when you receive that income you pay your marginal tax rate but you'll get some franking credits back and it works out as a tax effective income. This is exclusive to Australian shares, on American and European you don't get franking credits. But you can invest in Malta. So obviously pros and cons to both. Pro - Property, no capital gains when living in it. Another property pro is that if you're living in it, it's hugely lucrative tax-wise as there's no capital gains tax when you sell it. Con - Shares, capital gains tax. Whereas shares you the get the capital gains tax when you sell. You will be asses