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The perks of rentvesting revealed

investor-stories
1 minute read

The perks of rentvesting revealed

by Cameron Micallef 18 February 2020 1 minute read

Property investors priced out of the major metropolitans can look at rentvesting as a strategy to grow their capital without adding mortgage stress, a property investor has advised.

Stephen Kuper
February 18, 2020

In a recent episode of The Smart Property Investment Show, local investor Stephen Kuper explained why he is avoiding buying in the area he lives in and decided to focus on steady growth in regional areas. 

“I’m still not sold on buying a property in a major metropolitan area. I mean, I grew up in Wollongong and I’ve seen the property prices in my home city get ridiculous,” Mr Kuper said.

As a recent ME bank study noted, currently nearly 50 per cent of mortgage-holders are feeling financial discomfort due to large mortgages – something Mr Kuper would like to avoid.

“We’re constantly hearing that at least 50 per cent of Australian mortgage owners are in mortgage stress. And I’m sitting there thinking, ‘Bloody hell, we’re at the record-low interest rates, what’s going on?’” 

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“So, yes, I’m not sold on buying in the major metro areas yet. For me personally, I dont see the return on it. And theres a whole heap of permutations that go into making the assessment,” Mr Kuper noted.

He also highlighted the lack of space where he currently lives in the Inner-West of Sydney as a deterrent for investing in the metropolitan area. 

“Its a shoebox. You couldnt swing a cat in it. So, you kind of sit there and go, ‘Is it worth it?’ You know, I couldnt imagine spending that money in it not being a family home,” Mr Kuper said.

Instead by focusing on regional areas, Mr Kuper has been able to focus on “set-and-forget” properties as investments.

“Theres also having the places that Ive acquired the long-term kind of ‘set-and-forget’, theyre going to just steadily increase in value. Ive got really good property managers, and Ive had a history of really, really good tenants so far, knock on wood.”

Finally, the property investor explained that by avoiding city purchases, he is able to achieve a personal goal of purchasing three properties by 30.

“Im 29. Im 30 in a couple of months and Ive always had this plan that I wanted three investment properties by 30, so as long as I have it by 30 or before 31, Im happy. Ive kicked my goal,” Mr Kuper concluded.

The perks of rentvesting revealed
Stephen Kuper
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About the author

Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your... Read more

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