#524 Is Rentvesting Dead? w. Jack Henderson

The AFR reckons rentvesting is dead now that negative gearing has been wound back. Jack Henderson reckons the AFR has it backwards, and he's paying $3,700 a week in rent while he says it.

This one moves fast. Jack explains the valuation method most property investors have never heard of, where a property with two incomes on one title gets valued on its rent instead of on what the neighbours sold for, and walks through the duplex where that difference was worth more than a million dollars. He puts a number on what a dollar of rent is worth in value.

He gets specific about the off-the-plan settlements he thinks are about to go wrong, and the capital gains tax bill you can get on a property that never went up. And he ends with the single piece of research he tells every young investor to do before they touch anything.

Language warning. Jack talks the way Jack talks. This one isn't for the school run.

WHAT YOU'LL GET OUT OF IT

Why rentvesting still works without negative gearing, and where it stops making sense

The cap rate valuation method, and why it only applies to properties with multiple incomes on one title

Jack's duplex, a $500k paper loss that became a gain by not subdividing

What a dollar of rent is worth at a 5% cap rate versus a 3% cap rate

The off-the-plan settlements about to land 20% under contract price

Why depreciation can hand you a CGT bill on a property that didn't grow

The only time Jack thinks you should buy brand new