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In This Video:

00:22 Rent Money Is Dead Money
00:50 What Smart Property Investors Do?

Hi there! Damien here again. And the second video in my series of “What you were taught wrong in school about money”.

Rent Money Is Dead Money

Now one of the ones, that I hear all the time people say is “Rent money is dead money.” And guess what that is true but so as the interest on your loan. So you get all these people, who furiously get out into renting and then they go into their own home, then paying large amount of interest on their loans. Now that interest is not staying in your pocket. It’s going to the same place that your rent is going, which is somewhere other than you. So rent money is dead money but so as the interest on a loan.

What Smart Property Investors Do?

Here is the thing, smart Property Investors don’t actually live in their own homes. They lease their homes and then they buy investment property elsewhere. They still own homes and they are gaining their capital growth. But they are able to claim all of the expenses associated with the property that they own on tax. If you’re just living in your own home and slogging away, guess what? You can’t claim even on tax. And you’re not getting an income from that property in any way shape or form. In fact, as per my last video, your own home is a liability not a real asset. So when you hear someone saying “rent money is dead money” come right back up and say “so is the interest on your loan”. And living in your own home is not necessarily the better idea than owning investment property and renting the house you live in. In fact, I think it’s smarter to own investment property and rent your own place. Because then you can own those investment properties in the places where you‘re gonna get capital growth. You’re not force to buy one where you’re not necessarily had to live. And that’s it for me today. If you learn something from that, please comment, like, and share this post. Share the knowledge that people out there who are struggling financially you can spend the rest of their life without battling away because they don’t have this knowledge that hadn’t been taught at school. Please comment, like and share with your friends. Until next time, that’s it for me.

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