Not only are the vacancy rates across the country at their lowest, an increasing number of tenants are finding it next to impossible to find a property to rent.
But George Markoski, who has built a multi-million dollar property portfolio and is also the founder of Property Positive, said it’s time for renters to “stop moaning and start owning”.
“I feel for renters, it is really hard. But they need to start becoming property owners,” Mr Markoski said.
“Home ownership across Australia is low because everyone wants things on a platter. People complain that it’s too hard to buy property and that properties are too expensive. That couldn’t be further from the truth.
“Properties are really cheap because it’s not the price of property that matters but what it costs out of your pocket every week. If you look at weekly expenses, it’s pretty similar to what it was in the ‘80s.”
Lately, property investors, said Mr Markoski, have received a lot of criticism and are being blamed for the current rental crisis.
“It’s unfair to blame investors who are getting hit from every side. We need more properties to rent. With APRA tightening regulations a few years ago, it made it very hard for investors to invest. They were also penalised and charged more money for a loan as compared to an owner-occupier.
“The pandemic has only exacerbated the rental crisis as when Covid hit Australians came back to their properties. With Air BnB coming in, there have been even less long-term rentals on offer in the market. The situation is only going to get worse.”
For someone who owns 40 properties around the country, Mr Markoski said the solution to the crisis is in “rentvesting”.
“The first step is to get the right mindset. Most people don’t realise they can be property owners or investors. You can only achieve what you believe,” Mr Markoski said.
“The second step is to save money, cut down on expenses and set aside 10 to 20 per cent to build a deposit. Once you have that, you need to get educated. You need to invest the right way so that you don’t lose money.
“When you buy a house to live in, you pay for everything yourself, you don’t get any tax deduction. But when you get an investment property, you have the tenant helping you, the tax man helping you and it’s a lot easier to own.
“Usually, if you buy as an owner-occupier, it will cost you $600-$700 a week. If you get an investment property instead, you will be making $50 a week.”
The property investor is also working on his next book with Robert Kiyosaki, author of the bestseller Rich Dad, Poor Dad who owns more than 8,000 properties.
The post ‘Stop moaning and start owning’ is property millionaire’s advice to renters appeared first on realestate.com.au.