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

• What he tells clients who are scared of prices falling further

• Why the tax narrative looks different once you know corporate tax was 49% in the 80s

• The question to ask the oldest person you know

CHAPTERS

00:10 Is rentvesting dead?
01:28 The rent increase Jack refused to pay
02:32 Has the YAM strategy changed since the budget?
03:52 The duplex: $5.25m, then $4.7m, then $6.5m
07:47 When valuers use a cap rate
08:20 What a dollar of rent is worth
08:52 The Paddington office at a 2.8% cap rate
10:06 Everyone's feeling battered. What now?
11:25 If you do nothing, will you get there?
12:21 Corporate tax was 49% in the 80s
14:56 Who actually pays the tax in Australia
15:43 Worried about valuations falling?
16:08 Off-the-plan carnage
17:22 The 5% deposit scheme and negative equity
19:19 The depreciation trap that creates a CGT bill
21:43 Will more finished properties come to market?
22:36 The only time to buy brand new
25:24 De-risking a falling market
26:13 Has the playbook changed?
28:09 So, for the AFR readers, is rentvesting dead?
28:46 Ask the oldest person you know
31:35 Buy a fast boat

GUEST LINKS
Jack Henderson, Henderson Advocacy: https://henderson.com.au/
Jack on Instagram: https://www.instagram.com/jackchenderson/

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