“Compounding is the 8th wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” – Albert Einstein
When it comes to investing, we all understand that numbers in must be greater than numbers out, however this is not a regular occurrence within Sydney property anymore. I remember a time when houses would sell for $180k - $350k, a time when FOMO should have truly existed in the housing market. Of course, no one could have predicted that prices would go up 7x that within 2 decades and the socioeconomic environment back then wasn’t as disposable as it is now with the change in generations.
Our parents who slipped this golden opportunity to become super wealthy off the “safest” option being property made sure all millennials developed a severe case of FOMO. Who else is familiar with “in this country without equity you have nothing” or “if you don’t get in now, you’ll never get in!”? Here’s the thing though, our parents only had information for us relative to their own experience in the environment they faced.
Millennials’ are risk takers, ask your parent if they ever left a job without having another lined up.
With this being said, why did all these millennials get so easily convinced that property was such a big deal? And why are they going for the “safe” option? It doesn’t really add up, how can the generation that wants to change the world and will do anything it takes settle for the safe over priced option? Well we are here now, and millennials have come to the rescue with an awesome way to save over $25k per decade on your investment property with no agent property management.
We are all so use to the status quo of the industries we are indirectly involved in that we fail to think outside the box, lets reflect on a few changes we have seen just over the past few years alone. Before Uber we had no choice but to call for a cab and hope that it arrives, before Netflix came along, we had to make 2 trips from our house to watch a single movie, one to get the movie and one to return it. I don’t think I know anyone who didn’t accumulate late fees.
It’s time for a revolution.
Apps are now the dominating force in technology, every sector is getting automated and it was only a matter of time till property followed. But unlike the rest of the industries, the savings within property could be hundreds of thousands of dollars to users. Let’s take a look out the frequency of savings by using Netflix- a rental movie was about $4, an average person would rent let’s say 5 movies a month and accrue fees of about $5 on late fees being modest. $25 a month slashed to $12 a month, that’s a 50% saving and you get unlimited streaming.
Now let’s take a look at Instarent- the average landlord pays about 5% in property management fees, with give or take about $800 all up to list and let the property. 5% on $700 per week is $2,500 per year, lets add the $800 once every 3 years on a new tenant into the equation. We now have $25,000 in property management fees along with $2,400 in paperwork fees per decade. That’s an astonishing $27,400 per decade the average landlord pays per property, over the length of the loan it rallies to $82,400.
What about all the fundamentals and fine print?
Instarent has you covered! The app boasts a range of useful perks and features, such as the loaded tenancy agreements which are signed electronically between landlord and tenant then stored on the cloud. We have also added in extra features like maintenance services- from the tenant requesting a job to the tradesman selected, there is complete transparency amongst the users. Landlords will no longer be blind sighted, tenants will be heard, and tradesman won’t waste their time quoting jobs that don’t yield a return.
All data that’s put into the app is stored indefinitely on a fully secure server that meets Australian and global security requirements.
Is it safe?
Instarent is hosted by Amazon, integrated with PayPal for payments and meets global security requirements. Instarent is the safest and simplest form of agent free property management, completely free too!
Click here to view our app explainer videos