5 Creative Ways To Make Money in 2025 from Property Investment While Working Your 9-5

Summary

In this episode, the speaker shares five money-making property investment strategies you can implement while working a full-time job. These strategies include tax-effective approaches, cosmetic renovations, combining tax savings with renovations, options trading, and vendor financing. He explains how to leverage these methods, with minimal effort, to build wealth without leaving your 9-5 job. A more complex sixth strategy involves combining options and vendor financing for high returns. The speaker encourages viewers to engage with the content for more detailed insights into each strategy.

Takeaways

• 😀 Takeaway 1: You can build wealth through property investing while working a full-time job by using strategies that require minimal time and effort.
• 😀 Takeaway 2: The first strategy involves buying a principal place of residence, living there briefly, then renting it out to avoid paying capital gains tax on the property after 6 years.
• 😀 Takeaway 3: A simple cosmetic renovation (e.g., new flooring, paint, upgraded countertops) can significantly increase the value of a property, leading to a profitable sale with minimal investment.
• 😀 Takeaway 4: Combining the principal place of residence strategy (Strategy 1) and cosmetic renovations (Strategy 2) can maximize both tax savings and return on investment.
• 😀 Takeaway 5: The options strategy allows you to secure the right to buy a property at a set price in the future by paying a small fee upfront, benefiting from price appreciation without committing to the full purchase.
• 😀 Takeaway 6: Vendor finance enables you to purchase a property and finance renovations or other improvements without needing your own funds, letting you increase its value and sell it for a profit.
• 😀 Takeaway 7: By combining the options strategy (Strategy 4) with vendor finance (Strategy 5), you can control a property, make improvements, and profit from increased value without significant upfront costs.
• 😀 Takeaway 8: These strategies allow you to take advantage of rising property markets with minimal cash outlay and little time investment, making them ideal for people with busy jobs.
• 😀 Takeaway 9: Many sophisticated property investors use these strategies while still employed, gradually building wealth until they reach a point where they can work full-time on property investing.
• 😀 Takeaway 10: If you want more details on these strategies, engaging with property investment groups or seeking professional advice can help you understand how to implement them effectively.

Q & A

What is the principal place of residence strategy in property investment?

The principal place of residence strategy involves buying a home to live in, staying there for a period (6 months, 12 months, or longer), and then renting it out as an investment property. The key benefit is that when you sell the property, you can avoid paying capital gains tax, even if it was rented out for up to 6 years.

How long can you rent out your principal place of residence before selling it tax-free?

You can rent out your principal place of residence for up to 6 years and still avoid paying capital gains tax when you sell, as long as it was initially your home.

What is a cosmetic renovation, and why is it recommended for property investment?

A cosmetic renovation involves low-cost improvements like repainting, replacing flooring, resurfacing countertops, and updating fixtures. It is recommended because it requires less investment (usually under $20,000) and can yield a high return, often increasing the property's value by tens of thousands of dollars.

Can you really make a significant profit with a cosmetic renovation?

Yes, you can make a significant profit. After completing a cosmetic renovation for $10,000 to $20,000, you could sell the property for $60,000 to $80,000 more than what you paid for it, after accounting for renovation and selling costs.

How can combining the principal place of residence strategy with a renovation boost your returns?

By combining these two strategies, you can benefit from the tax-free capital gains of the principal place of residence strategy while also adding value to the property through renovations. This can lead to much higher returns, sometimes in the range of $500,000 or more, depending on the property’s appreciation and the improvements made.

What is the options strategy in property investing, and how does it work?

The options strategy involves paying a small upfront fee (usually $10,000 to $20,000) to secure the right to buy a property at a set price within a specific time frame (6, 12, or 18 months). You can benefit from property value increases during that time without having to purchase the property until you choose to exercise the option.

What are the main advantages of the options strategy?

The main advantages of the options strategy are minimal upfront investment and the ability to ride the wave of market appreciation. You can make significant returns without needing to fully buy the property, and if the market doesn’t perform as expected, you're not obligated to complete the transaction.

What is vendor finance, and how does it work in property deals?

Vendor finance is when the property seller provides financing for the buyer, either covering part of the purchase price, renovation costs, or other related expenses. This allows the buyer to invest without using their own capital and can be used to fund renovations or property improvements.

How does combining vendor finance with a renovation strategy benefit an investor?

By combining vendor finance with a renovation strategy, an investor can purchase and improve a property without using their own money. The renovations increase the property value, and the investor can sell the property for a profit while the vendor's funds cover the costs.

What is the benefit of combining the options strategy with vendor finance?

Combining the options strategy with vendor finance allows an investor to secure a property at a fixed price, benefit from market appreciation, and have the vendor finance the cost of any renovations or property improvements. This reduces financial risk and upfront costs, enabling higher returns with minimal capital investment.