Rentvesting, a popular property strategy in Australia, offers a flexible and attractive option for individuals seeking to enter the real estate market. Many people choose to invest in properties in areas where prices are more affordable than in major city centres like Melbourne or Sydney while opting to rent a property in the bustling heart of the city. This approach allows them to enjoy the benefits of a city lifestyle, including convenient transportation, dining, and access to quality schools.
One notable advantage of Rentvesting is the ability to generate income from investment properties, which can help cover the cost of renting in the city. This arrangement has gained popularity due to the escalating property prices in cities like Adelaide, Sydney, and Melbourne, which has made owning properties is some areas difficult for young, middle class Australians.
There is where Rentvesting comes in!
Rentvesting enables individuals to step onto the property ladder without sacrificing the perks of urban living. It accommodates those who wish to own a property in lower-cost regions while continuing to rent in the city, offering the best of both worlds.
With this investment strategy at hand, you have the freedom to live where you desire without financial constraints of owning property in the ever increasingly expensive areas like Sydney and Melbourne. There is also the potential for tax advantages when investing in income-generating properties. Additionally, as a tenant, you can enjoy the convenience of having the landlord handle expenses like appliance repairs. This is a major perk for anyone who’s been hit with a last minute expense from an investment property!
However, there are some downsides to consider. Tenants may need to make their rental property available for open house viewings or vacate if the landlord decides to sell, which can be inconvenient. As with any investment, it’s essential to stay within your budget and invest in properties that align with your financial goals.
Before embracing Rentvesting, it’s crucial to reflect on your priorities. If your lifestyle is of utmost importance and you are not ready to make significant sacrifices, Rentvesting might be the ideal approach for you.
PropHero is here to help if you’re considering purchasing an investment property. We have a team of licensed property coaches that will find properties based on your financial and personal goals. You can book a free strategy consultation here.
Rentvesting Explained
Rentvesting is a home-owning strategy that allows you to rent a property that aligns with your lifestyle while simultaneously owning an investment property that suits your budget.
As property prices in inner-city areas continue to rise, this strategy has become increasingly popular, especially among younger buyers.
At PropHero, we’re proud to say that we’ve help many young Australians, from 25 – 35 invest in property when they thought it wasn’t possible. With Rentvesting, it really is possible.
Why Choose Rentvesting?
At first glance, it may seem counterintuitive to pay rent and have a mortgage simultaneously. However, the decision to Rentvest depends on your financial situation, life stage, and lifestyle preferences.
For instance, if you are a single buyer looking to enter the property market but can’t afford your ideal home in the city, Rentvesting offers a solution. It may also be suitable if you’ve secured an excellent rental property and the timing isn’t right for a move, or if you are content with inner-city living but plan to move to a more spacious home in the future.
Rentvesting allows you to purchase a property and rent it out to cover some or all of your ownership costs while continuing to rent the home where you live. If your investment property generates a profit, you can use that income to offset your home rental expenses.
In the end, your overall expenditure may be similar to renting or owning a home, but Rentvesting provides you with the freedom to live where you desire and enter the property market.
With the right support, you can enjoy the lifestyle you desire while planning for a secure financial future. If Rentvesting aligns with your goals, consider scheduling a consultation with a PropHero Specialist – we’ll assist you in finding the perfect property!