It’s no great secret that it’s getting harder and harder for first home buyers to get a foot on the property ladder. First home buyers are increasingly finding themselves desperately trying to save sky-rocketing deposits for their first homes, and massive increases in property values have pushed first home buyers further and further from the communities they want to live in.
So, it’s no wonder that so many first homebuyers are looking at ‘rentvesting’ - an option that allows you to live in the area you want, while still getting onto the property ladder - as an option.
In simple terms, rentvesting means you purchase an investment property, rather than buying a house to live in yourself. It allows first home buyers to get a foot on the property ladder, while still staying in the communities they want to live in. Put simply, you buy a house as an investment in an affordable area, and you continue to rent near your work, family, friends, favourite cafes or wherever you choose.
There many benefits to rentvesting. While not a new strategy, it’s become increasingly popular as property prices in Australia’s capital cities have skyrocketed and can be the perfect way for you to get started in the property market, building capital and your investment portfolio while maintaining the lifestyle you want.
Is Rentvesting Right For You?
Rentvesting is likely to suit you if you want to:
- Get a foot on the property ladder but can’t afford inner-city prices
- Continue to live in the area you love, near work, family friends or your favourite cafes or night spots.
- Dramatically increase your tax deductions - owning an investment property is far more beneficial at tax time than owning the property you live in.
- Have an adjustable budget. Renting your primary residence gives you a lot more flexibility in your budget and allows you to easily upsize or downsize your residence as your personal needs change without the expense of buying and selling your home each time.
- Enjoy a greater profit potential. You can buy purely based on the growth potential of the area, rather than the personal characteristics you want for your primary residence.
Rentvesting isn’t for everyone, but it makes a lot of sense for many investors. If some of the points above sound like you and your needs, it might be worth looking into rentvesting
You’re welcome to contact us to learn more at a free appraisal, whether you’ve saved a deposit yet or not.