Your Guide To Rentvesting
What is rentvesting and is it worthwhile?
Rentvesting is a trend that has been gaining traction in the investment world for the last few years, but what is rentvesting? And is it something that is worthwhile for you?
Whilst it might seem obvious by the name, rentvesting is a property investment strategy where someone chooses to rent and live where they love, whilst buying an investment property somewhere they can afford. Essentially it’s when you purchase one or more investment properties before you buy a home to live in.
Why would people rent whilst investing?
Rentvesting can be a valuable strategy, especially amongst younger buyers, as house prices in more popular or inner-city areas continue to increase. If it’s your first time hearing about rentvesting, you wouldn’t be alone in thinking that initially it doesn’t seem to make sense. Why would someone choose to both pay off a mortgage and pay additional rent at the same time?
And the answer is simple, rentvesting really gives the best of both worlds! You can get into the property market by purchasing an investment property that’s within your budget that isn’t necessarily in an area you’d like to live, and you can pay rent to live in the suburb you actually like.
You can get yourself on the property ladder and start earning rental income whilst also living wherever you like. If the ideal place for you to live is out of your budget for purchasing an investment property, rentvesting could be the strategy for you!
What are the advantages of rentvesting?
Rentvesting has a number of great benefits and advantages and it means you can get ahead in the property world without having to make any lifestyle sacrifices you aren’t yet willing to make. Whether it’s staying in the city for work and purchasing an investment property regionally or living in a trendy suburb of the city and investing in a more family friendly area, rentvesting offers a myriad of advantages.
At AllianceCorp we know there are so many benefits to rentvesting, especially for young people, here are some of the top advantages of rentvesting:
- Live wherever you want to
- Makes living in expensive suburbs more achievable
- Have the freedom to move around for work etc. rather than being tied down to jobs close to the property you own
- Invest in property without affecting your current place of residence
- Open up your investment pool to opportunities in other more affordable cities
- Potential for tax benefits from negative gearing
So, is rentvesting right for you?
When it comes to property investing, there isn’t a one-size-fits-all approach that’s going to work for every individual and every situation. When deciding whether or not to rentvest you want to consider your personal factors like budget and lifestyle considerations.
If you’re considering rentvesting or considering property investment you may want to contact us to chat to one of our experts about our range of services or check out our free masterclass for more property investment tips and tricks.