The Property Investment Strategy Changing Things In Australia – Rentvesting. In Australia, there’s a new property investment strategy on the rise that’s shaking up the market – rentvesting. So what is it? Rentvesting is when you purchase and live in a property that suits your lifestyle, while you rent an investment property that fits within your budget. This strategy has become increasingly popular in recent years as home prices have continued to increase in inner-city areas. Younger buyers are especially drawn to rentvesting as it allows them to get onto the property ladder sooner. If you’re interested in learning more about this strategy, keep reading – we’ll explore all of the details!
What Is It?
Rentvesting allows you to enter the property market without having to commit to a location or lifestyle. You can purchase an investment property in an area that is more affordable while renting a home close to work or near amenities in your desired neighborhood. It also means that you’re only paying for what you need and when it comes time to sell the investment property, you will have made a capital gain on the sale.
Flexibility With Lenders
Another benefit of rentvesting is that it provides flexibility when it comes to borrowing money from lenders. When applying for a mortgage, lenders take into account the value of both properties – so if one has more equity than the other, you may be able to borrow more against one and not the other. This can also be beneficial when it comes to tax time, as you may be able to deduct certain expenses incurred on the investment property and capitalise it against your income.
Building Wealth Sooner
Rentvesting can be a great way to get on the property ladder sooner and start building wealth. It’s important to do your research and consider all of the potential risks before making any decisions – but if done correctly, rentvesting could set you up for long-term success in the Australian property market.
In conclusion, rentvesting is an innovative strategy that has become increasingly popular with younger buyers in Australia. By investing in an affordable property and renting a home near amenities, this strategy offers flexibility and financial stability in order to build long-term wealth. If you’re considering rentvesting, be sure to do your research and understand the potential risks before making any decisions – but if managed correctly, it could provide the perfect opportunity for success in the Australian property market. Thanks for reading “The Property Investment Strategy Changing Things In Australia – Rentvesting”
