Rentvesting as an alternative way to get into the property market

With the ever-increasing property prices, many millennials think that they don’t have enough money to get into the Australian property market. It is time new property owners consider rentvesting as an alternative way to get into the property market. 

How does it work?

It’s an incredibly simple concept where you rent the home you live in, and buy another home that earns you rental income as your investment property. As much as you may not be eligible for the First Home Buyers Grant, the pros of a well-selected investment property by a buyers agency without the emotions attached can significantly outweigh a grant.

What are the benefits?

Maximise your return on investment

Instead of waiting for several years to break into the property market, rentvesting allows you to do it with a smaller deposit as you can target buying nationally (where prices differ from market to market). A good buyers’ agency can help you find a secure, rare, positive cash flow residential property with the best possible outcome. Climbing up the investment property ladder sooner becomes a reality as you are not bogged down with debt on your own home that doesn’t earn an income.

On top of allowing you to break into the Australian investment property market faster, rentvesting gives you a better opportunity to save the deposit for your dream home, in your dream location through future capital gains. Additionally, you can claim tax deductions across various parts of the investment property (which can be confirmed by an accountant).

Live wherever you want

One of the most common sacrifices first home buyers make is location. Aussies no longer have to live far away from the city where the property is cheaper or be forced to take a big long-term mortgage to live in their dream home. Good news is that you can live the lifestyle you want, and still, earn an income from your rental investment property acquired with a lesser deposit.

Renting gives you the liberty to upgrade or downgrade the house you live in. You can easily change your residence according to the prevailing circumstances, without incurring legal costs or stamp duty expenses. Renting also allows you to ‘try before you buy’ and know whether a particular suburb is a perfect fit before committing money towards it.

InvestorKit is here to help you secure a commercial or residential investment property that can put money back in your pocket with an added upside for growth. Contact us today for property investment advice that aims to not compromise your lifestyle.