The pros and cons of rentvesting Posted on April 19, 2019April 19, 2019 by Arjun Rentvesting is a term that describes purchasing an investment property, leasing it out and then renting a different property where you’d prefer to live. The goal with rentvesting is to get your investment portfolio started while maintaining your preferred lifestyle. Let’s take a look at a few pros and cons of rentvesting: Pros Live in your ideal location When buying a property, your options are limited by your budget, which means that many people end up buying and living in a property in a location that they can afford, but not necessarily where they would like to live. With rentvesting, you can both buy a property you can afford while at the same time living in a place that’s convenient for your lifestyle, so you can get the best of both worlds while starting your investment portfolio. Financial benefits The earlier you can get into the property market, the better. With rentvesting, you can build a foundation for investing and reap the financial benefits later on. If you’re smart with your investment choices and seek advice from a buyers agency, you may be able to find a positive cashflow property with an added upside of capital growth. Saving that extra money with added equity growth will stand you in good stead for when you start to look for your dream property. Cons Paying someone else’s mortgage When you rent, the money that leaves the bank account each week is not going to your own mortgage as it would have had you purchased your own home to live in. Instead, you are paying someone else’s mortgage. Some can’t cope with this, whilst others find that the lifestyle benefits and the reduced cost and risks with renting outweigh the con. Moving around Some landlords may prefer a longer lease and some shorter, moving to a new property every six months or twelve months may not be fun. Having to go through the process all over again can be extremely stressful, and according to online mortgage marketplace, HashChing, 56% of rentvestors scored the process a six out of 10 on the stress scale. If you’d like more information on rentvesting, get in touch with the experts at InvestorKit, and we can get you started on your investment property journey. chat Request your positive cashflow property consultation Disclaimer - Contents of this document are of general nature only and should not be relied upon solely when making an investment decision. InvestorKit nor any of its directors, associates, staff, or associated companies bear any liability from any action derived from the contents of this email. One should always seek third-party investment information from relevant parties such as legal, finance, and accountancy enquiries. Want our top tips for finding investment properties that PAY YOU? The top eight strategies to consider when searching for positive cashflow investment properties What a positive cashflow property looks like ‘on the books’. In other words, you’ll see an example cashflow analysis clearly demonstrating HOW a property can pay YOU every week And much more. Get Your Free “Positive Cashflow Property Checklist”