Why ‘rentvesting’ is perfect for millennials Posted on July 17, 2019July 17, 2019 by Arjun If recent headlines are to be believed, millennials are having a tough time when it comes to getting their foot on the property ladder. A couple of years ago, for example, it was reported that Australian millennials have the second-lowest home-ownership rates in the world, with only 28% of the country’s 18-26 year-olds owning the home in which they live. There are a number of reasons for this. As well as having to navigate an increasingly unaffordable property market, young adults today are under pressure to stay in metropolitan areas. Whilst the parents of millennials may have been happy to sacrifice their careers in a busy city in order to buy a house in a rural area, this is becoming less of a viable option in the modern world. Indeed, most lucrative job opportunities can be found in major cities nowadays, and many millennials find saving tough thanks to the rising cost of living and renting. This is where the notion of ‘rentvesting’ comes in. What is ‘rentvesting’? Put shortly, ‘rentvesting’ is a practice popular amongst Australian first-time buyers whereby they purchase an investment property in an affordable locale while continuing to rent in their city of choice. This allows them to maintain a vibrant metropolitan work and social life while building up a decent profit in the long run. ’Rentvesting’ is a great way for millennials to take control of their lives” ‘Rentvesting’ provides millennials with a steady flow of cash that offers them a degree of financial freedom they were unaware they could achieve. Indeed, compared to traditional owner-occupiers who make money through a salary alone, ‘rentvestors’ have extra income streams in the form of rent generated by tenants and certain tax benefits. Further to this, their choice of assets that can generate ‘capital growth’ is also spread nationwide, rather than just where they live. What’s more, ‘rentvesting’ also allows families to move around more easily. If they wished to move into a different school zone to provide their child with good education opportunities, for example, they could make the move more easily than if they owned their home.At InvestorKit, we have worked with many people who have been stuck in the middle between buying their first home or rentvesting. If you would like to discuss rentvesting in more detail with us to see how that may fit and be a part of your investing plans, simply click on the link below to book in a free consultation with one of our advisors. 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”