To many, renting sounds like a dirty word. After all, all that rent you pay is dead money. At least that’s what most of us have heard from our parents. An often-neglected benefit of renting is that in many cases it’s more affordable to rent than buy. That means you could rent in a location you couldn’t afford to buy in. What if there was another option generations past didn’t contemplate; what if you could have your cake and eat it too? According to data released by Mortgage Choice, more than one in three investors in 2015 and 2016 where entering the property market for the first time.
This group of Australians are often referred to as rentvestors, a creative amalgamation of rent and invest. Who said financial services professionals weren’t creative!
What are the benefits of Rentvesting?
- Benefit from the lifestyle of an area at a lower cost
- You could invest in a location with robust growth potential and rent where you want to live
- Enter the property market sooner
Rentvesting: A Case Study
*Land rates and maintenance totalling $3,000 per year
For ten years, Daniel has compromised lifestyle for the perceived security of owning his own home. He’s also cost himself $186,000 ($474,000 – $288,000) over a ten-year period by buying in a market with lower growth potential.
Rentvesting can allow you to have a better lifestyle without forgoing the benefits of property ownership. Perhaps you can have your cake and eat it too. Here’s how we can help:
- Area research – find out where you should buy to increase the probability of outperformance.
- Property research – We negotiate with sellers on your behalf so you know exactly what to buy.
- We save you time – we’ll arrange solicitors, property inspections and help you secure a tenant.
- Support – we support you through the full process from property selection right through to rental management