A viable strategy
Traditional home ownership is changing. Where owning a home was once the norm, rocketing property prices have led to a change in the market, with buyers employing inventive strategies to get onto the property ladder.
Enter rentvesting: Renting your ideal property in your dream location – be it for career or lifestyle choice – while growing your property portfolio elsewhere.
Young people who are working hard to progress their careers but are unable to afford the inflated entry-level property prices in a big city, don’t need to forgo their home ownership dreams. Rentvesting could provide a viable solution for getting a foot onto the property ladder.
For many young home buyers, rentvesting offers the best of both worlds. Living where you want to with the flexibility you need to progress your career, combined with the opportunity to buy a property now before prices rise even further.
Rentvesting offers you a number of investment tax benefits, so it’s worthwhile discussing these with your accountant or financial adviser before making a decision.
And yes, you’ll still be paying someone else’s mortgage while renting, but your tenants will be doing the same for you: slowly chipping away at your mortgage debt while you continue to live where you want to.
In time, you may be able to tap into your investment property’s growing equity to fund the purchase of another investment property, or even your dream home.
Is rentvesting right for me?
Knowing whether or not rentvesting is the right choice for you will depend on your specific circumstances. If a lifestyle location is important or necessary to your career advancement, and if your long-term goals include building wealth through property, then rentvesting may be the right option for you.
Get in touch with a Best Mortgages adviser to talk through your financial options and to find out more about rentvesting.