In recent years, Rentvesting has gained popularity, particularly among younger and first-time property buyers looking for a flexible way to enter the market. A combination of “renting” and “investing”, Rentvesting allows you to live in your preferred location while purchasing an investment property in a more affordable area. This strategy provides the best of both worlds, the lifestyle you want and a foothold in the property market. However, like any investment decision, it’s essential to assess whether it aligns with your financial goals and circumstances.
Rentvesting offers financial flexibility, enabling you to enjoy your preferred lifestyle without overextending yourself on a mortgage. In areas where rent is significantly lower than mortgage repayments, this strategy can also create substantial financial benefits by freeing up cash flow and building long-term wealth through property investment. If you’re considering Rentvesting, our team can provide personalised advice to help you determine if it’s the right strategy for you.
Take for example this Melbourne couple in their late 20s, a Business Analyst earning $93,000 and an Accountant earning $108,000, who chose Rentvesting as their pathway to property ownership.
Rather than buying in their preferred suburb of Glen Iris, where they rent, they leveraged their $145,000 in savings to purchase a $480,000 investment property in Newtown, Queensland. With an 83% loan and an LMI waiver for the female applicant, they secured an investment generating $480 per week in rental income.
After settlement, they retained $40,000 in savings, allowing them to maintain their lifestyle while benefiting from long-term capital growth and rental returns.
Contact us today for expert guidance tailored to your financial goals.
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