Could rentvesting be right for you?

Most Australians would agree that buying a home has gotten increasingly more difficult in recent years. The vast majority (87 per cent) of non-property owners are concerned about being able to afford property, according to CoreLogic.

That’s where rentvesting comes in. A new approach to home ownership, rentvesting allows you to enjoy the lifestyle of renting while still building equity in a property. Could it be a good option for you?

What is rentvesting?

Rentvesting is a new investment strategy where you continue to rent your primary residence while purchasing property elsewhere and letting it to tenants.

This has become popular due to the fact that many Australians can no longer afford to buy the homes they’d like to live in. When you rentvest, you can afford to live in the four-bedroom home that you couldn’t buy.

Key benefits of rentvesting

There are major advantages to rentvesting, as it allows you to

  • Enter the property market sooner,
  • Build wealth,
  • Move and enjoy the flexibility of a renter,
  • Save longer for your dream home,
  • Enjoy certain tax incentives.

Rentvesting isn’t for everyone, however. It’s important to make sure you have the knowledge and resources to run an investment property or else hire a property manager. Otherwise, you’ll be taking a backwards step on the path to owning your forever home.

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