What do you do when you want to own property, but you can’t afford it where you want to live?
It’s called rentvesting.
Not familiar with the term? Rentvesting is when you rent your primary residence, but you also choose to invest in other properties to build wealth. Rentvesting allows you to rent a place to live in that’s right for your lifestyle, while you own an investment property that’s better for your budget.
It’s a strategy that has been growing with Millennials in Australia (and the USA) over the past couple of years. It’s helping Millennials get into property investment faster.
Is Rentvesting a Good Option?
Millennials aren’t the only ones choosing rentvesting to build wealth through property. So why is this unusual hybrid becoming so popular?
Renting and owning different properties can be a great way to give you the best of both worlds. If you’re an urban dweller, you could buy a property and rent it out at first to cover some or all of your ownership costs, while continuing to live in the home where you rent. If you have a rental you’re not ready to leave, rentvesting is a great option that allows you to start building wealth with property without moving.
So does paying a mortgage and rent really make financial sense?
That depends on your budget, lifestyle, and financial goals. For many, rentvesting allows them to get into property investment with lower costs up front, and they can still choose where they want to live while starting their property investment journey. If your investment property is earning you a profit, that could help towards your rent so that you can eventually take on full ownership of the home—maybe even re-investing in another investment property elsewhere if the opportunity is available.
Rentvesting Pros
Here are five reasons why rentvesting may be a good option for you.- Endless Living Possibilities. You can maintain your choice of living locale (AKA you can live where you want), and with today’s workforce continually being pushed to work from home… this is a HUGE plus.
- Low Maintenance Costs. Low maintenance costs where you’re renting (living). In other words, if there’s a problem with anything where you’re living, it will most likely be taken care of by the homeowners.
- Tax Benefits. You still get the incredible tax benefits of owning an investment property. Not sure how to get maximum tax benefits from a property? Talk to one of our licensed property specialists HERE.
- Income. You’ll receive income from your investment property when you rent it out. This money can either be used to pay down your mortgage or pay your rent where you’re living. A monthly mortgage rate is often less than a rental rate.
- Potential Capital Gains. If your investment property increases in value, you can sell it down the road for more than you paid for it.
We Can Help
Ready to start creating passive income with property? Think you’re ready to invest in one or more properties?
We can help! At OneCorp, we walk you through every step of the process at NO cost to you. We create a personalized property strategy and help you find the best opportunities on the market so you know you’re getting the best return.
Getting started on your investment property journey has never been easier:
- We start by helping you set clear goals and objectives as to what you want to achieve through property investment.
- From there, we run the numbers through proprietary software to accurately assess exactly what you need out of a property portfolio to achieve those goals.
- Lastly, we find the perfect property to make those objectives a reality!
