Tuesday 23 Oct 2018
It’s all about location in real estate, but what happens if where you want to live and what you can afford are two different things? This is a common predicament, and has led to the tactic of Rentvesting.
So what exactly is Rentvesting? Rentvesting is where aspiring home owners purchase a property as an investment that fits their budget, whilst living in a rental where they would rather live. Rentvesting gives the opportunity to get into the property market without having to sacrifice lifestyle.
Often this tactic of home ownership occurs for people looking to live in the CBD, but can only afford to buy in the outer suburbs where travel would take too long to get to and from work each day. Another popular reason for the current trend of Rentvesting is interstate buyers looking to grab a property in a hot market that they don’t want to live in but want to get their foot in the door for.
A key consideration when thinking whether Rentvesting is for you is how much you can afford to borrow and repay, whilst also renting. It’s essential to seek professional advice on assessing your ability to repay both a mortgage and rent, as you could be stuck paying both if your tenants suddenly move out. When done right, Rentvesting is a smart decision – but it does require appropriate groundwork.
If you want to discuss your options for Rentvesting, get in touch with Collins Realty Group and we can advise you on where to start – getting professional help is key to successful Rentvesting.