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Published on January 9th, 2017

Is rentvestment right for you?

If you're a home buyer struggling to find your way into the property market the traditional way, you might be worried that you'll never make it onto the first rung of the ladder. It's true – property prices in some capital cities are sky high, and while that is great for investors, it's difficult for many other buyers.

However, rather than simply give up on the property dream, you simply have to think outside the box. Many are turning to 'rentvestment', and it might be the right move for you too. Here's what you need to know.

Rentvestment: is it right for you?Rentvestment: is it right for you?

What is rentvestment?

You are reaping all the rewards of capital gains in the regions while still getting the lifestyle you are looking for in the city.

The traditional method of buying a home involves saving up a 20 per cent deposit on a cheaper, more rural property, and then paying off that mortgage. At the end of the mortgage, congratulations! You now own that home, and it might have even gone up in value along the way.

This does have it's own problems though. In order to find a home within budget, many buyers are having to head further and further out of the cities, making it tougher to find work and local amenities. For many people, especially young Australians, it isn't always an appealing (or even possible) solution.

Rentvestment, on the other hand, does away with this idea. Rather than buying your first, cheaper, more distant property as a home, you could buy it as an investment, then continue to rent in a home yourself nearer the city. This way, you are reaping all the rewards of capital gains in the regions while still getting the lifestyle you are looking for in the city.

Is rentvestment right for you?

Rentvestment is a popular choice for many buyers, but is it right for you? It's certainly not a magic bullet for all your property problems, but in the right circumstances, it could propel you into the property market far more quickly than the traditional method of buying.

The equity gains and rental income can help offset the increased costs that come as part and parcel of owning a home and renting one yourself. However, a downturn in the market for your investment property could make it tough to recover.

That's why it's important to make sure you get the right property if you are planning to rentvest. That's where the Elders Real Estate team can help. If you're interested in trying this unique route to home ownership, make sure you get in touch with us today.

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