Rentvesting is a popular strategy with first home buyers who want to get into the property market but don’t want to give up their inner city lifestyle.
Rentvesting suits people who don’t have equity in another property to leverage and are struggling to save a deposit.
Rentvesters tend to live in metropolitan locations or affluent suburbs where paying rent is cheaper than mortgage repayments, at the same time, investing in reasonably priced property in outer suburbs.
This way they generate rental income to pay the mortgage of their investment and with capital growth on the investment, can leverage the equity when they decide to buy their own home.
When considering an investment property, do your homework on the
- Location
- Property condition
- Rental yield
Also when Rentvesting, also consider:
- How much you will be paying in rent
- A budget to ensure you leave within your means
- Strategies to maximise your ROI & negative gearing benefits
- holding in to your investment property for more than 12 months so you can pay less Capital Gains Tax
- Use a Self Management Platform like RealRenta to avoid paying thousands in unnecessary management fees.
Join the growing number of smart Aussie Property Investors by cutting your costs using RealRenta to automatically manage your residential investment property.
You will never use a Property Manager again:https://app.realrenta.com/Signup.aspx
