Owning an investment property while living in your ideal location – it’s a dream for many! But it can seem unattainable, especially for first-home buyers.
Yet more people are finding a way to make this lifestyle achievable through an approach called rentvesting.
Rentvesting allows you to build wealth through real estate investment while renting where you want. It’s a financial hack for the best of both worlds.
Interested in how rentvesting could help you achieve your dream lifestyle?
In this blog, I explain everything about rentvesting – what it is, how it works, and why it’s surging in popularity.
What is Rentvesting?
Rentvesting is a trend helping everyday people build wealth through property investment.
It involves buying an investment property that makes good financial sense and then renting it out to cover the mortgage. At the same time, you rent another property in a location you want to live in – like near the beach or downtown.
So you get the benefits of an investment property along with the lifestyle perks of living where you love.
How Does Rentvesting Actually Work?
The mechanics are simple:
- Research: Research property and rental prices in different suburbs to find good investment opportunities that fit your budget.
- Invest: Use your deposit and mortgage borrowing power to purchase a rental property in an affordable area with strong rental demand.
- Rent Out: Rent out the investment property and use the income to repay the mortgage.
- Live Your Dream: Rent a separate property for yourself in any suburb you want to live in.
It’s that easy! The key is finding the right investment property that will positively cash flow with enough rent to pay down the mortgage.
Why Rentvesting Rocks: Enjoy Both Lifestyle and Investing
Rentvesting offers many attractive benefits:
- Financial flexibility: For first-home buyers, rentvesting allows you to enter the property market without taking on a huge mortgage. Smart property investing is a safer way to gain control of your finances.
- Live where you want: No need to compromise on lifestyle or settle for a location you don’t love! Rentvesting means you can live in your dream suburb or near the beach.
- Balance investment and lifestyle: Rentvesting is all about harmony. It ensures you don’t have to choose between a sound investment and a fulfilling lifestyle.
5 Steps for Home Buyers to Begin Rentvesting
If you’re keen to embark on a rentvesting strategy, follow these tips to get started:
- Partner with a trusted buyer’s agent
- Speak to a broker and accountant to assess your budget and loan options.
- Research the best areas for cash flow-positive investments.
- Find a property with suitable rental demand that will cover the mortgage.
- Inspect the property thoroughly and have your solicitor review contracts.
- Locate a suitable rental for yourself in your ideal suburb.
And voila – you’ll be on your way to rentvesting success and living the dream!
Avoid Property Investment Pitfalls in Rentvesting
While rentvesting can turbocharge your investment journey, it does take careful planning and research to get it right. Be sure to avoid these common rentvesting mistakes:
- Overestimating rental income potential
- Not accounting properly for all costs
- Failing to inspect the property thoroughly
- Rushing into purchases without professional advice
- Not having adequate buffers or insurance
By partnering with the right property, legal and financial experts, you can avoid costly errors and make rentvesting work for you long-term.
Rent Smarter, Live Happier
Rentvesting offers an excellent opportunity to fast-track your wealth through property investment while still enjoying your ideal lifestyle. With the right research and professional support, you can successfully invest in your financial future without compromising your quality of life.
Want to find out more about making rentvesting work for you?
Get in touch today to discuss your goals and take the next steps toward investment success and living well.
Let’s connect – I’m here to help you rent smarter and live happier! My team and I can provide the guidance you need to start rentvesting and achieve the investment returns and lifestyle you desire.
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Connie Mastroianni is a licensed Buyer’s Agent and Vendor’s Advocate with a background in Colour and Design. With two decades of collaboration with Sydney’s top architects, builders, and developers, she offers unparalleled insights. Connie’s assertive negotiation style and vast experience make her an invaluable asset for buyers and sellers alike. Her empathetic approach, coupled with professional advice, ensures clients’ emotional and financial needs are met.