If buying your own home still seems out of reach,
consider buying a home for someone else instead.
‘Rentvesting’has become a buzzword lately.
It’s a brilliant strategy for those who either
can’t afford to buy where they want to live.
Essentially, rentvesting is buying an
investment property where you can afford it in order to get on the property
ladder, while you continue to rent where you want to live.
That way, you can be close to employment or
lifestyle factors you enjoy, while someone else pays off the mortgage for you.
Rentvesting is also a strategy that suits those who want
to buy a property but need the flexibility to move around for employment.
One of the big differences between buying a rental
property and your own home is the tax benefits.
Investment properties boomerang money back to you
through depreciation, negative gearing, and other deductible expenses that
can really boost your financial standing to lenders.
It could be the extra weight you need to tip the
scales.
You might choose an investment property in an
affordable bracket; you might choose a home you’d like to live in one day but
can’t afford to just yet.
Either way, having a tenant paying down your
mortgage, while you rent elsewhere, means you’re holding a tangible asset that’s
progressively growing in value.
Remember:
The earlier you start in the property market, the
more time, leverage, and compounding will work for you.
Also, buying a property that’s within your means
will make saving for a deposit an easier and more achievable task.
Using equity to springboard into purchasing other
properties is also a proven and time-honored strategy used by many of
Australia’s 1.8millioninvestors to grow wealth.
Millennials aren’t an exception to the rule.
Times have changed, but the method is the same:
save, sacrifice, and have a plan that sets you up for a financially secure
future.
Now is the time to take advantage of the
opportunities the current property markets are offering.
RealRenta has all the tools that a property manager
has, but at over ¼ the cost of a property manager.
Join now and the cost is less than a cup of coffee a
week to manage your rental property
RealRenta also has a free vision, so why not check it
out
Jason Gwerder
Monday, 20 September 2021
