Hey there! Are you a millennial struggling to afford a home of your own? Don't worry, there's a strategy that might work for you called Rentvesting.
This approach breaks the traditional rules of homeownership that the older generation preached about, but why should we always listen to them? We've also learned to safely make connections online and use rideshare apps to get home, even though our parents warned us against it.
So, what is Rentvesting exactly?
It's pretty simple - you rent a place to live in your desired location while investing your money in real estate in a more affordable area.
This way, you can maintain your desired lifestyle and live close to your work, family, and friends, while also building equity in your investment property and creating wealth.
That's why it often makes more financial sense to rent in your desired suburb and invest in property elsewhere.
Plus, if your budget is limited to apartments, it may be more financially beneficial to invest in landed property in a different area.
Of course, Rentvesting isn't for everyone, so let's take a look at some of the advantages and disadvantages.
Advantages include maintaining your desired lifestyle, finding more affordable markets than your desired area, having greater flexibility in future plans, and having investment expenses be tax-deductible.
On the other hand, disadvantages include decreased security through renting, higher loan-to-value ratios required, sacrificing first home buyer grants (although this can be mitigated by investing interstate), and being liable to land tax and capital gains tax.
If Rentvesting sounds like the right fit for you but you're not sure how to get started, you can ask Oli to run through some scenarios with you and guide you on your investment journey.
...
SUMMARY
Millennials struggling with home affordability can opt for Rentvesting—renting in desired locations while investing in more affordable areas, given that only 7% of Australian suburbs offer cheaper homes to own than to rent. This strategy allows for lifestyle maintenance and wealth creation through property investment. For guidance on Rentvesting, consult Oli to navigate your investment journey effectively.
This marketing material and its contents is provided for general information purposes only. No part of this marketing material constitutes any advice (financial, tax or otherwise), recommendation or representation to you as to any decision which you should make. You should not use any part of this marketing material to form the basis of any investment decision made by you. Before making any investment decision, you should take independent advice from a professional adviser which takes into account your individual needs and circumstances. All information, opinions and estimates contained in this marketing material are subject to change without notice. We disclaim to the greatest extent possible all liability whatsoever for any loss howsoever arising directly or indirectly from this marketing material or its contents.