5th Feb

An Introduction to Rentvesting: Unlocking the Property Market

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Unlock the property market with rentvesting! Learn why rentvesting is a popular strategy in Australia, what benefits it can offer and how to get started.

Rentvesting is an increasingly popular strategy in Australia whereby people purchase a property as an investment rather than buying to live in exclusively. It can be a great way for first time investors to get onto the property ladder and grow their wealth, without following the traditional first step of buy their own home outright.

The main benefit of rentvesting is that investors can purchase an investment property or multiple properties in suburban, rural or regional areas where typically prices are lower than in cities like Melbourne or Sydney. This allows them to take advantage of the lower prices and yields of properties located outside metropolitan areas, while still having access to all the benefits associated with city living such as work, transport, night-life, schools and infrastructure.

Furthermore, they can use the income from their investment properties to cover their costs, like rent, in the city, providing them with an additional source of income and potentially helping to reduce their outgoings. Even though investors are unable to benefit from government assistance such as the First Home Owners Grant when purchasing a property for investment purposes, this strategy can still be extremely beneficial thanks to tax incentives not available on a home you live in.

For many investors, rentvesting also provides a more achievable option for entering the property market. Instead of having to purchase a home in an area where prices may be prohibitively expensive, they are able to purchase an investment property and then rent somewhere they would prefer to live - providing them with the best of both worlds.

If you are considering taking your first steps into the property market, rentvesting is definitely something worth exploring further. The Property Mentors have extensive experience in helping people understand the advantages and risks associated with this strategy, as well as providing guidance on how to structure it for their own circumstances - so why not get in touch today to find out more?

Happy investing!