Rentvesting: The Smarter Way to Enter The Property Market
In recent years, the term "rentvesting" has become increasingly popular. It simply means renting a property to live in while simultaneously investing in another property.
Rentvesting strategy is particularly very popular among younger generations. With rent rates at an all-time high, having achieved 11% growth nationwide in the last 12 months, young investors have a prime opportunity to get into the property market and reap the benefits of rentvesting.
It not only allows first-time property buyers to enjoy the benefits of living in a location that suits their lifestyle but also helps build equity in a property with better rental yields or capital growth prospects.
Let’s learn why Rentvesting can be a smart property investment strategy:
Lifestyle & Affordability
As a rentvestor, you can rent a place depending on your needs and budget. Rentvesting enables you to live in the area you want, without having to compromise on your lifestyle. It also gives you the flexibility to move from the location if it no longer matches your needs.
Enter the market sooner
Buying own home in the location you prefer can be expensive and may take a while to save for the deposit. However, you can get an early entry into the property market by using rentvesting as a strategy. It allows you to purchase something that fits you budget now.
Tax benefits
Owning an investment property can provide tax benefits which are often not available on owner occupied home. You can claim for expenses associated with the investment property such as interest on loan, maintenance, depreciation etc.
Building Equity
Investing in property can potentially provide capital growth over time, which can lead to increased wealth and financial security. While you continue to rent in your preferred area, building equity in your investment property could help you to secure your home a lot faster.
team soni can help
We have helped many Rentvestors to build wealth and diversifying their Investment Portfolio, while still living in their dream location.
If you are committed to starting or accelerating your property investment journey or looking to explore if Rentvesting is the right strategy for you, Team SONI can help!
Book your free Wealth Consultation today. A simple chat with our experts can help you clarify your questions and give you the confidence you need to get ahead. Working with our team:
✅ You’ll get an accurate understanding of your potential as a property investor.
✅ We will help you define your financial goals together with realistic milestones.
✅ You’ll discover personalised strategies to make your money work harder for you.
✅You will experience our proven system to help you reach your financial goals faster.