What is Rentvesting?

Rentvesting is about living where you want and buying where you can afford. Property prices are soaring across Australia that made many people drop the idea of owning a home altogether. Well, here’s good news, there is absolutely no rule that you have to straight away move into your newly built home and live there forever. Not doing so might help you achieve the dream of homeownership more quickly than you possibly thought.

One of the new trends is that homeowners are putting their property for rent instead of moving in straight away. What is the reason behind it? Well, this is a very well-known strategy in the world of real estate investment. This trend of “rentvestment” is a great way to use the rental income to help service your mortgages or rent for yourself a house to still live in your preferred area where you might be more comfortable. In this strategy, what you are doing is building a house and keep it on hold. 

The Build and Hold Strategy 

This strategy’s basic idea is to build on a property and hold it for a substantial amount of time. During this time, the property can either be rented out or had vacant until its value increases significantly. 

To have a better and brighter life, the need to climb the property ladder is essential. For this very reason reinvesting has become more popular among Australians. It’s just like having your cake and eating it too. 

A few benefits of rentvesting include: 

  1. Through reinvesting, you have the flexibility to live and move based on your lifestyle and preference. 
  2. By living in a rental house, the maintenance and property improvement expenses can be tax-deductible. 
  3. Over time, your income from the rent can help you pay the mortgage debt. 

But before you go ahead with this plan, you need someone to guide you properly. And for that, you have our expert team at Ridgewater Homes.

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