Could rentvesting get you onto the property ladder sooner?

If you ask a lot of prospective first-home buyers where they can afford to buy, the answer will often be different to the question of where they would like to live. As a result, those buyers may think this will mean they will have to move to an area that isn’t their first preference. What if there was another way? What if buyers could get onto the property ladder without having to sacrifice the lifestyle they know and love?

The good news is there’s a solution and it could be just what you’ve been looking for: rentvesting.?

As the name suggests, rentvesting refers to purchasing a property as an investment in an area you can afford while renting in an area that you’d like to live in.?

Rentvesting has become increasingly popular as home purchase prices in inner-city areas have gone up at a rate that means they are often not affordable for many young buyers.

There also may be tax benefits when it comes to rentvesting including potential negative gearing benefits and tax deductions. These will vary depending on the circumstances so it’s important that you chat to your accountant for any tax-related questions regarding your property.

Importantly, it means getting into the market to be able to take advantage of potential capital growth. Waiting to be able to afford to buy in an area you want to live in could become an arms race as property prices tend to go up over time. Rentvesting means you already have investment in the property market and over time, it is possible that equity can enable you to purchase another property in an area you would want to live in.

If you’re looking to get your foot on the property ladder and want to know if rentvesting could be right for you, get in touch. We’re here to help.