Rentvestment: Yes or No?
As long-term renting becomes more and more common among Gen Y, property markets around the world are seeing the rise of the Rentvester, someone who owns an investment property while they're still renting their home. It's certainly not the traditional approach, but is it right for you? Let's find out.
For a lot of Gen Y buyers, the only homes they can afford would be a significant step down from where they're renting, requiring them to move to a less accessible location, or a smaller home. An investment property means they can still live where they want, and get on the property ladder with an affordable place that can also potentially provide a good return later on, and increase their buying power.
By buying an investment property, you won't be able to claim the First Home Owners Grant when you do end up buying your first home. Investments also tend to have several ongoing costs, and while these are manageable, you'll generally want the security of owning your own property before you commit to making an investment.
What Do I Do?
If you're thinking of rentvesting, the first thing you should do is make a budget. How much money do you have left over at the end of the week, and can you afford to cover any unexpected expenses? If you're happy with what you find here, the next step is to see what you can afford, and research the area to see what kind of returns you could expect. There's more to it, but the main thing you should remember is to do your research before committing to anything.
If you'd like to know what's possible for you, you can always talk to any of our agents for a free, confidential consultation on your options, so get in touch with us today to see what we can do for you.