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Rentvesting – Advantages of Renting and Property Investing

rentvesting property investing

Rentvesting – Advantages of Renting and Property Investing

Rentvesting is simply renting one property to live in while investing in another property for capital growth.

The current economic situation is locking out many home buyers from the suburbs they wish to live in because of unaffordable prices. There is some good news for such people though. You can get your dream home without wrenching out all your incomes and savings.

Rentvesting is a trick you can use to do just this. This concept revolves around buying an affordable property in a reasonable suburb and renting that property off to other tenants. Once you start generating income from the rentals, you can get your rent your dream house. Then you can pay off the monthly bills and rent by the incoming rent from your own property.

This may seem like a backward approach because you are being asked to invest your money before purchasing a property; but this can be the smartest way to gain the ownership of a property in the current economic climate.

Advantages of Rentvesting

The first and foremost advantage of rent vesting is the ability to bring yourself into the property market as soon as possible. Therefore you can begin building up profits and generating income as a property investor.

Since you will be buying a relatively cheap property, the deposit payment will also be much lower. So you do not need to save up for several years before you can afford the down payment. Many home owners are burdened by rents due to which they cannot afford to save up for a deposit and buy a better home for themselves. So when the deposit goal is reduced, you can easily save that amount and move into a rented property, better than your current home. This way you will be able to afford the rent of the better house by the payments coming in from the tenants of your actual property.

Renvesting balances lifestyle and investment goals

The best part about rentvesting is that you do not have to sacrifice on your lifestyle. In fact, you can improve your lifestyle by moving into a bigger, better home and a more lavish suburb. You can use the investment property and build up your savings to a home near the beach or the city – whichever is more appealing to your preferences. You can work towards buying your dream home without the burden and hassle of getting huge loans and debts thrown over your shoulders.

If you think you can afford it, you may even want to consider buying multiple investment properties. This approach can help you build up a larger pool of savings in a much shorter span of time. This could also allow you to buy a more expensive house in almost the same time.

You can strategically build your property portfolio within a short period and start reassessing, selling and even reinvesting! Rentvesting has helped so many people to get themselves a better home and this concept. The concept is quickly spreading throughout the world as the perfect option to get into the property market.

 

REALas predicts property prices

REALas predicts property prices – Australia wide including auctions and private sales.

Between April 2016 and May 2017, the median accuracy of REALas predictions was within 5% of the final sale price. REALas predicts potential final sale prices for properties currently advertised for sale.

Search REALas property price predictions.

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