How rentvesting lets you live with your heart but invest with your head

With less than 5% of Australian suburbs offering cheaper homes to buy than to rent, rentvesting can be a strong property investment strategy to get you started on the property ladder.

If you’re a Millennial or Gen Z struggling to afford a home of your own, there’s a property investment strategy that might work for you. It’s called Rentvesting. 

This approach breaks the traditional rules of homeownership that say the best way to buy your first home is to downgrade your expectations until you can find a place you can afford to live in permanently. It’s time to think outside the box. 

So, what is Rentvesting exactly? 

It's pretty simple - you rent a place to live in your desired location while investing your money in real estate in a more affordable area. 

This way, you can maintain your desired lifestyle and live close to your work, family, and friends, while also building equity in your investment property and creating wealth.

Did you know there are currently only 189 suburbs nationally where it is cheaper to own a house than to rent?  

That's why it often makes more financial sense to rent in your desired suburb and invest in property elsewhere. 

Plus, if your budget is limited to apartments, it may be more financially beneficial to invest in landed property - ie: a house - in a different area.

The advantages to rentvesting include maintaining your desired lifestyle, finding more affordable markets than the area where you wish to live, having greater flexibility in future plans, and having investment expenses be tax-deductible. 

On the other hand, disadvantages include decreased security through renting, higher loan-to-value ratios required to secure your loan, sacrificing first home buyer grants (although this can be mitigated by investing interstate), and being liable for land tax and capital gains tax.

If Rentvesting sounds like it could be a good fit for you but you're not sure how to get started, we’d love to help. The Oli Property team can run through some scenarios with you and guide you on your investment journey. 

Book a Discovery Call. 

This marketing material and its contents is provided for general information purposes only. No part of this marketing material constitutes any advice (financial, tax or otherwise), recommendation or representation to you as to any decision which you should make. You should not use any part of this marketing material to form the basis of any investment decision made by you. Before making any investment decision, you should take independent advice from a professional adviser which takes into account your individual needs and circumstances. All information, opinions and estimates contained in this marketing material are subject to change without notice. We disclaim to the greatest extent possible all liability whatsoever for any loss howsoever arising directly or indirectly from this marketing material or its contents.