We recently took to Facebook Live, where we unpacked the rentvesting strategy. As the name suggests, this strategy combines renting and investing so you don’t have to sacrifice your wants and needs just to own a home.
What is rentvesting?
Rentvesting is a property investment strategy that works best when your ideal home location is outside of your budget.
With this strategy, you invest in a property in a more affordable location where you don’t necessarily want to live and rent in your dream area.
Who is the strategy best for?
The rentvesting strategy is most popular among…
- Younger or new buyers who may not have enough deposit saved to live in their desired area.
- People who are renting a home with others, and wish to get their foot into the property market in the meantime.
What are some of the pros of rentvesting?
- You can live where you want to live and don’t have to sacrifice your lifestyle to afford a home.
- You can build wealth through property investment.
- Rentvesting involves a more strategic investment than if you were buying a home to live in. Simply put, because you won’t be living in the property, it doesn’t need to suit your lifestyle needs. You can invest purely for investment purposes.What should you consider before rentvesting?
- As a landlord, you could face issues with tenants causing damage or not paying on time. You should definitely have landlord’s insurance if you’re using this strategy.
- Maintenance issues with the property could add unforeseen costs.
- Renters can’t freely modify their space to make it feel like home.
So, is rentvesting right for you?
Our advice for you if you’re interested in this strategy is to talk to a Rise High mortgage broker. They can go through your situation and further discuss pros and cons with you so you can ultimately decide whether it’s a good choice.
The earlier you reach out to a broker, the better! Today is the perfect day to get into the property market.
