The New Property Investment Strategy; That Allows You To Live Where You Love.

March 30, 2017News

Discover The New Smart Way To Enter Into The Property Market.

Would you like to buy a property but sometimes thinks it’s out of reach?

Do you want to enter the property market and still maintain a lifestyle you enjoy?

Do you feel like you can’t save your property deposit at the same pace that the property market is rising?

Good news is there is a innovative method to invest in property while maintaining a lifestyle you love.

 To begin by using an analogy from a great Australian sport in conjunction with the great Australian dream – The goal posts to owning your home are changing.

The sustained rise of property prices most notably in Australia’s capital cities, continues to stretch home buyer’s affordability parameters and has led to the modern property investment strategy known as ‘Rentvesting’.

The coined investment phenomenon ‘Rentvesting’ has become increasingly prevalent as an innovative means of property ownership, especially in capital cities.

Property prices in capital cities have appreciated significantly and savings for home deposits have been unable to keep up. Consequently, first home buyers are pursuing other avenues of entering the property market without having to forego their current lifestyle.

Rentvesting – The Modern Method of Property Ownership Defined.

Rentvestors’ purchase an investment property in more affordable parts of the city or in regional areas and rent that property out whilst remaining as tenants in their current location and maintaining their current lifestyle.

The benefits are ‘Rentvesting’ are as follows:

  • The comfort in maintaining your currently living arrangement and lifestyle whilst gaining access to the investment property market
  • Access to the property market sooner by reducing the initial savings and borrowings required to enter the property market
  • By reducing the initial outlay, ensures interest repayments are more affordable, helping to minimise the risk of home loan default
  • A smaller loan would mean less susceptibility to interest rate movements
  • Purchasing property on a smaller scale could allow for multiple properties to be purchased over time and create geographical diversification
  • Strategic property purchasing based on investment analysis rather than emotional preferences can provide superior growth outcomes
  • The debt is for investment purposes. The interest repayments are an allowable tax deduction. Whereas owner-occupier mortgage the debt is personal and non-deductible
  • The ability to build equity in an investment property can be used to purchase an owner-occupied house in their desired location

The traditional strategy of entering property as a first home buyer has shifted and the modern strategy is instead becoming ‘Rentvestors’.

If you’d like to find out more about how you can start growing your property investment portfolio.

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Article by Scarlett Financial Team