More and More Australians Are Into Rentvesting
Rentvesting as an investment strategy in property is gaining popularity in Australia.
It refers to a strategy where an individual buys a property that fits their budget and rents it out to facilitate renting a house themselves, one that may better suit their lifestyle.
According to the Australian Bureau of Statistics, approximately 340,000 Australians are currently rentvesting.
Benefits of Rentvesting
Rentvesting has the following upsides:
If you are interested in real estate but do not want to buy a property, you may try real estate investment trusts (REITs).
Downsides of Rentvesting
Be sure to check out these risks before you use rentvesting as your investment strategy:
Before You Sign Any Rentvesting Contract
Is rentvesting the right strategy for you? It all depends on your investment goals and personal circumstances.
One way to figure out what is suitable for your situation is to do your due diligence.
Study the market well and assess your current skills, knowledge, and risk tolerance if you can build your wealth through rentvesting.
Frequently Asked Questions
Rentvesting is a property investment strategy where you own a property and rent it out so you can live in another location that you prefer according to your chosen lifestyle.
As property prices in Australian cities have increased over the years, rentvesting is becoming popular, particularly among millennial property investors.
Home ownership in Australia has been plummeting since 2016 while the prices of property have been increasing. That is why more and more people are renting instead of buying.
Real estate investing is a traditional way for Australians to build their wealth and often a lifelong dream. But other people are fine with renting as it suits their goals and lifestyle.
But is renting better than buying, or vice versa? To answer this question, you need to assess your lifestyle and your priorities.
For people who want more stability, buying a property is a better choice. On the other hand, if you value flexibility, rentvesting might be a better option.
Buying an investment property to convert it into a rental business, then renting out your own place somewhere else is known as rentvesting.
This is now an extremely popular strategy for young property investors who want to enter the real estate market at an early age but needs a place that is closer to their work or suitable to their chosen lifestyle.
Just like any other investment strategy, rentvesting has its risks, so you need to carefully consider this approach before you get started.
Rentvesting can be a bad investment strategy if not done right. Remember, you will become a landlord yourself, which comes with many responsibilities.
Without careful planning, running a rental business in a remote location may take your time and requires knowledge and skills such as time management and patience.
Rentvesting can be a smart strategy but may still become a major headache if you are not prepared.