In case you haven’t heard of it before, Rentvesting is an increasingly popular strategy among home buyers, particularly those looking for an alternative way to get their foot in the door of the property market.

Typically, a rentvestor will purchase an investment property, or even more than one investment property, in an area where prices are lower than their preferred area. These are often outside the metropolitan area in a regional or rural location.

These rentvestors will then rent a property in the area they are keen to live in, such as a high demand inner suburb or city location, where they can enjoy all the lifestyle benefits they value such as transport choices, cafes, restaurants and highly regarded schools.

The idea is that they can enjoy the lifestyle they aspire to, (but can’t afford to buy into), whilst still reaping the benefits of property ownership in another area. Their rental income from their investment is often used to offset their rent on their residence in the process. Of course, there can also be tax benefits in owning an investment property as well.

It’s worth noting that there can be some drawbacks to this strategy, particularly in a rental market such as we have today where there is so much competition for rental properties. You may also have to move house more often depending on your property owner’s plans.

As is always the case when weighing up different strategies in today’s property market, it is important to get objective advice from experienced property and financial advisors before you commit to a plan. But don’t forget, if you need any help or guidance in making your own plans a reality, our team at Barry Plant Moonee Valley are always happy to have an obligation-free chat about your options. So feel free to give us a call on 9373 0000.

Cheers,

Bill Karp

Director – Barry Plant Real Estate

Essendon, Keilor East & Gladstone Park