With property prices on the rise, many 30 somethings are wondering how they will ever get a foot on the property ladder. Rentvesting is the answer to growing wealth and living where you want to live.
You may have heard the term rentvesting being bantered around. Basically, it’s the approach of renting where you want to live and work while owning a property where you want to invest. Whilst rentvesting isn’t a new concept, it’s certainly becoming more popular with the increase in Sydney property prices and can be the perfect way to get started in the property market.
Benefits of rentvesting
Enter the property market sooner. Rentvesting allows you to break into the property market sooner with a smaller deposit, as opposed to waiting several years until you can afford your dream home.
Live the lifestyle you want. If rental prices allow, you can live in your dream home now and not have to compromise on location or features.
Build wealth. Rentvesting allows you to start building your investment property portfolio, which can be used to generate wealth and security for yourself and your family’s future.
Tax benefits. You can claim interest payments on your investment property loan as a tax deduction.
Research is the key to a successful rentvesting strategy
Where you want to live and the best place to buy an investment property often won’t be the same, so rentvesting allows you to be strategic when it comes to choosing an investment. This means you can make investments that return the greatest capital gains and get you on the road to building a successful long-term property portfolio.
Richard Sheppard is the Managing Director of inSynergy Property Wealth Advisory. inSynergy provides professional property investment advice, property market research, specialised mortgage broking services and is an accredited investment property buyers’ agent. Visit www.insynergy.net.au or phone 1300 425 595.
Important Note and Warning: This information is general in nature and should not be considered personal tax advice. We highly recommend you discuss these concepts with your accountant, property investment adviser and investment finance mortgage broker jointly to ensure any considered concepts are suitable for your personal financial situation, as one effect of the concept may negatively impact another part of your plan.