Best of both worlds

Rentvesting is becoming increasingly more popular in every part of Australia. Essentially, this concept sees you becoming both a landlord and a renter. Pick your favourite location, virtually regardless of its price, to rent out and at the same time, buy a cheaper property, more suited to your budget, as an investment.

In this way, you can enjoy living in a great house in a lovely suburb – despite paying someone else to live there. You’ll have also grabbed a foothold into the property market, much earlier than you ever thought possible, through your second investment. It’s the best of both worlds – just ensure you know what’s what beforehand.

Good things….

Rentvesting gives you a larger scope of the market to consider than average. That house you decide to rent is your ideal home and you can enjoy this dream without stressing about a big mortgage commitment. While you’re sitting back enjoying your perfect lifestyle, your equally new investment property is quietly chugging along, giving you an easy rental income every week and bit by bit, generating wealth and equity. Your investment may also give you a tax-deductible interest payment along with a bunch of other claimable expenses such as repairs, deprecation, fees, water rates, pest control, insurances and more.

….And bad things

While your investment might be doing great things, remember that as a tenant, your ultimate home is still not your own. You can’t make big changes to it without landlord permission and that same landlord may choose not to give you another renewal of your lease. You’re also still paying rental cash for it.

Consider this

While you’ll always want top-notch, reliable tenants in your investment property, it should ideally be a low maintenance space, which you can “set and forget” with a reliable manager. This house should be rising in value over time in an area that will enjoy solid capital growth potential. Ensure it’s bringing in strong rental income, remembering that you may still need more cash to cover other outgoings – plus you’ve still got your own rent to pay.

The big question

Whether rentvesting suits you depends on your budget, lifestyle, long term goals and similar. Explore, examine, do plenty of research and ask plenty of questions to ensure this possibility will benefit you. You may find it’s easier to simply buy a property and live there as an owner-occupier. But aim for a situation and a home that will tick all your financial boxes, both now and in the future. Good luck!

chrisbrown1224

Managing Director – New Vision Financial Services & New Vision Real Estate After years in the banking, finance & commercial sector Chris noticed that the industry needed a company with a personal touch that offered their customers a complete solution. In 2015 New Vision Financial Services was created to allow our consultants to use their experience (including approving and structuring large complex commercial transactions through to basic home loans) and to concentrate on offering a personalised service to their clients. With the growth and success of New Vision Financial Services a decision was made in 2019 to launch New Vision Real Estate to provide an end to end solution for client weather they be first home buyers or seasoned investors. Chris has built a team at New Vision Financial Services and New Vision Real Estate that have access to over 70 different lenders, insurers, lawyers, accountants and financial planners giving you more flexibility when making a decision. We offer a full service Real Estate agency offering Sales, Leasing, New Developments, House & Land and Commercial. Call me anytime on 0433 181 544 or email chris@newvisionfinancial.com.au The team at New Vision Financial Services have access to over 70 different lenders, giving you more flexibility when making a decision. Our consultants have had extensive experience within the banking, financial and corporate sector. At New Vision Financial Services we specialise in finance lending for home, investment, business, commercial, asset, debtor and many other requirements. As New Vision Financial Services has progressed, we have developed strong relationships with professional service providers such as; Financial Planners, Accountants, Settlement Agents, Leasing & Equipment Providers, Debt Management Specialists and any more to allow our clients access to a complete suite of services.