Getting a foot on the property ladder today has seemingly never been further away for cash-strapped and housing affordability-challenged Australians. Young and old alike are struggling to save enough; and when they accumulate sizeable savings they may find house prices have moved even higher, keeping the dream of owning their own property just out of reach.
Although Australia still faces relatively low official interest rates, the recent long run of property price increases has seen First home buyers finding it especially difficult to get a foothold in the property market.
Getting Creative about Solving Housing Affordability
This has forced some creative thinking about how to break into the market at a time when it seems so difficult. So, along comes an idea with a quirky name, Rentvesting, which many consider to be a possible solution for those wanting to get into the property market but who are held back by rising prices and difficulties saving.
Matt Ivers, from Vision Property & Finance, Sydney, is very familiar with Rentvesting. He has dealt with numerous clients who are using the strategy to meet the challenge of one day being able to afford the house of their dreams.
“Rentvesting is a system that can help people get into the property market who would otherwise find it difficult to buy a house.”
Rent, and then Invest to Buy
The main idea behind Rentvesting, says Matt, is that you purchase an investment property rather than buying a house to live in yourself. Instead, you rent where you want to live, and at the same time, you are receiving rental income from your investment property. This helps to boost your income to levels which will, one day, enable you to buy a house in an area you really want to live in.
New Spin on an Old Idea
Rentvesting is not a new idea, says Matt. “This is the same kind of strategy which has been used for decades, whereby, people would live with their relatives – Mum and Dad – while they saved up for a house deposit.”
Rentvesting also allows people to live in a suburb that is closer to their ideal, while their rental property is it located in a more affordable area.
“At a certain point in time,” says Matt, “the Rentvestors either sell their investment property and put the proceeds towards their very own home in the area they would much rather live in, or, they keep the property and use the rental income to help them pay the mortgage.”
“The strategy can have good positive cash-flow, whether you invest in real estate, or, as some do in other income-producing assets.”
There is even a popular podcast on the subject and easy-to-find resources available for people interested in learning about the Rentvesting lifestyle.
Are you are interested in Rentvesting?
Call 1800 004 663 or contact us to speak with our dedicated and highly experienced team to give you the very best advice when it comes to getting on the property ladder. Or visit Vision Property & Finance today and check out our industry-leading programs.