When it is time to buy a home, a lot of people are conflicted over whether they should actually go ahead and buy one or would a rented property seem like a better option?
The fact that the property prices show no signs of coming down, several first time home buyers naturally go for renting a home than buying one. However, the property market is also noticing the emergence of a new trend: rentvesting.
What is Rentvesting?
What actually does rentvesting entail? It is a pretty simple, not to mention, clever concept. Consider that you want to buy a home in a specific area, but you cannot afford to because the area’s too pricy. Your current financial situation allows you only to rent that place, not buy it.
So you invest the money into renting a place of your choice and the money which is left over is invested into buying a more affordable property elsewhere. This affordable property that you just bought can be rented out to someone else. The money that you get from here can be used to pay the rent of the posh place you are living in. Buying investment property sure has its fair share of perks!
Rentvesting allows you to start living in your dream home sooner than later, even if you have a smaller deposit. You do not have to compromise on your wishes and desires. If a 4 room apartment in that area you saw is what you want, rentvesting is going to give you access to it.
Several property market experts consider rentvesting as a great way to start building your investment portfolio. The more impressive this portfolio is the easier it becomes for you to make future purchases.
Rentvesting also allows you to save money. The money that is coming from the rent others are paying you, you don’t have to use all of it. You can use this money to ultimately buy the home of your dreams when you come across one.
When you’re thinking of renting to own homes, you’re allowing yourself more flexibility in terms of trying out different areas to reside in before laying your roots in any particular one. Since you are not buying the place you have fewer things to worry about if you wish to try out a new neighbourhood. This move is also financially smarter.
Other than not being able to own a place of your own currently, is there any other con to rentvesting? Moreover, is rentvesting a good move for you? Perhaps talking it over with a property investment advisor can help you answer this question better. The rentvesting advice coming from them is going to be more reliable and hence can be followed more confidently.
Provided with what your property investment advisor tells you, you can go ahead and start looking into your options. Do you want to avoid making costly mistakes? A reliable property investment advisor can help you doing so! The investment opportunities that they present you with are already extensively searched upon so this way there is less risk involved in following them.