An increasingly popular trend, many first-home buyers are becoming a ‘rentvestor’ to enter the Melbourne property market: by beginning to build their investment portfolio whilst continuing to rent. Rentvesting allows buyers to purchase a property within their financial limits and lease it out whilst continuing their current lifestyle in an area often out of their financial reach.

Offering a different pathway to property ownership, rentvesting allows buyers to make the most of their income and get on the property ladder earlier. The rental income and tax benefits of investing, including negative gearing and depreciation, then helps the buyer to save a deposit for a home, increase their equity or invest again sooner.

Another key benefit is the flexibility rentvesting offers. Rentvesting allows a buyer to stay in their preferred location - close to family, friends or work, rather than moving to a cheaper outer suburb, but also offers an ability to adjust their living situation whenever personal circumstances change, giving more opportunity to travel and relocate for work if the need arises.

Whilst a well-purchased rentvestment can allow a positive cashflow, the potential implications of interest rate rises, capital gains tax and changes to tax laws could impact this – it is always beneficial to consult your accountant or financial planner before deciding to rentvest or committing to the purchase of an investment property.

For more information about rentvesting, investing or to find out more about how our investment growth strategy can help you, contact our award-winning property management team on 9091 1400.