How ‘Rentvesting’ can help you break into the property market.
It’s no secret that house prices in Melbourne are on the rise. And, despite the slight dip in the market earlier this year, home prices in Geelong have increased by 1.6 per cent in the last three months, and are set to continue to increase into the new year.
With house prices and a subsequent need for rental properties on the rise, there is no better time to be a property owner in Geelong.
While the rise in property value is great news if you already own a property, it may leave you feeling disheartened if you are looking to make your first move towards breaking into the property market.
Although it may feel like you will be stuck at home or in rentals forever, don’t stress too much. When there is a will, there is a way, even in the property market. And this ‘way’ is called Rentvesting.
But what exactly is Rentvesting?
Put simply, Rentvesting gives you the freedom to live in the neighbourhood of your dreams while you own and rent out a property in a suburb that you can afford. One-third of first time home buyers Rentvested in the last year alone, and they really could be onto something.
There is no definitive answer on whether renting or buying is the best option. There are many things to consider before dipping into the property market like your financial situation, if you have any long term travel plans or if you might need to take an extended period of leave from work.
In some Geelong suburbs, tenants are opting to live in rentals as it is actually a smarter financial move than taking out a home loan. For others, buying a property is a financial sacrifice tenants are willing to make to become homeowners.
In the long run, it is almost always best to own property- especially if you are able to rent that property out and leverage it as a bonus stream of income. However, with rising prices breaking into the property market can seem incredibly unattainable and a plan for ‘one day’ but not right now.
Currently, saving for a house deposit can take up to nine years on average, and paying off a mortgage is not a financial burden many want to deal with. While renting is a viable solution if you have a steady income, your hard-earned savings are going towards paying someone else’s mortgage, and not your own.
With Rentvesting, you can have the best of both worlds- and that is why 36% of first home buyers are using this clever system. You live where you want and buy what you can afford giving you the freedom to use the money you make from your investment property to pay for your rental bills.
While Rentvesting might seem like a no brainer, there are a lot of responsibilities that come with owning and renting our a rental property while living in a rental yourself. With your property management is not up to scratch, you could incur unexpected expenses- especially if your property suddenly becomes un-tenanted.
To efficiently take advantage of a Rentvestment opportunity you will need solid property management support. Hiring a property manager will ensure that your Geelong investment is looked after, filled with tenants and will take the hassle of check-ins and bookkeeping off you which is especially great if your investment property is a drive away from your rental!
Your property manager will help maximise the return on your investment property and take the pressure off you from having to be a landlord and a renter at the same time. Contact us at Fresh Property Management if you are ready to make smart property moves, or are just after honest, helpful advice and support on renting and leasing properties.