What’s the right way to invest in property?
Most people will tell you that you’ve got to buy your own home first to build some leverage.
Then, you use that leverage to invest later on.
But there’s another strategy that’s picking up steam that might help you start investing faster.
It’s called rentvesting and it’s so much more than just a buzzword.
The idea behind rentvesting is to make your first property purchase an investment that can generate an income…
…Then, you rent in a location where you’d prefer to live and work.
Or, you could stay with mum and dad while your investment property starts making money.
It’s an especially popular strategy among younger buyers who feel priced out of the market…
…Plus, it’s going to get you on the road to wealth creation a lot faster than buying your own home first.
Maybe you’re still not convinced…
…After all, almost everyone says that you’ve got to buy for yourself first before you invest.
The good news is that the faster route to wealth creation isn’t the only benefit of rentvesting…
There are a few more for you to consider:
- Rentvesting makes it easier for you to live and work in your dream location. Renting generally costs less than buying in that location, especially when you take deposits and other fees into account.
- You can start claiming several tax benefits for your investment property. For example, you could claim deductions on the interest you pay and the property’s maintenance costs.
- With rentvesting, you buy in a location that you can actually afford. That makes it an easier way to break into the property market and start building your asset base.
- If you invest in a rising market, you’ll soon build enough equity to buy another property. Your initial investment could help find your own home purchase. Or you could use it to keep building your portfolio.
It’s definitely an interesting strategy for anyone who feels like they’re priced out of their ideal market.
And at Dashdot, we can help you to find a high yield and high growth investment property with potential value adds. 👌
Just take our 15-second application to find out if we can take this journey together.