How Rent Vesting Helping you invest in the property market
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Many Australians are having a hard time getting into the property market and securing the purchase of their ideal home. With property prices at an all-time high and a competitive buyers’ market, it feels like a far-off dream for many. Rent-vesting helps buyers shift their perspective on how best to spend their money and get into the property market.
What is Rent-Vesting?
As the name suggests, “rent-vesting” allows you to be a property investor and renter at the same time. It allows you to live in the preferred suburb of your choice in a rental property while purchasing your own investment property and having the tenants pay your mortgage.
The Success Story of Sara and Mark
Sara and Mark, a couple in their mid-thirties living in Sydney, faced difficulties in securing their dream home. After being outbid at auctions, they decided to expand their search to Brisbane. They purchased a 4-bedroom home in Baldivis, Perth, and rented it out while renting a property in their preferred suburb in Sydney. This setup allows them to earn a profit from their investment property, live in their desired location, and build their financial wealth.
Overcoming the Property Market Conundrum
Rent-vesting seems to be the ideal answer to the current conundrum many Australians face: “How am I ever going to afford to buy the home I want in the Australian market?” It provides a solution for millennials who don’t want to sacrifice their lifestyle and struggle to save for a deposit. It also helps older Australians who find themselves starting from scratch with no investments, as well as growing families who need more space but can’t afford a larger property.
Entering the Investment Market
Rent-vesting allows people to enter the investment market by buying in outlying growth suburbs within a reasonable distance from major cities. By being strategic with the purchase price and rental income, individuals can enjoy a monthly cash flow and a property that appreciates in value.