Living in cities like Sydney and Melbourne can be extremely expensive,
as median home prices have risen to nearly a million dollars.

Many people aspire to acquire a property in these expensive neighborhoods. However, this can drastically limit your financial flexibility.

High mortgage costs can deplete finances and this reduces your ability to invest in other profitable prospects.

If you want to begin your property investment journey, here’s something you can do instead which is a strategy called Rentvesting. So what is Rentvesting:

Rentvesting can be useful for perhaps someone who is single and wants to get into the property market but the home they want isn’t in their price range. Or maybe you’re happy with inner-city living for now and know you can’t afford to buy there but you can afford a property 40 minutes outside the CBD.

Rent where you want to live

Renting in pricey places helps you to enjoy your desired lifestyle, without the financial strain of a large mortgage. This makes more funds available for higher-yielding investments which you can place your money into.

Invest where it makes sense.

Seek investment opportunities in affordable locations with robust development potential, this may be suburb with long term growth plans when considering population growth, infrastructure, location, public transport etc.

This strategy, known as “rentvesting,” which enables you to benefit from the increase in value of a property which can eventually see you using the equity you have built up now used to fund your own home to purchase.

Moreover, rental income is generated in markets where your capital yields will pay down costs associated with the loan.

Leverage Your Flexibility

Renting allows you to relocate in pursuit of better employment opportunities or lifestyle changes without being constrained by a mortgage.

Utilise this adaptability to your advantage by investigating various investment markets.

Focus on Financial Goals

Keep your living arrangements and investment decisions separate to make more strategic financial decisions.

This will enable you to prioritize investments that are consistent with your long-term financial objectives and keep the emotional attachment out of it.

Rather than being restricted by the necessity of owning a residence in a high-cost region, you can work your way up to eventually live in a home you are comfortable with for the long term.

By living where you love and investing where it matters, you can achieve both financial stability and personal fulfillment.

Separating lifestyle and investment decisions is an effective method for maximising your dollars and living the life you desire.

Are you ready to rethink your approach to property investment?

Let’s discuss how to make the most of your lifestyle and financial choices.

So if you are asking yourself ‘Is this strategy appropriate for me?’ Contact our office to discuss what is best for your investment planning needs. Please reach out to our office on 02 9188 1547 and you will get through to our Oran Park or Norwest/ Baulkham Hills location, alternatively you can fill out the contact form and an Adviser from our office will contact you.

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The information in this website and the links has been prepared for general information purposes only by our office and does not take into account your personal objectives, financial situation or needs. It is not intended to provide commercial, financial, investment, accounting, tax, personal or legal advice. You should, before you make any decision regarding any information, strategies, or products mentioned on this website, consult a professional financial advisor to consider whether it is suitable and appropriate for you and your personal needs and circumstances.