Rentvesting: New Mantra of the First Home Buyers
John Hilton writes an article for the website Your Investment Property wherein he talks about the idea of living “in your dream home” and investing in properties at the same time. You can say it may be a tricky proposition given the way cost of properties is increasing. So let’s not waste any time and look into how Hilton aims to achieve this goal.
‘Rentvesting’: an idea adopted by FHBs
New data shows that 36.6% investors are first home buyers. What this alternatively means is that more and more people are looking to invest in properties before buying their own home. Imagine this number was only 21.1% last year. Buying your property in a dream area can be difficult but living in such areas on rent and making investments in relatively affordable areas can certainly be the way ahead. This is what many ‘rentvestors’ are successfully doing today.
Various advantages of the move
Not only do you get to avail various tax advantages, you get to live in your dream home and indulge in a better lifestyle. Yes, there are implications of the decision, too; the risk of repayments being one such example.
You can read the original article here.
An idea that explores perfect balance
This is a great way of balancing finances with life, I would say. You get to reside close to the CBD area and enjoy the cafe lifestyle and various amenities and facilities, all this without bypassing financial incentives because you have invested in affordable pockets which may witness capital growth over a period of time.
First home buyers had to come up with something unique
Naturally, it is turning out to be the mantra of many first home buyers today. I also feel that when the economy shifts on its belly and begins to show a different trend than what’s expected, various changes come to the fore. We are talking about FHBs, a fraternity which has historically been very active but had felt more or less elbowed out from the property race of late.
With offshore investments rising, they were expected to be under a constant hammer. Without reinventing themselves they had no chance of getting it right again. So, the move of turning into ‘rentvestors’, in my opinion, is a timely move.