Miji Michael March 18, 2021
Owning a home is the Great Australian Dream. But with Marsden Park Elara having an average property resell value of $1.6M [2019] many may think this dream is out of reach for them. Not really! There is another way to help you achieve the dream in Marsden Park Elara - Rentvesting!
What is Rentvesting
Instead of trying to buy that property you want in Marsden Park Elara that is outside your budget, you can rent in an area you like and buy a more affordable investment property some place else. This way you get to pay off the investment property while you rent.
The average rent in Marsden Park Elara [2019] is $400 per week, while the 2016 average monthly household mortgage payment was $2,608. So renting has been a more affordable option for many. Rentvesting can help change this.
CoreLogic reported that purchasing outside of Sydney as an investor has been a worthwhile option for many buyers. This can be a logical stepping stone to owning that home you want in Marsden Park Elara.
So if you don’t yet have the funds to buy that property in Marsden Park Elara, then you might consider the rentvesting approach.
How to Rentvest
Find an ideal home to rent, temporarily, while you buy a more affordable property in another suburb, city or region.
You then rent the property to cover your own payments, and later sell it for a profit - capital gain.
Rentvesting helps you to build your property portfolio for that home you want in Marsden Park Elara. It also makes renting an effective investment strategy.
But don’t forget to do your research first! You don’t want to choose an investment property in a location that’s unlikely to make you a profit, or find yourself unable to make the mortgage repayments.
Rentvesting can work well if you do it right. Just make sure that you first look at all the facts. Consult experts and your real estate agent so that you achieve the best outcome for you and your family.
Remember, do your research and seek advice from experts to help you identify all the pros and cons, costs involved and tax implications.
Rentvesting all depends on your budget, life stage and that lifestyle you want.