Rentvesting is a strategy where you invest in property while renting a home to live in. The idea is to take advantage of the potential capital growth and rental income of an investment property, while also being able to live in an area or type of home that you might not be able to afford to buy.
Here are the steps you can take to rentvest in Australia:
- Set your goals: Before you start looking for a property, it's important to have a clear idea of what you want to achieve with your investment. Are you looking for long-term capital growth, or are you more interested in the rental income? How much are you willing to spend on the property, and what type of property are you looking for?
- Research the market: Look at different areas and types of properties to get an idea of what's available and what's likely to suit your goals. Keep an eye on property prices, rental yields, and recent sales data to help you make an informed decision.
- Get pre-approved for a mortgage: Before you start looking at properties, it's a good idea to get pre-approved for a mortgage so you know how much you can afford to spend.
- Hire a buyer's agent or do your own research: Researching the market and identifying the right property can be time-consuming, so you may want to consider hiring a buyer's agent to help you find a suitable property. If you'd prefer to do it yourself, make sure to take note of your budget and try to compare the neighborhood and property value.
- Arrange for property inspections and due diligence: Once you've found a property you're interested in, arrange for inspections to be carried out to ensure that the property is in good condition and doesn't have any hidden problems.
- Close the deal: Once you've found a property that you're happy with and have carried out all the necessary inspections and due diligence, it's time to finalize the purchase. Make sure you have a good understanding of the closing costs and tax implication before signing the contract.
- Manage the property: Once you've bought the property, it's important to manage it effectively to ensure that it remains in good condition and generates a steady rental income. This could include arranging for regular inspections and maintenance, finding good tenants, and keeping on top of any necessary repairs or upgrades.
As always, it's important to consult with professionals like financial advisors, mortgage brokers, and property management companies for further advice on property investment.
Until next time and thanks for yours!