With interest rates at their current levels, most mortgage holders are paying over 6% approx. interest, making it unsustainable for average income earners to purchase in locations such as Melbourne’s inner ring.
In most cases for our clients, it is significantly more affordable to rent in the location of their choice rather than buy. The surplus funds they have available can be used for alternative regional investment opportunities.
What is Rentvesting?
Rentvesting involves renting a home in your preferred location while owning an investment property in a more affordable area. This strategy can be more affordable and financially rewarding.
$1.2m Inner Melbourne Home | $600k Regional Investment Property |
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Cost Analysis:
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Why Rentvesting?
Renting in a desirable location can be significantly cheaper than buying. The surplus funds can be invested in regional properties, potentially yielding higher returns.
Pros and Cons
Both methods have their benefits and drawbacks. Your choice will depend on your personal circumstances and financial goals.
Get in Touch
Contact us today for a free consultation to discuss your individual goals and discover promising investment locations. As expert buyers’ agents, we will help you achieve your property goals.
To get in touch you can fill in the form below or:
Email: lachlan@oconnellba.com
Phone: 0428 208 180
*This is a general example only; all individuals must obtain independent financial advice.
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