by Marshall Cobb - Head of New Projects
Given the high cost of real estate in Australia, house-hunters are finding new ways of getting a foothold on the property ladder. According to State Custodian Home Loans, 74% of people think that rentvesting is a good strategy. Rentvesting is where a person/couple continues to rent themselves, while at the same time buying an investment property, and using the rent and tax refunds to help pay down the mortgage. Respondents were in favour of rentvesting, because it allowed people to maintain their current lifestyle, live where they want, and build equity - instead of living in a mortgaged house in an area they’re not keen on.
This strategy makes good sense to us, and seems to be a very cash flow effective way to enter the property market. Read more...
We like to read stories about successful investors and better understand where they went right, and more importantly - where they went wrong! We just read an article about an investor with a simple 2 criteria strategy. He looks for...
1. Cashflow, as the rental income pays a big portion of the mortgage, and,
2. Location, which is any suburb close to a CBD.
Maybe one of our properties would be suitable for your rentvesting or investment strategy. If so, don't hesitate to contact us.