WHERE I WOULD INVEST $10k
Depending on the condition of the property I buy in my rentvesting strategy, there are two options I’d consider.
First, if the property was in a sound condition, whereby it may not look brand new but rather is clean and tidy for any tenant to enjoy, then the $10,000 would go straight into the offset account to reduce the interest I was paying on the loan. The benefit of this strategy is that the interest saving is technically tax free, as you are not generating income, which would be taxable with other types of investing. In the case of an offset account you are saving interest, and you don’t get taxed on saving on an expense such as interest.
If, however, the property was in need of a tidy-up, you can get the biggest bang for your buck by painting it. This is by far the best way to transform any property. If it’s a freestanding property $10,000 would more than likely get both the full interior and exterior painted, giving rise to improved income in the form of higher rent and potentially an uplift in the valuation.