Is now the time to build your prop­erty port­fo­lio?

Shepparton News - SN Local Real Estate - - NEWS - In­for­ma­tion sourced from:

’ Rentvest­ing’ – the lat­est real es­tate buzz­word – is the strat­egy of buy­ing a prop­erty in a more af­ford­able area as an in­vest­ment, while con­tin­u­ing to rent in the more ex­pen­sive area you want to live in.

Billed as a so­lu­tion to the af­ford­abil­ity cri­sis, it’s a great op­tion for those keen to get on to the prop­erty lad­der, but who can­not af­ford to buy a home in the area they want to live in.

‘Rentvest­ing’ has be­come the new­est way to se­cure a slice of the ‘great Aus­tralian dream’.

The ‘rentvest­ing’ strat­egy

By buy­ing a prop­erty to rent out in a cheaper area, home­own­ers can en­joy the best of both worlds – the life­style they want in the lo­ca­tion they choose, while also be­gin­ning to build their wealth for the fu­ture.

Re­gional ar­eas have been pop­u­lar with ‘rentvestors’, be­cause they of­fer great value for money due to the com­par­a­tively lower pur­chase prices of prop­erty, rel­a­tive to rents. Data shows that land­lords who own prop­er­ties in re­gional ar­eas can also ex­pect a greater re­turn on their in­vest­ment than those with prop­er­ties in the cap­i­tal cities.

Where to ‘rentvest’?

When con­sid­er­ing where to pur­chase a ‘rentvest­ing’ prop­erty, be sure to check rental va­cancy rates for the sub­urb, to min­imise the like­li­hood of the prop­erty be­ing un­oc­cu­pied (and not earn­ing any rent) for too long.

You should also be­come fa­mil­iar with the tar­get mar­ket, to en­sure the prop­erty will be at­trac­tive to prospec­tive ten­ants – for ex­am­ple, near pub­lic trans­port to lure stu­dents, or with a safe and spa­cious gar­den if fam­i­lies are the key de­mo­graphic.

If you play your cards right, you could have one foot on the prop­erty lad­der and the other in your prime real es­tate rented abode and be on your way to build­ing your own real es­tate em­pire.

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