“How are our kids ever going to afford to buy property?”. This question is asked every time we sell a property for a new benchmark.
One strategy for many first home buyers is rentvesting. It’s a strategy that sees them buy a property where they can afford to buy, usually in a location a lot further away from where they want to live. Then, rather than live in their new property, they are renting it out to a tenant and renting themselves in their preferred suburb. This allows them to share rent and costs, while enjoying the benefits of a central location.
It’s being driven by a rising property market that is proving the sooner a buyer gets into the property market, the sooner they can benefit from the capital growth that has been so consistent over the last few years.
One of our property managers couldn’t afford to buy in Brisbane, so they bought in their home town of Tamworth. They paid $270,000 in 2018 and today it’s worth about $450,000. That’s nearly a $200,000 uplift and has now given them the equity to buy in Brisbane.
The tip to rentvesting is to know where you are buying. The further you drive from the city, usually the more affordable the property. Do your research, drive the area and talk to friends that live there. Plan to buy and then never sell.
That first property purchase is the hardest. You need to save up your deposit, against a rising market, while you’re navigating the cost of living.
Originally posted on January 11, 2024 by Maxine Brady As spring approaches, it’s the perfect time to infuse your home with the hottest home decor trends for 2024. In this blog post I will explore the top 6 home decor trends for spring, and provide styling tips to help you … Read more