Bathurst Blog

Rentvesting

'Rentvesting' is a property ownership method whereby renters buy an investment property in an area they can afford and rent a property where they want to live.

It’s fast becoming a tax beneficial way to overcome FOMO (fear of missing out) amid the spectre of record house prices.

This is confirmed by Plan Your Future founder Helen Nan, who says rentvesting is about gaining access to the property market if buyers cannot initially afford to purchase their dream home.

Ms Nan adds that the concept helps investors build a long-term wealth creation plan earlier than expected. This is dependent on seizing the right opportunity when it presents itself.

“The biggest advantage can be entering the property market earlier” she says.

“If you want to arrive at your financial destination earlier, it’s better to start earlier.”

How it Works

The rentvesting strategy works especially well for young people who might still be living with their parents while paying minimal rent.

This essentially means that they can pay off the mortgage on their investment property faster, however that doesn’t mean it cannot work for other people who may be living on their own/out of home.

Rentvesting means you can live in an area that suits your lifestyle, even if you can’t afford your own property in that postcode.

“It allows you the freedom to live where you want, not just somewhere you can afford to buy,” Ms Nan says.

As such, established properties with land are highly valued for their growth potential and lifestyle/tenancy appeal.