Who said you had to own the home you live in?

Some people may question why you would want to pay off someone else’s mortgage, while you rent out the home you own. But there are many lifestyle and financial factors that makes this a smart strategy.

Rentvesting offers the flexibility to suit your lifestyle and goals.

You may prefer to live in the inner suburbs of Perth where you can walk home from night out, or be right on the airport’s doorstep while you work FIFO but a home in this area isn’t in your price range. Perhaps, you are still figuring out where you want to put down your roots and don’t need a 4×2 family home just yet. You know you want to capatilise on the booming Perth real estate market, and set yourself up for your dream home in the future or even start your property portfolio to build wealth.

Rentvesting can give you the best of both worlds. You can buy a property and rent it out to cover some or all of your mortgage (with tax reduction benefits!), while continuing to rent the home where you live.

Benefits of rentvesting

• In contrast to when you buy or build a home to live in, you can be purely strategic about the location and inclusions of your investment.
• The costs of owning the house, including interest paid, maintenance and depreciation can help reduce your income tax liability.
• Possibility to generate a passive income.
• You can build equity in your investment that you could use to build on your property portfolio or to help you upgrade to your dream home.
• Get into the booming WA real estate market by locking in a property at today’s prices.
• Current rental vacancy rates are at a historic low so you can be confident you’ll find a tenant.
• Renting allows for greater flexibility of where you call home – allowing you to move around to find the right locale for you, or easily upgrading your pad as your wealth grows.
• You don’t need to rely on your local property market growth to get ahead.

Information shared here is general in nature and does not take into consideration your individual circumstances and finances. Speaking to a professional to ascertain what you can afford, the tax implications and potential rental income is advised.