July 16, 2022

How Rent Vesting Helping you invest in the property market

How Rent Vesting Helping you invest in the property market

Many Australians are having a hard time getting into the property market and securing the purchase of their ideal home. With property prices at an all time high, and a competitive buyers market it feels like a far off dream for many. Rent-vesting helps buyers to shift their perspective of how best to spend their money and get into the property market.


As the name suggests “rent-vesting” allows you to be a property investor, and renter at the same time. It allows you to live in the preferred suburb of your choice in a rental property, while purchasing your own investment property and having the tenants pay your mortgage.


Sara and Mark, are in their mid-thirties, live in Sydney, and have a babyon the way. Their ideal home was a 3-4 bedroom house in Sydney's North West, close enough to work, and family. After going to auction,after auction and being constantly outbid, their desperate desire to secure themselves in the property market took their search across to Brisbane. “I know how important it is to secure our financial future through getting into the property market and looking furthera field seemed like the optimal answer. We also did not have the budget to buy in the current booming Sydney market.


Sara and Mark are now the proud owners of a 4 bedroom home in Baldivis Perth. They bought it for $472,728 and rented it out for $500 per week. They are currently renting a 4 bedroom home in the Ponds in Sydney North West. Their property is positively geared by $137 aweek. Overall, this set-up allows them to earn a profit from their investment property, live in their preferred suburb as renters, and build their financial wealth by having finally invested in the property market.  “It’s really a no-brainer,” says Sara “weare now excited about our future; the property burden has been lifted.”


Rent-vesting seems the ideal answer to the current conundrum a lot of Australians are finding themselves in: ‘how am I ever going to afford to buy a home I want in the Australian market?’ Millennials don’t want to sacrifice their lifestyle, and don’t often implement strategies to save for a deposit. Some older Australians through life circumstances or financial hardship find themselves back at square one with no investments to support their financial future. Growing families with young children are outgrowing their current homes and cannot afford a property with an extra bed room, study or garden.


People can get into the investment market by buying in outlying growth suburbs usually within 30 km of most cities in Australia. If you are smart with the price you buy for, and rent you will find yourself with a monthly cashflow, as well as a property that will grow invalue.

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