Rentvesting is an option for homeowners to enter into the market, where they rent in a location that they like and invest their money elsewhere into a more affordable property.
The idea is that you rent the home that works for your situation now, whether that’s proximity to work or friends and invest your leftover money into an investment property in a suburb (typical a cheaper, growth suburb), generating rental income to help pay off your mortgage and then later sold for capital gains.
This helps homeowners achieve their dream of owning a home whilst living where they want and also building a portfolio which will help you into the future.
Some people may view “rent money as dead money” but in this case it allows you to use it as an investment strategy without compromising on living where you want to.
Rentvesting has been touted as an option for first home buyers to climb the property ladder without giving up the lifestyle or location they want or entering into a financial situation they might not yet be ready for – perfect for first home buyers who are still looking to save a larger deposit.