Rentvesting

Torn between the freedom of renting and the stability of owning a home?

Some people may question why you would want to pay off a mortgage for someone else to live in your home, while you rent. Doesn’t it make more sense to just buy the home you want to live in? If only life was that simple.

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 airports 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, while continuing to rent the home where you live. If your investment property is earning you a profit, you could even use that income towards your home rental costs.

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.
• Possibility to generate a passive income, depending on the property’s rental 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.
• There are potential tax benefits on your investment property.
• This does not need to be a lifelong commitment – in a few years when your lifestyle and goals have changed, you could sell or move into the investment.

Other considerations

• One of the downsides of being a tenant is that there is less security in your primary residence. You may have to move if the owner wants to vacate or change tenants or your rent could also go up.
• You won’t be able to use the First Home Owners Grant.
• You might end up spending around the same if you were just renting or if you were living in a home you owned. The difference is, you can live where you want and get your foot in the property market.
• If you end up selling your investment property, you’ll need to pay tax on any capital gains. Whereas, you don’t have to pay CGT on most owner-occupied properties. See the ATO website for more.

Experience a new way to build your home

We prioritise your best interests (not a big corporation’s). Unlike a traditional salesperson with a one-builder focus, we are unbiased advocates who help you find the best builder, block and home design to suit your needs.

Your property partner for life

We want to build a mutually rewarding relationship based on understanding and knowledge. So that, in the future, when you’re ready for your next home, you give us a call. And you’re happy to introduce us to your family and friends.

Backed by experience

As experts in the property and building industry, we stay ahead of the latest regulations, trends, and materials.

It means we know what hidden costs to look out for; what to include and what to leave out; and who to trust with your new home.

Transparency you want to see

We will continue to rise to the challenge to do the right thing. This means being transparent, offering clear pricing, reliable timeframes, and guidance in the home-building process, all at no extra cost to you.

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.