What is Rentvesting and How Does it Work?
Have you ever heard of the term ‘rentvesting’ before? If you have, you’ll probably already understand why it’s so appealing – but if not, please allow us to explain it to you.
Rentvesting, or renting and investing, is an activity that many home owners choose to pursue.
You’ll basically be purchasing a new home with the help of a bank mortgage and then making that home available for rent to people that are keen for accommodation.
The rental market is huge in Melbourne, so are you missing out?
With more tenants than there are available properties, the price of rentals in the region are higher than ever before.
Rentvesting can be a fantastic way to enjoy an income whilst having your mortgage covered – and still allowing you a little extra to set aside to cover your own accommodation costs as well.
How Does It Work?
First, you’ll need a mortgage and that’s where we can help. Making sure that you keep your costs as low as possible when it comes to repayments should be a top priority – and that’s why we’ll compare rates of interest and evaluate different deals from varying banks on your behalf.
Once you’re ready to proceed with your loan, we’ll help you with your submission and if approved, you’ll be in a position to buy a new home.
When you own it, you’ll be able to rent it out to your own tenants and charge them a set fee each month. As rental prices are high in the city right now, you could find yourself making more than enough to cover the mortgage AND even pay your own rent for the property that you live in while your actual home is occupied by your tenants.
It really is win-win all round. You’ll be helping the housing market, whilst receiving a very comfortable profit for your efforts. And making sure that you enjoy the lowest rates on your repayments is our top priority – so why not give us a call to see how we could help?