During the weekend I met a member of our community, who has been in Australia for two decades. We started talking and he mentioned he is currently renting, and how he regrets not buying a property when he had the opportunity. Even though he has a secure government job with a good income, it has become impossible for him to buy a house in the area now. That little conversation got me into thinking, how many other people must be suffering in the same situation. Looks like many people are not aware of this well-known solution called rentvesting.
Why rent vesting is popular now?
Since house prices have skyrocketed not many people can afford to buy houses in most city suburbs. By the time you come up with the deposit, the house prices have gone up even further making it impossible to catch up.
Many young people these days don’t want to compromise their lifestyle just to get the “First Home Owner Grant” because of the long commutes and the uncertainty in the building industry. So, they opt to rent where they like to live and invest in where they can afford to buy. While they enjoy their lifestyle someone else is paying for their mortgage allowing them to reap the rewards of capital growth in the future. What a smart concept. Under current eligibility rentvestors still can apply for “First Home Owner Grant” if they decided to build their own home.
Of course, to buy a property you need to have a deposit and money to cover additional expenses like stamp duty, however, it’s more feasible to gather a smaller deposit than to accumulate a substantial amount that may be unattainable.
So, if you are in this situation, please send me a message to discuss how I can help you to get out of this never-ending battle. Subsequently talk to a mortgage broker regarding your borrowing capacity to kick start the process. If you are a mortgage broker willing to assist with determining the borrowing capacity, feel free to comment below.
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