If the idea of owning a property in your current location seems overwhelming, you can always invest in a place that fits your pocket. Rentvesting is the brilliant opportunity that allows you to live wherever you want and invest in a house which you can afford. So it gives you the advantage of living in a city like Brisbane and putting your money in its upcoming suburbs like Pimpama and Jimboomba. It is a better way to utilise the cash in hand than waiting for the prices to fall and losing out on precious time. The concept is best suited to young couples who plan to save for the future and cannot afford a buy a house in a metropolitan city. Here are the advantages of rentvesting which helps to accomplish financial and lifestyle goals.
Pay for Mortgage by Renting Your PropertyWith rentvesting, you have the freedom to live in an urban zone like Brisbane on rent and buy a property in the suburban area whose prices have not skyrocketed yet. You do not have to be worried about the burden of paying the mortgage and the rent simultaneously as you can comfortably pay off the instalments of the mortgage from the rent received from your property. Many suburban properties in Queensland will outperform cities, so there is no lack of choice for investment.
Create An Asset From Your PropertyThe property you own will keep paying dividends as the rental prices will keep increasing with the growing population and the overall development of the region. You can keep holding on to the house untill you get a considerable return on investment or keep it as an asset and use the rental money for further investments and expansion of your portfolio. While choosing the property for rentvestment you must keep in mind the mortgage repayment and the average rental prices of similar properties. It will help you to understand the cash flow and finance management more accurately to make a wise decision.
Living On Rent Saves MoneyWhen you are living on rent in Brisbane, you have the freedom to move whenever you want without worrying about paying stamp duties and other house taxes. House owners usually have to go through such hassles when they sell or buy a new home. Additionally, you are permitted to tax-deductible expenses on your property in Brisbane which allows you to claim interest payments. Plus, you get benefits like easy enrolment in schools for your children when you are renting a place in one of the preferred zones.
EndnoteInvesting in a high potential property at the developmental stage is a sound decision which should be taken by all young professionals. It sets the ball rolling for a secure future and restricts them from squandering money on frivolous pursuits.