[Rent + (In)vesting] For The Savvy First Home Buyers & Investors
‘Rentvesting’ – it’s a term that refers to renting where you want to live and investing where you can afford to.
It’s a savvy concept for either investors building a growth property portfolio faster or helping buyers struggling with affordability to break into the property market sooner, where they can produce immediate income and in time build wealth to buy their own home or reinvest.
The strategy isn’t for everyone, depends on many factors your lifestyle, budget, and end goal plans to achieve.
It’s not about the total number of properties you own, it’s the total value of the portfolio, the quality of properties, and the specific strategy in place for you that is key!
“When you invest, you are buying that day you don’t have to work!”
Buying A Home For The First Time?
I’ve had the pleasure of assisting first-home buyers particularly of late. It’s not impossible, I respect it’s harder with interest rate rises. However, often it’s being savvier with tighter budgets, thinking outside the box, finding better solutions, educating with support, and instilling confidence in our buyers in navigating the fickleness and first home buyers’ entry point to buying their first property.
Here Are Some Tips For You
- Save for the initial deposit
- Explore mortgage options
- Don’t skip the pre-approval
- Know your upfront costs and ongoing costs
- Check and strengthen your credit rating
- Get rid of any credit cards or after pay
- Research property locations in your budget
Buyer Tip For Rising Interest Rates
It’s always a good idea once an interest rate rise has occurred to proactively touch base with your bank manager or finance broker to confirm whether your existing pre-approval amount has or hasn’t been affected.
It also brings confidence and reassurance that moving forward in your own financial management you are still buyer-shopping within your pre-approved budget to have no disappointments arise later when the contract is exchanged.
