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Best Tips For Rentvesting In 2023

 

Rentvesting, an increasingly popular method to enter the property market, has captured the interest of many individuals, especially millennials and first home buyers. By renting a desirable property in your desired area while simultaneously purchasing an investment property in a more cost-effective location, you can expand your property portfolio while enjoying the lifestyle you desire.

However, successful rentvesting necessitates meticulous planning and thoughtful deliberation. To ensure a smooth rentvesting journey, we have compiled a selection of invaluable tips.

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Think Further


When deciding on your options, it is beneficial to expand your location preferences and think about areas that you may not have considered before. A huge benefit with rentvesting is being able to take the emotion out of buying a property and focus on what’s best for your investment goals.

When researching different local property markets, focus on identifying places that can open up more opportunities for your investment and your finances. Whether it’s finding a property in the metro area, towards regional suburbs or even interstate, thinking outside the box and evaluating all your choices will ensure you’re on the right path.

Look For Strong Demand & Low Supply


To build your capital growth, strategically seeking areas with strong rental demand and low supply of properties is key. The low vacancy rate would lead to your property being rented out very quickly and providing really strong rental returns.

It is also crucial to buy into a location that shows reliable signs of long-term growth. Consider the property’s proximity to schools, transport, shopping centres, amenities, infrastructure and upcoming projects as this can affect the local demand. 

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Stick To Budgeting


It comes to no surprise that property investing requires a lot of patience and discipline before reaching the desired capital growth. Budgeting is crucial when rentvesting as you’ll need to factor the costs of both renting and owning a property.

By managing your funds, you’ll be able to meet mortgage payments, property management fees, maintenance costs, insurance fees and also have money set aside in case of any unforeseen expenses. As a property owner, you will have to be prepared for unexpected risks that may arise. This could be urgent repairs needing to be done or having to deal with a long period of vacancies.

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Have A Strong Team Of Professionals


By seeking the advice of property experts, you can ensure you are making the best decision with your investment and ticking all the right boxes. They will be able to direct you away from costly mistakes and provide valuable tools and insights into the property market. 

Meeting with a financial planner and a mortgage broker can assist in properly assessing your borrowing capacity and instructing you through the purchasing process. Tax advisors can also help you maximise your tax deductions and minimise your tax liability. To add, you may opt to hire a property manager that can navigate finding suitable tenants, collecting rent and handling maintenance issues. 


Here’s where iBuyNew can help - we have a team of off the plan property experts who will do the research for you and advocate on your behalf on your property buying journey.

If you’re wanting to learn more about what rentvesting is all about or are looking to purchase an off the plan property, get in touch with us at iBuyNew.
Speak to our team of experts on 1300 123 463 or book a call back to find out how we can help.

Published on 7th of June 2023 by Davina Deluao
Davina Deluao
Davina Deluao

Davina graduated from Swinburne University in 2018 with a Bachelor of Arts, majoring in Journalism. Through travelling and studying abroad in NYC and LA, her interests in property and design grew and became a strong pursuit. Davina has been writing for iBuildNew Group since 2019.

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