The Property Couch 59 | Rentvesting: What Is It and Who Is It For?
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Apr 14, 2016 Delve into the intriguing world of rentvesting, a unique property strategy that's turning heads among Australian investors. Discover how personal goals influence property decisions and the cashflow benefits of renting while investing. Hear case studies showcasing the long-term wealth advantages of this approach. Unpack the emotional trade-offs of renting versus owning and explore how families can balance lifestyle upgrades with smart investments. Plus, insights on the implications of negative gearing changes that could affect homeowners and investors alike!
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Where Rentvesting Financially Wins
- Investment-grade properties typically sit in a price band where yields are stronger than very expensive owner-occupied homes.
- Bryce explains rentvesting stacks up when owner-occupied prices push you outside that investment-grade bandwidth.
Live Where You Want, Invest Elsewhere
- Do rent in the location you want and invest in higher-yield properties elsewhere to balance lifestyle and wealth building.
- Ben Kingsley advises to invest the savings rather than spending them on a larger home.
Sibling Swap To Avoid Landlord Risk
- Bryce suggested a sibling swap: buy each other's preferred suburb and become each other's tenants to avoid landlord risks.
- He framed it as a creative private solution to the fear of being kicked out by a landlord.