Struggling to Buy a Home? Rentvesting Could Be Your Best Move
With property prices soaring well beyond household incomes, saving for a deposit has become a major hurdle – especially for Sydneysiders. On the Northern Beaches, where the median house price nears $3 million, homeownership can feel like an impossible dream.
Existing homeowners have the advantage of equity growth, but for first-time buyers, the barriers to entry are daunting. So, how can you break into the property market without sacrificing your lifestyle?
The answer: Rentvesting.
What is Rentvesting?
Rentvesting lets you live where you love while investing where it pays. Instead of stretching your budget to buy in an overpriced market, you rent in your ideal location while purchasing property in more affordable, high-growth areas. This strategy is becoming increasingly popular as Sydney prices continue to climb.
Top 5 Reasons to Rentvest
1 Get Into the Property Market Sooner
Rather than waiting years to save a massive deposit, rentvesting allows you to buy in more affordable markets that are poised for high capital growth. This gets you on the property ladder faster and puts you in a stronger financial position for future investments.
2 Maintain Your Dream Lifestyle
Love the beach or the city buzz? Rentvesting allows you to live in your ideal location without committing to a multimillion-dollar mortgage. Plus, you have the flexibility to upgrade or downsize without the costs of stamp duty or legal fees.
3 Build Long-Term Wealth
By investing in high-growth areas, you can build an income-generating property portfolio that sets you up for financial security. Over time, your investments can fund your dream home – or even an early retirement.
4 Benefit from Tax Advantages
Unlike an owner-occupied home, an investment property can come with tax benefits. You may be able to claim depreciation on the building, fixtures, and fittings, as well as deduct interest on your loan – helping you grow your portfolio faster.
5 Reduce Your Living Costs
As a renter, you avoid costs like maintenance, council rates, and strata fees – expenses that your landlord covers. And as a rentvesting landlord yourself, many of these costs become tax-deductible.
Real Rentvesting Success Stories
Consider these recent examples of rentvesting in action. With Sydney’s average rental yield at 2.7% for houses and 4.3% for units, these interstate investments are delivering significantly stronger returns:
Sunshine Coast, QLD
- Property: 3 bed/2 bath/2 car townhouse
- Purchased: September 2020 ($765,000)
- Capital Growth: 66% in 4 years ($510,000 gain)
- Rental Yield: 6%
Adelaide, SA
- Property: 2 bed/2 bath/1 car townhouse
- Purchased: September 2021 ($379,000)
- Capital Growth: 58% in 3 years ($221,000 gain)
- Rental Yield: 7%
Imagine if you had made a move like this a few years ago – where would your financial future be today?
Is Rentvesting Right for You?
Rentvesting is a smart and flexible strategy that works for everyone. Whether you’re a first-time buyer, a growing family, or a seasoned investor, rentvesting allows you to tailor your property decisions to suit your financial goals and lifestyle. It provides the perfect balance between wealth creation and personal freedom, ensuring that you can live where you love while making your money work for you.
Take the First Step Toward Financial Freedom
If you’re serious about building wealth while maintaining your lifestyle, let’s talk. Our expert team can help you identify high-growth investment opportunities and craft a rentvesting strategy tailored to your goals.
Client Testimonial
My husband and I were referred to inSynergy by our accountant, and WOW, what a game- changer! In just a few months, they have completely transformed our financial future and set us up for a secure retirement… Their dedication and around-the-clock assistance made all the difference. We highly recommend inSynergy and their incredible team to anyone looking for top-tier investment guidance. Couple, Sydney, NSW
Visit www.inSynergy.net.au to request a complementary consultation with one of our experienced Property Wealth Planners.
p. 1300 425 595 e. hello@insynergy.net.au Level 1, Suite 8, 22 Darley Road, Manly www.insynergy.net.au
Important Note and Warning: This information must not be taken as financial advice. This is general information only and you should seek out relevant and independent professional advice before making a financial decision.
