While "rentvesting" may not suit everyone's lifestyle, there are situations where it can help investors seeking long-term financial independence.
"It's more common for people in their twenties and thirties, but I've also helped couples in their fifties with this," shares Simon Pressley, real estate market researcher and director of Propertyology.
"When done right, the locations in which" rentvestors "buy property are chosen for the potential for short-term capital growth and are not negatively influenced by biases such as location. person's residence. "
In fact, Pressley had met a couple in their fifties who wanted to embark on a better path to retirement. But although the couple had never made any investments before, they held a favorable portion of the equity in the family home.
"They recognized that a family home without debt still doesn't generate income in retirement," Pressley says. “We looked at the pros and cons of a few strategies with them and they chose to sell their house and live in a trendy, rented apartment in a more central location. "
Profits from the sale of the couple's family home were divided and used to secure three investment properties in three completely different locations across the country.
During this time, the couple were able to live closer to town and to the beach; soak up the idyllic lifestyle they never dreamed of getting before.
"The combined growth in capital value of their three investments was greater than the growth in what their former family home would have produced, the impact on their household budget was smaller than when they were in their household budget. they had the mortgage, and the beautiful apartment that they were renting improved their lifestyle, "Pressley explains of the financial difference that the" side-thinking "approach to" rental investing "made for the couple.
Top Suburbs:
leumeah
,
berala
,
rooted hill
,
nunda
,
bligh park
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