The benefits of rentvesting
As the number of Australian investors wanting to enter the property market or continue to grow their portfolio of investment properties continues to grow, it is interesting to look at the benefits and motives of designing a lifestyle for rent investing. Rent investment as a real estate investor can be an excellent way for you to be on the property market when renting the home you live in. Following we look at a few of the factors that contributed to Australia's rent investing growth.
Greater options in lifestyle
Rentvestors might live more close to the city or in attractive coastal areas with more opportunities for employment where renting is more economical than being a mortgage paying owner-occupier.
Generational behaviour changes
When young Australians are looking for higher quality property in sought-after areas, renting in these areas offers younger investors instant access to luxury and lifestyle as soon as they move out of the family home.
Rentvesting keeps Australians flexible with their living arrangements, allowing them to easily pursue new prospects as they emerge without the trouble of selling their main place of residence. You can notify your property manager when you live in a rental property and pursue that dream job in a new city or move abroad while knowing that you are still investing in your investment property for the future.
Tax breaks and the investment property costs
Renters can claim deductions and costs including property management fees, loan interest, council rates, insurance, repairs and maintenance, and depreciation.
With these factors into consideration, together with the potential for net positive cash flow from investment properties, it's easy to see why people buy a property in an area with the potential for future capital growth while enjoying the amenity and flexibility to rent in an area of their choosing.
It's also important to consider possible downsides including capital gains tax consequences when you decide to sell the investment property before pursuing a rent investing lifestyle. As a renter, if your landlord decides to sell the house, you may not love having to move, plus potential repairs and enhancements are constrained by your landlord's appetite for improvements.
If you are considering rent investing, you need to consider whether these downsides outweigh the opportunity that comes with building a portfolio of investments when living in a desirable location.
For further information about real estate in this area, contact No Bull Real Estate, your most reliable and friendly real estate agents in Newcastle & Lake Macquarie. Buying, selling, leasing for residential, commercial, industrial property, contact your local expert to buy, sell or lease today on 49552624 or https://www.nobullrealestate.com.au