Given there are thousands of housing markets across the country, it’s unlikely that the area you want to buy in offers the best growth potential. By renting in that area, you can live there and invest in a location that is likely to see faster growth. Learn how to find a fast-growing hotspot by reading our recent blog.
Boosts borrowing capacity
If you follow the traditional path of maxing out your borrowing to buy a PPOR, then it is very difficult to invest. Those people who have built large property portfolios have often done it by not maxing out their capacity early on and that has allowed them to continue to borrow. Rentvesting allows you to keep on moving forward and building your portfolio.
Rent in better locations
Typically, it is far cheaper to rent in a given location than it is to buy there when you factor in mortgage payments and that’s not including all the other costs such as council rates and maintenance. You can often rent in better areas and in superior properties compared to what you might be able to buy.
The Wall