Rentvesting | The Perfect Way to Get onto the Property Ladder

<p>In today's episode, we are talking about a property investment strategy called rentvesting. We will cover what rentvesting is, what the benefits are, followed by the downsides of rentvesting. We will also cover who rentvesting might be most suited for. Here is a brief overview of the benefits of rentvesting:&nbsp;</p> <p>Live Where You Want - You have the flexibility to live where you want. You are not bound by the property that you purchased in a certain area. So you could live close to work, close to school, or to family. This is all while still investing property elsewhere, where it makes more sense to invest in.&nbsp;&nbsp;</p> <p>Low Maintenance Costs - The owner of the property is liable for maintaining the place you are renting. So you will save a lot on not having to worry about that, as usually, you would be living in an area where property prices are higher.&nbsp;&nbsp;</p> <p>Tax Benefits - You can claim a variety of different expenses when you have an investment property like interest expense, depreciation on building and fittings, costs of renting and maintaining the property, and much more. This can be used to help offset your income earnt, hence you will generally pay less tax.&nbsp;&nbsp;</p> <p>Rental Income - The rent that you get from the tenants living in your investment property, can be used to pay down the mortgage and cover most if not all expenses depending on if you purchase a cash flow positive or negative property. If it is a positive cash flow property, you can use the surplus cash to pay some of the living expenses too.&nbsp;&nbsp;</p> <p>Capital Gain - The investment property, in general, will appreciate in value every year. Which you can then leverage by using the surplus equity in the home to purchase another property or you could sell the property and pocket the difference between the sale price and the cost price.&nbsp;&nbsp;</p> <p>Here are the downsides of rentvesting:&nbsp;&nbsp;</p> <p>First Home Owner Grant - You won't be eligible to get a first home owner's grant which c