At this time when the house rates skyrocketed in the year 2021, owning a property can be difficult. Particularly, when you a looking for a house in cities like Melbourne, Sydney, or Canberra where the median house costs you above $1 million.

Yet, if you still want to fulfill your dream of owning a property in these cities then revntvesting can be a good option for the same.

The term Rentvesting is a home-owning strategy in which you rent where you want to live and invest in a property where you can afford. There are a number of advantages of owning a property using this strategy and you cloud even end up with better choices in the long run.

Invest In A Property Now

With house prices continually rising, if you’re stuck trying to save up a deposit you can find yourself in a position where price increases outpace your ability to save. And you may not be able to achieve your dream of owning a property. 

If you don’t want to lose pace with the broader market, buying an investment property where you can afford to (based on your current deposit size) might be an excellent option.

That way you’ll be in the market and getting the benefit from any capital growth. 

Stay rental where you want

If you’re a first home buyer, you’re normally not able to buy your dream home with your first property purchase.

Instead, many first home buyers, like you move to areas that they can afford, which might mean living somewhere they don’t want to.

By renting and investing elsewhere, you get the best of both worlds as it’s normally easier to rent in a specific location where you want to live than to buy there.

Buy more properties

For many home buyers, if you max out your borrowing capacity on your own home, you aren’t able to buy any other properties. This will in turn reduce your chance to buy another property.

But investing in a different location that might have higher yields, could allow you to build a portfolio of properties over time.

By doing so, you will also be able to identify areas that have the potential to grow in value faster, rather than the location that you’re wanting to buy into.