Rentvesting is when you purchase a property as an investment and you rent it out to a tenant rather than live in it yourself. There are some great advantages and some risks involved with this type of investing. According to David F. Smith what it boils down is to is whether you chose the correct property from the start.
In this time of moderate interest rates, some people are considering investing in rental property. If the biggest chunk of the monthly cost of ownership – the mortgage payment – can be frozen for 30 years while rents gradually increase, the resale value of the property escalates and all the while you enjoy the income tax benefits and then you have a win-win on your hands.
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Factors you will need to research extensively should include your tax implications, which type of property, in what area and what will make this property desirable in the rental market.
For many, rent-vesting is the only way they can afford to own a property in Australia.
Axon Property Group can assist you whether you are first-time property investor looking at rentvesting or if you want to further expand your portfolio. Find out more here: https://axonproperty.com.au/services/
Read the original source article here: Investopedia.com