The growing trend of ‘Rentvesting’

Ever had property envy? Or tried keeping up with the Jones’? With ever increasing house prices comes the dwindling ‘Australian Dream’ of owning property.  In some areas, the concept of ever buying a house in the perfect location is so far out of the realm of possibility that many have resolved themselves to simply renting. 

But…it’s not all doom and gloom! Over the last few years there has been a growing trend of renting to retain your lifestyle preference and buying in more affordable suburbs.  This trend has been given the catch phrase of ‘Rentvesting’ – basically buying investment properties in areas of high growth, with lower entry prices that have solid rental returns whilst either renting or living at home themselves.

There are a number of articles and even research to show that ‘Rentvesting’ is one of the fastest growing property trends for the under 30’s demographic, however with the rising cost of property the trend is being adopted across the board.  There are many families, especially in our capital cities renting in their ideal location for proximity to schools, work and lifestyle. With the average house price for an inner-city houses on the increase, people are finding they are unable to realistically enter the market and are therefore looking to invest outside capital cities.

In a recent report published by CoreLogic, the following indicated the average median home value in each of our capital cities.

Source: CoreLogic Home Value Index, January 2018

Whether you are ‘pooling’ resources with friends or entering the market yourself, the golden rule of property investment – pure property investment – is to buy with your head not your heart.  If you are purchasing a property purely for the equity and capital growth do your research!  Look for areas of high growth and high rental returns.  The great thing is, that Kairos Property Group has taken the hard work out of it for you.  The properties we are currently listing are aimed specifically at the investment market or first home buyers and are ideal stepping stones to growing your property portfolio.  

Kairos can help you build your dream property portfolio.  Attaining and adding to the ‘Australian Dream’ is simple when you have the necessary tools and resources at your fingertips.

https://www.propertyobserver.com.au/terry-ryder/75744-regional-nsw-now-has-more-upwardly-mobile-markets-than-sydney.html

https://www.domain.com.au/news/more-for-less-the-appeal-of-the-hunter-region-20171113-gzkcpm/

Australian Property Growth Map – Core Logic

Disclaimer:  Any statements or comments made are general in nature and are neither given nor to be taken as financial advice.

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