The Benefits of Rentvesting While Living in a Sharehouse
If the surge in property prices in Australia can tell you one thing, it’s that the housing supply has failed to keep up with demand.
Accordingly, buying a house to live in costs a lot, especially in urban areas. For young professionals, coming up with the deposit alone can be an inhibitor.
Could rentvesting while living in a sharehouse be the solution? To answer that, let’s dissect the benefits.
Finding Good Housing Opportunities
Rentvesting enables you to live in your dream home (like a property close to the CBD) as you resort to renting rather than buying. However, Cameron Kusher, PropTrack Director of Economic Research, states that rent is up by 19% across Australia.
With that in mind, it may take more than rentvesting for you to afford rent in a good neighbourhood. That’s where shared housing is beneficial.
Sharehouses are especially common among professional singles and couples
It seems that many Australians have taken this route, with 68,000 new users signing up to Flatmates.com.au in January, to combat the rising prices.
Entering the Property Market Faster
Do you live with the pressing fear that you’ll be priced out of the property market at any moment? Rentvesting while living in a sharehouse helps you beat the increase in home prices.
To illustrate, you buy an undervalued property with a small deposit (preferably under 20%). You cut down rent costs severely by living in a sharehouse, which will help you afford your mortgage payments.
Shared housing will put you on the investment ladder faster than if you were to pay rent alone. Also, entering the property market faster means benefiting from the next home value increase wave!
As a young investor, uncertainty might make it difficult for you to settle down in an owned property. You might want the freedom of moving houses or even cities in pursuit of a job or else.
Living in a sharehouse gives you more freedom to do that than renting a place alone. After all, wouldn’t it be easier to pack and move if you occupy less space? It’s no surprise that shared housing is common among young professionals who also want to travel or spend periods of time working abroad.
In the context of property investment, this solution means that you own an investment property to support you as you embrace life’s twists and turns!
Paying Less Rent
Whether you can afford to rent the property or not, you should consider sharehouses. After all, rentvesting only works if you have spare funds to invest or pay down debt, so it’s not enough to barely make your rent payments.
By splitting the rent with four or five other housemates, you can live comfortably in a neighbourhood that reflects the lifestyle you want and build your investment portfolio simultaneously.
The Final Word: Rentvesting and Shared Housing
Ultimately, rentvesting while living in a sharehouse will help you counter the housing supply challenges, start your investment portfolio, and build your wealth.
Contact us, and HERE Property experts will help you rentvest properly and make the best investment.