Opinion
The maths justifying rentvesting has changed. Here are the numbers
This strategy was once a neat way to build wealth. But the maths has changed.
Kelly KennedyContributorRentvesting – renting a home where you wish to live while buying an investment property elsewhere – is often touted as a strategy for first home buyers to get into the market. But with interest rates stubbornly higher, is it a worthwhile strategy?
One of the goals of rentvesting is to cash in on the capital gain of the investment property and use it to purchase your dream home in the future – either by selling the property and realising the profit or by using the equity gained as the value of the property increases and the loan balance reduces over time.
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