A "rentvestor" is someone who rents a property to live in while simultaneously owning one or more investment properties. Instead of buying a home to live in, they choose to rent in a location that suits their lifestyle (like a more upmarket suburb or one closer to work), while investing in properties in areas where they see better financial returns or are more affordable. This strategy allows them to build wealth through property while enjoying the flexibility and convenience of renting in a preferred area.
Whilst it’s a cringeworthy portmanteau, rentvesting can be a good way to get a foot on the wealth creation ladder.
To decide if it’s an approach worth considering for your circumstances, consider the following:
Does property investment align with your financial goals?
Is the area you want to purchase in not suitable for your lifestyle or investment return requirements?
Can you afford to purchase in the area you would like to live?
What’s your priorities in terms of your living situation? Are you looking for flexibility or stability?
If you would like some guidance and advice, we would love to hear from you!