At Blue Ocean Wealth we help you make smart choices with your money without compromising your way of living. Your lifestyle is our priority.
The trend described as “rent-vesting”, suits the lifestyle of many millennials, allowing them flexibility in where they live, giving them the opportunity to travel and at the same time allowing them to grow their wealth.
Buying an investment property first may help you achieve your ultimate goal of owning your dream home. An appealing factor to rent-vesting is that someone else pays your mortgage.
Imagine you find a property you’d like to call home, but can’t quite afford to buy it right now due to serviceability.
One solution could be to initially rent it out so the tenant helps pay off your mortgage until such a time as your finances improve and you can move in yourself.
You’re likely to find tax benefits, including depreciation and negative gearing, which may help you manage your loan for those first few difficult years. By using the rent coming in, plus any regular savings, your loan could be paid down much quicker than if you moved in straight away.
Before you adopt this strategy, make sure you get tax advice as your investment property could attract capital gains tax in the future, even if it becomes your main residence.
Follow the link below to schedule a meeting with one of our wealth management experts to find what the right strategy is for you. https://meetings.hubspot.com/blueoceanwealthmanagement