Why first homebuyers should consider rentvesting
Most first homebuyers have an idea of the suburb they’d like to live in. Perhaps it’s a coastal or inner-city area, or a home near work, schools, and restaurants. The trouble is that buying in established suburbs can be pricey.
It’s the reason rentvesting is seriously #trending among first homebuyers. Simply put, rentvesting is when you purchase an investment property in an affordable suburb, while continuing to rent in a suburb you enjoy.
‘Rentvesting is all about flexibility and living the lifestyle you want, while breaking into the property market and strategically building wealth to set yourself up for the future,’ says Homebuyers Centre New Homes Consultant Nunzio Bagnato.
‘Renting allows you to live where you want, while investing provides diversification, affordability and potential tax benefits.’
Often, the rental income generated by an investment property can cover a large percentage of your mortgage repayments – if not all of it!
Why townhouses are a good investment option
If you’re a rentvestor with a smaller budget, then townhouses can be a super affordable investment option.
Townhouses offer all the functionality of a standalone home, while sharing an adjoining wall with its neighbour. The smaller footprint mean more properties can be built on less land, and developers can ultimately sell them at a cheaper price.
Townhouses also tend to require less maintenance than a standalone property, saving you time and money.
‘Their convenient location in urban or suburban areas, close to amenities and employment centres, attracts tenants and a reliable rental income,’ adds Nunzio.
How to build a townhouse that attracts tenants
If you choose to build a townhouse as an investment, it’s important to balance attractiveness and price. You want the home to have all the amenities that appeal to tenants and attract higher rental income, but without spending copious cash.
Thankfully, Homebuyers Centres premium standard inclusions and upfront pricing means you know exactly what you will need to pay before putting down a deposit.
‘This gives you peace of mind that you’re getting a home that tenants will love, while also being able to confidently crunch the numbers and make sure you are entering into a smart investment,’ says Nunzio.
Nunzio suggests sticking with a neutral colour palette that appeals to the widest range of tenant tastes and age groups. However, Homebuyers Centre’s pre-curated colour schemes Industrial and Adriatic also work well.
‘Think about what you would look for in a rental property. Look to upgrade the amenities and features that provide convenience for tenants and help make the space look instantly chic and modern,’ says Nunzio.
Are you considering rentvesting? A Homebuyers Centre townhouse may be more affordable than you think.
Offering moderns designs in prime locations across Melbourne and Regional Victoria, Homebuyers Centre townhouses offer the same quality and functionality of a standalone home.
Checkout our available townhouse developments here or reach out to our friendly team today so we can make your first home happen.