The Rentvesting Strategy
In this episode of The Court Of Public Opinion with Jeremy Cordeaux, real estate expert Neil Jenman discusses the concept of ‘rentvesting’ and how it can help Australians break into the challenging property market. With rising housing prices making it difficult for first-home buyers to purchase a home, Jenman offers a practical solution: rentvesting.
“Get on the property ladder, even if it’s a small step,” he advises, emphasising that owning property doesn’t necessarily mean living in it right away.
Rentvesting involves purchasing a property in an affordable area and renting it out, while continuing to live elsewhere. Often in a more convenient or desirable location that may be too expensive to buy into.
By adopting this approach, first-time buyers can build equity without the pressure of city home prices.
“It’s about getting your foot in the door,” Jenman explains, urging listeners to think long-term when considering property investments.
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Regional Centres Offer Opportunity
Jenman highlights the opportunities that exist in regional centers for first-time buyers, particularly those priced out of capital cities.
“Nice regional centers offer a stepping stone back into the market,” he says, suggesting that smaller towns and regions are more affordable and can provide a foothold into property ownership.
While these areas lack city prestige, they offer a viable option for those eager to build wealth.
Investing in regional centres also gives buyers the chance to benefit from future growth as these areas continue to develop. With better infrastructure and amenities, regional locations are increasingly appealing to renters and future buyers. Jenman emphasises that considering areas beyond major cities can be transformative for first-home buyers struggling to enter the market.
Investment as a Stepping Stone
One key advantage of rentvesting is using your first home as a stepping stone for future investments.
Jenman explains, “It’s all about using your first home as a stepping stone.”
By renting the property, buyers earn income while waiting to sell or relocate to a better area.
For those struggling to buy in major cities, rentvesting offers a practical path to property ownership and long-term financial growth. To hear more about Neil Jenman’s insights on rentvesting and other strategies for first-time buyers, listen to this episode of The Court of Public Opinion.
Topic time in podcast and video: 25:08 – 27:28
