Guest Blog: Inner City Taste for Investors on an Outskirts Budget

From time to time, we love to bring the expertise of our partners straight to you. Our trusted buyers agent Stephanie Davies, Wealthi’s Investment Director, shares her view on how millennials and forward-thinking Aussies can build wealth, while maintaining their desired lifestyle. 

For many, living an inner-city lifestyle seems like a far stretch but if you put your mind to it, a simple strategy is key to unlocking the dream.

It’s true! Changing your mindset could be the key to achieving the lifestyle you want on the budget you just simply don’t have.

As the Investment Director of Wealthi, I believe being aspirational in property is exactly what millennials need to do to live in the suburbs they dream of.

Living where you like and investing elsewhere is the perfect strategy for not only millennials but forward thinking Australians too – we call this rent-vesting. Sydney’s eastern suburbs for example, have uncovered amazing COVID rental deals – and the savings over a single lease period alone can be enough to pay for a deposit in a high yielding investment in Canberra, Melbourne or Sydney’s outer fringe that we have secured.

Rent-vesting is an ideal strategy for those who want to build wealth, but like to keep their living arrangements fluid around career, relationships or growing families. By building wealth through a rentvesting strategy, you’ll be not only able to afford a property in the Nation’s outer middle ring suburbs, but the dreamy, expensive inner city ones too.

Thanks to the pandemic (and some long-standing Government initiatives) the new incentives and stimulus extensions are the talk of the town. Savvy Aussies can more easily afford to buy in the investment and younger areas.

For example, let’s take the Builders Grant (different in every State and Territory).

First home buyers and first time investors that once thought a home was unachievable in capital cities under $1.5mil with land, are finding that with some help from the government and a few short-term lifestyle sacrifices – they can get into a house/land package in no time.

Whilst incentives and grants are typically for homeowners, investors can live in there and relocate a few years later. This is still worth it as an investment.

Essentially, a mindset change is the driving force for getting this right.

Not only is living where you love and investing where you can afford a dream situation for many, it’s also practical.

By rentvesting, you’re expanding your financial horizons and don’t forget how much easier it is to upgrade your rental property when the time is right than upgrading your home.

It’s simply faster and cheaper to upgrade a rental property instead of buying and selling.

The strategy is perfect for those who are running fluid lives and desire to be flexible within their career and budget restraints. It essentially allows you to set and forget about your investments and get them paying for themselves.

In turn, you can feel free to move around and live wherever you like, within the available means of course.