Seek good advice
Director of mortgage management
business FinancePath Chris Collard says it's vitally important to seek
out financial advice if considering the rentvesting route.
"I recommend finding someone - like a
mortgage broker - skilled enough to ask you the right questions because
property investment isn't always right for everyone. Anyone can use an
online calculator and find out what their borrowing power is. The
question is, how much can you afford while maintaining your lifestyle
without added stress and sleepless nights?"
Cons of rentvesting
- You miss out on the first home
buyer stamp duty exemption. You only qualify for this exemption if you
plan on living in your first property for at least 12 months.
- Capital Gains Tax (CGT) is
unavoidable. You'll be taxed on any profit you make when you eventually
sell your investment. CGT isn't a rentvester exclusive tax – anyone who
sells an investment or asset pays this. We recommend talking to your
mortgage broker who can explain CGT in more detail.
- As a renter, if your landlord
wants you out, you might over have 30-90 days to find a new home. As the
rental market fluctuates, it might be hard to find somewhere similar to
live within the same budget.
Choose a reputable third-party builder
By choosing Metricon, you have more than 40 years of experience behind you and a Lifetime Structural Guarantee* so
you can be confident you're investing in quality. You also have the
opportunity to walk through one of our display homes before making any
First home buyers could consider HomeSolution by Metricon's home, land and finance packages which are a popular choice for rentvesting.