Have you ever heard of rentvesting? How about coliving? Are you looking to diversify your investment property portfolio? Would you like to diversify it even further with a unique opportunity that not only lets you rent out your property while you live where you want, but also lets you increase revenues on your rental property?
So, you’ve built the foundation of your investment portfolio – congratulations! Now it’s time to take your investments to the next level using a strategy that combines high returns with long-term growth and flexibility: rentvesting with a co-living twist. It’s time for you to try rentvesting and co-living.
But what is rentvesting? What are the benefits of rentvesting? And how can you develop a solid rentvesting strategy that incorporates co-living properties?
What Is Rentvesting and Why Is It So Popular?
Rentvesting is a strategy that lets you rent where you want to live, while owning investment properties in areas with better growth potential. For example, you might work in the CBD and prefer the convenience of a low-maintenance apartment in an inner-city suburb. Rather than buying in that lifestyle location, you purchase an investment property in a high-yield growth suburb – giving you the best of both worlds.
This strategy is becoming popular among first home buyers, with Westpac’s annual Home Ownership report finding 54% are seriously considering it. However, this isn’t just a strategy for first-time home buyers. It can also be ideal for investors seeking greater flexibility and higher returns.
Building a Rentvesting Strategy with Co-Living in Mind
Instead of focusing on single-tenancy homes, a growing number of investors are now opting to rentvest properties that can be easily converted into co-living spaces. These properties combine spacious dual-living zones and multiple bathrooms with private apartments for multiple tenants.
The brilliant thing about co-living investments is that they allow for multiple tenants instead of just one. Not only does this reduce the financial impact when someone vacates the property, but it also allows for a higher overall rental yield (compared to a traditional single-family dwelling).
Benefits of Rentvesting with a Co-Living Focus
There are some exceptional benefits to investing in a property with a co-living focus.
Rentvesting = Higher Rental Yields
One of the best things about co-living investment properties is that they generate multiple income streams. This can increase rental yield by 20-40% when compared to standard investment properties.
Smart Tax Structuring
Building or renovating a co-living investment property can result in increased depreciation benefits, with deductions on building costs and fixtures potentially being used to offset your taxable income.
Portfolio Diversification
Co-living allows you to diversify your investment portfolio, while also tapping into a growing market demand for shared housing.
Increased Flexibility
The adaptable design of co-living investment properties provides more flexibility should market conditions or your personal needs change in the future.
Why Rentvesting Properties with INVIDA Makes Sense
Investing in a co-living property can be the ideal next step for both new and experienced investors seeking lower risk and higher returns. If you’re ready to take the plunge, INVIDA is here to help.
With our full-service model, we can help you build or renovate an investment property that is custom designed to suit the needs of co-living residents. We have a team of professionals to assist you throughout the entire process, from the initial strategy call right through to ongoing property management.
Rentvesting Meets Co-Living: Reimagine Your Investment Strategy
A co-living investment can be an ideal choice for investors looking to future-proof their portfolio with a flexible and high-yield property. Book a strategy call with the experienced team at INVIDA today and discover how you can maximise your returns with a co-living property.
