Online mortgage marketplace HashChing revealed that rentvesting was the most stressful way to own a home after 56% of reintvestors gave the housing option a stress rating of 6 or higher (with 10 being the highest) in a recent survey.
Additionally, among the 700 home owners surveyed in Q1 2018, rentvestors were the most likely to refinance, with nearly half (49%) having plans to refinance their mortgages in the next 6-12 months
There is an existing perception that rentvesting allows the best of both worlds – you can live where you want in a rental property, while someone else pays the mortgage on your investment property.
Mandeep Sodhi, CEO and founder of HashChing, noted that it requires work for one to maximize the benefits of rentvesting.
“There’s a lot more involved than just making sure your rent and mortgage is paid off every month. As a landlord, you need to factor in many additional and ongoing costs, from renovations, repairs and maintenance through to strata fees, land tax, landlord insurance and property manager fees.”
“If the existing tenant leaves, you’ll also need to shoulder the entire mortgage payment – in addition to the rent you’re already paying – until you find a new tenant. And that can sometimes take a few months. It’s no wonder that most rentvestors are tearing their hair out!” he explained.
On a more positive note, Sodhi pointed out that anyone looking to get into rent vesting should seek out a mortgage broker’s advice, as it could make this avenue of home ownership more satisfactory.
According to the latest industry research, 24% of first-home buyers in New South Wales and 20% of first-home buyers in Victoria are rentvestors.
Related stories:
13% of first-home buyers choose rentvesting
74% of Aussies think rentvesting is a good strategy
