Simpler home loans.
What a feeling.
We’ve simplified our home loans and dropped bundled packages.
No more packages. No annual package fee. Same great rates.
Article | 4 minute read
The hunt to find a home can be a long and emotional journey. Sometimes it’s good to take the time to reassess and make sure you’re on the right path. This means looking at all of your options – and one of your potential choices could be becoming a ‘rentvester’.
‘Rentvesting’ is a relatively new term, coined to describe property buyers who continue to rent the home that they live in, and rent out their investment property. This could be a property they plan to live in further down the track, or it could be bought purely as an investment.
If you’re just starting your search or you’ve been looking for some time, it’s a good idea to consider whether this might be an option for you. Like all things property, there are pros and cons, so here are five questions to consider.
If you have the option of paying little or no rent (eg. by living with your parents for a bit longer) this could be a great way to kick off your property portfolio. This could allow you to save additional money, while the rent from your tenants contributes to the home loan repayments on your investment property.
But if you’re looking to move ASAP (or maybe you just like your independence), then this mightn’t be the best fit.
Deciding to buy an investment property doesn’t have to mean buying your dream home and then renting it out. When you’re buying a rental property, you might need to have different considerations. You’re going to be thinking more about rental yield and whether this is a property that will help to build your equity in the future. Whether you personally like the property becomes a lower priority.
You might also want to take a good look at what kind of work you would need to do to make the property attractive to prospective tenants. Just bear in mind that renovating an investment property may mean a temporary loss of rental income.
Another option could be buying a property that’s already tenanted and simply allowing that relationship to roll on. If you decide to move in further down the track, you can give the appropriate period of notice. This can be managed through your property management service, if you’re using one.
There are various responsibilities that come with being a landlord – it means making sure your tenants have a comfortable, safe and secure place to live.
Take the time to consider how you would choose to manage this relationship – whether through a commercial management company, or whether you would be prepared to put the time into managing this yourself. Remember that you’ll need to include the cost of having your property managed in your budget, if this is the option that you choose.
The First Home Owner Grant generally won’t apply if you’re buying an investment property, so beware if you’re factoring that into your budget. Other concessions (eg. stamp duty concessions offered in some states or territories) may not apply to your investment property purchase. Usually these concessions are for first home buyers who are purchasing a property they intend to live in.
On the other hand, buying an investment property may mean being eligible for certain tax concessions. For example, you may be able to deduct the interest on your loan as a tax deduction against other income. There may be other tax benefits, so make sure you consult your accountant or financial adviser.
Get practical tips to help you in your property journey, whether you're just starting out, ready to buy, or trying to sell.
Get detailed property and suburb information to help you plan and be more informed when buying, selling or refinancing.
Get started in just 5 minutes. Apply for pre-approvaldisclaimer, a new home loan, refinance or top up your existing ANZ home loan.
You can also chat to an ANZ accredited broker for help with your home buying, investing or refinancing needs.
The information on this page does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you and read the relevant terms and conditions, Product Disclosure Statement and the ANZ Financial Services Guide (PDF) before acquiring any product.
Applications for credit subject to approval. Terms and conditions available on application. Fees and charges apply. Australian credit licence number 234527.
Applications for credit are subject to ANZ’s credit approval criteria. Terms and conditions, and fees and charges apply. Australian credit licence number 234527.
Property price information in an ANZ Property Profile Report is an estimate (not a valuation), may not be available for all properties, is for personal domestic use only and may change daily. Actual sale prices may differ. The report is not personal advice and ANZ takes no responsibility for any error or omission.
ReturnANZ may provide pre-approval (also known as approval in principle or conditional approval) to eligible customers who apply for an ANZ home loan and complete an application form and satisfy any other applicable requirements. Pre-approval is an approval for a loan subject to conditions being met, including that security is satisfactory to ANZ. Australian Credit Licence Number 234527.
ReturnANZ Mobile Lenders operate as an independently operated ANZ Mortgage Solutions franchise of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Australian Credit Licence Number 234527.
Return