Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Invest

Can rentvestors really have their cake and eat it too?

By Lucy Dean · June 20 2018
Reading:
egg
egg
egg

Invest

Can rentvestors really have their cake and eat it too?

By Lucy Dean
June 20 2018
Reading:
egg
egg
egg
Calm down, smiling cup, rentvestors

Can rentvestors really have their cake and eat it too?

author image
By Lucy Dean · June 20 2018
Reading:
egg
egg
egg
Calm down, smiling cup, rentvestors

Crack out the peppermint tea and go for a walk, rentvestors; it turns out you are the most stressed property owners and you need to calm down.

New data from online mortgage marketplace HashChing has suggested that rentvesting might not be all it’s cracked up to be.

It found that 56 per cent of people living in a rental property while leasing out their mortgaged property give their lifestyle a stress rating of six or higher, with 10 the highest stress rating.

The study also found that 49 per cent of rentvestors are considering refinancing their mortgage in the next six-12 months, making them the group most likely to refinance.

“There’s a lot more involved than just making sure your rent and mortgage is paid off every month,” HashChing CEO and founder Mandeep Sodhi said.

Advertisement
Advertisement

“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.”

Mr Sodhi said rentvestors also need to cover the mortgage if the existing tenant leaves, in addition to their own rent for months.

“It’s no wonder that most rentvestors are tearing their hair out,” he said.

“Many of our customers have successfully used rentvesting to build up an impressive property portfolio, but it’s not a path for everyone.”

Mr Sodhi said rentvestors paying an interest rate of 4 per cent or higher should consider refinancing and those considering rentvesting should ensure they understand and can shoulder the obligations.

Can rentvestors really have their cake and eat it too?
Calm down, smiling cup, rentvestors
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

LATEST POLL

Are you seeking alternatives to equity and property in the next 12 months?

Yes - 44.4%
No - 55.6%

Total votes: 473
The voting for this poll has ended

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.