‘Rentvesting' can be ‘a good way to get into the property market,' economist says. Here's how it works

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“Rentvesting” means that someone rents their primary residence while trying to enter the housing market by buying a home they can afford elsewhere.

"Rentvesting" means that someone rents their primary residence while trying to enter the housing market by buying a home they can afford elsewhere.Not every renter wanting to buy a home dreams of ditching their lease. Some wish to remain tenants even as they become landlords.

Rentvesting may be an option for someone who has a relatively high income from a job in a major city where rents are high and home prices are even higher, said Hale. She said these individuals might have room in their budget to save but find it too expensive to buy a home in their metro area. Hale said the data does not necessarily distinguish whether the small investors are rentvestors. It also doesn't specify whether they own their primary residence or a second rental home.getting into the single-family home space and competing with owner-occupants," she said."Although big investors have been making headway and growing their share, they're still a relatively small share of the overall landlord population in the United States.

However, hiring a property manager comes at a cost, which depends on factors such as the property location and services provided. Property manager fees can reach up to 25% of the monthly rent price, depending on the specifications,

 

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‘Rentvesting' can be ‘a good way to get into the property market,' economist says. Here's how it works“Rentvesting” means that someone rents their primary residence while trying to enter the housing market by buying a home they can afford elsewhere.
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