Rent money isn’t necessarily dead money… with THIS approach by millennials.

There’s no denying it. Buying a property is a big decision. But, for young people who fear they’re not ready to commit to one suburb, one house or one community, there are options.

Date:

05-Aug-2020

Category:

Buying

Tags:

Author:

Amanda Smith

Rent money isn’t necessarily dead money… with THIS approach by millennials.

There’s no denying it. Buying a property is a big decision. But, for young people who fear they’re not ready to commit to one suburb, one house or one community, there are options.

Some people find joy and satisfaction living in a house they own. Others, however, want to own property but still focus on other areas of their lives – like moving elsewhere, travelling or even starting a business.

‘Generation rent’, explained

It’s a housing trend that many young people are leveraging, to get a foot on the property ladder without sacrificing their freedom. Millennials have coined a phrase, ‘generation rent’, which essentially means owning an affordable property in an up-and-coming suburb, while still renting in a desirable area. The house is rented out, a strategy which covers a large portion, if not all, of the monthly mortgage payment.

No, this concept isn’t exactly new. Today, more young people are buying homes later, in favour of a flexible, independent lifestyle. By securing an affordable property in a booming area and renting it out, millennials don’t have to choose between their desired lifestyle and future financial freedom.

Live where you want & put your money to work

‘Generation rent’ is a win-win. You get to live where you want AND funnel your money into an investment that’ll support your path to financial freedom. There’s another key advantage that’s also important to mention: less emotion = more opportunities.

There are homes on the market that are great investment options, but not necessarily properties people want to live in. By investing and renting it out, it takes away that emotional charge, so it opens up the options available.

While this is a lucrative path to enter the property market, it’s not without pitfalls. The location is still important, even if you won’t live in it. It’s essential to pick a fast-growing area with plenty of developments in the works. Make sure you have a safety net to access, for those emergency repairs and home improvements. This is where working with a team of professionals is absolutely necessary, especially if you want this to run in the background, as you enjoy your lifestyle.

Buying an investment property in the Adelaide Hills

Would you like to learn more about house prices in the Adelaide Hills? Weighing up renting vs. buying in our region? The Hills is peppered with investment opportunities, particularly in adjoining suburbs like popular Mount Barker.

Book in an appointment with First National Nitschke. Our real estate agents can help you find the best investment property in the Adelaide Hills or Fleurieu Peninsula, then hand it over to our property management team to handle the tenant side.  Contact us direct here or fill in this enquiry form.

Millennials, you had it right all along. You CAN have it all.