As the economy teeters on the brink of a recession, potential home buyers wrestling with high-interest rates, low affordability, and overpriced homes are asking themselves how to build the wealth they need to purchase their first primary residence.
According to a consumer insights report issued by tech-enabled real estate company Mynd, millennials have found the answer.
A growing number of young adults are prioritizing “rentvesting” over homeownership.
Read also: Are Mortgage Rates Going Above 10% In 2023?
What is Rentvesting? Mynd says 43% of adults under the age of 40 are considering becoming “rentvestors” — the act of prioritizing buying an investment property (while renting a home) before a primary residence, in order to shore up the funds needed to purchase their dream homes.
The strategy refers to investing in, or buying and renting out an investment property in an affordable, up-and-coming area, while continuing to pay rent for your primary residence in your preferred location.
Naturally, the idea of owning investment homes to complement the primary residence has been around for a long time, but millennials are making an effort to control the expanding industry with a variety of instruments, like micro-investing, at their disposal.
How do I Rentvest? It’s easy. And, Benzinga has the tools — check out how you can invest in a rental property for as little as $100 (or more, depending on your appetite). Really, it’s that easy.
The trend, which first gained popularity in Australia's main cities, reflects how young people are unwilling to lower their standards of life in order to participate in the real estate market.
The goal of rentvesting is to safeguard your financial future without compromising your way of life. If done correctly, rentvesting's diversification strategy enables you to live where you want, rather than relocating to a neighborhood where you can afford to buy a house.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.