Following on from my previous post about rentvesting for the first home buyer, I am going to explore the strategy of how home upgraders could Rentvest their way into a better home.
In my last post I explained the primary reasons as to why you should consider buying investment properties. You can create long term wealth, set yourself up for financial freedom and take full responsibility for a self-funded retirement by creating a Passive Income.
In this post I am going to outline how a portfolio of properties could achieve this, but first lets reiterate what financial freedom is:
Financial freedom is achieved when your Passive Income is greater than all your expenses after tax.
Everyone has a different personal situation and future goals. You should work out what level of Passive Income you would like to achieve to meet your future goals. You might want a modest Passive Income that just supplements your regular income or you may aspire to replace your entire salary.
In my first few blog posts I wrote about three of the fundamentals of property investment – accessing your equity, leveraging your equity/savings, and compounding growth over the long term. All of this sounds great, but why would you consider using these principals and why should you invest in property?
The answer is simple – Investing in property can create long term wealth and building a portfolio of properties could help you achieve the ultimate goal of Financial Freedom.