WHY SHOULD WOMEN RENTVEST BEFORE BUYING THEIR OWN HOME?
Jun 26, 2023
by: Julie Crockett, Australian Property Investment Solutions
1. Financial Independence
Buying an investment property before purchasing a personal home can be a strategic move for women seeking financial independence. It allows them to generate passive income, which can provide financial security and the ability to fund their future goals.
2. Wealth Creation
Investing in an income-generating property offers women the opportunity to build long-term wealth. Property values tend to appreciate over time, providing a potential increase in the initial investment. By leveraging their equity, women can further expand their investment portfolio and create a solid foundation for future financial growth.
3. Diversification of Assets
Owning an investment property diversifies a woman's asset portfolio beyond traditional investments like shares. Real estate is a tangible and resilient asset, providing stability and potential income during market fluctuations. Diversification minimizes risk and enhances overall financial stability.
4. Tax Benefits
Investment properties often come with significant tax advantages (depending on how it is geared). Women can benefit from deductions on mortgage interest, property management fees, repairs, and maintenance expenses, reducing their overall tax liability. These tax benefits can effectively increase the return on investment and help women save more money for their future financial endeavours.
5. Flexibility and Mobility
Renting out an investment property offers women flexibility and mobility. It allows them to maintain a more transient lifestyle, making it easier to adapt to career changes, relocation opportunities, or personal circumstances. This flexibility can be particularly advantageous for women who prioritise lifestyle.
6. Building Confidence and Knowledge
Investing in real estate requires research, analysis, and decision-making, which can empower women and enhance their financial literacy. When buying an investment property, women can gain valuable experience in how the entire process works including: property management, negotiation, and cash flow. This knowledge and confidence can have a positive impact on their overall financial journey, empowering them to make informed decisions in other areas of their lives.
Women can benefit from buying an investment property before purchasing their own home and often the costs will necessitate which they buy first.
Buying an investment property provides women with financial independence, the opportunity for wealth creation, asset diversification, tax advantages, flexibility, and the chance to build confidence and knowledge. By prioritising purchasing an investment property first, women can set a strong foundation for their financial future and pave the way for greater financial success and security.
