For many young New Zealanders, the traditional pathway to homeownership — saving for a deposit to buy a home — is becoming less attainable. High property prices, increasing interest rates, and the allure of lifestyle locations are significant hurdles. However, an alternative strategy, known as "rent-vesting," offers a viable solution. This involves buying investment properties in economically sound areas while renting in a place that suits your lifestyle. This strategy has proven successful for a savvy young couple, significantly altering their financial landscape within just a year.
The couple embarked on their investment journey with the aid of Wolfe Property Coaching, focusing on building a portfolio that generates both income and long-term wealth. Their strategic approach helped them steer clear of common investment pitfalls, aligning their efforts towards financial freedom through property investment. Within 12 months, they acquired two cashflow-positive rental properties, each selected for its potential to appreciate in value and generate income.
The couple leaned heavily on the BRRRR method - Buy, Renovate, Rent, Refinance, Repeat - to accelerate their progress. This strategy allowed them to extract equity from each deal and roll it into the next. Here's how they did it:
- Buy: They targeted properties in high-growth areas with strong rental demand.
- Renovate: They made smart, cost-effective upgrades to increase the value and appeal of the properties.
- Rent: Once renovated, they secured tenants to generate consistent rental income.
- Refinance: With the increased value, they could refinance and pull out equity.
- Repeat: They used that equity to fund their second purchase.
The result? Two investment properties, six-figure equity gains, and positive cash flow - all within a single year.
Critical to their success was the support from a team of professionals, including mortgage brokers and property managers, who provided essential services and advice throughout their investment process. This network was crucial in helping them achieve their goals efficiently and effectively.
They also focused on financial returns rather than emotional purchases, allowing them to rent in a preferred location while their investments worked in the background. This strategy not only helped in managing their financial growth but also in maintaining their lifestyle preferences.
The couple's investment journey was showcased in a Wolfe Property webinar, where they shared insights into their strategy, the locations of their investments, renovation details, the equity they generated, and the rental income they now enjoy.
Their story is a testament to the fact that homeownership doesn't necessarily need to be the first step in one's property journey. By assessing long-term goals and focusing on what can financially propel one forward, potential investors can navigate the real estate market more effectively.
For those interested in exploring property investment further or understanding the specifics of buying and selling properties, Property Brokers offers a wealth of resources, including detailed guides on the buying process, property investment, and insights into different ways to buy properties in New Zealand.
Rent-vesting is a strategic approach that could significantly alter your financial future, enabling you to grow your investment portfolio while living in your ideal location
- Watch the full webinar here
Book a complimentary 15-minute consultation with Ilse Wolfe. As a seasoned expert in real estate, Ilse brings knowledge and personalised strategies to help you confidently navigate the market. Whether you're buying, selling, or simply exploring your options, this free session is your gateway to invaluable insights and tailored advice.
