Rentvestment Gains Traction as Affordability and Attitudes Shift
Rentvestment, a practice of buying a property to rent out while continuing to rent one's own home, is gaining attention. Media fascination and industry reports shed light on this growing trend, driven by affordability issues and changing attitudes towards renting.
Marc von Grundherr, director at London real estate agent Benham and Reeves, confirms the trend's growth, attributing it to lack of affordability and acceptance of renting as a long-term lifestyle choice. However, rentvestment is not without its drawbacks. These include potential increases in rental prices and mortgage rates, underestimation of property management costs, and changes in market regulations and tax liabilities.
Data from Realtor.com reveals that small investors, owning up to 10 properties, make up the majority (62.6%) of investor purchases in the first quarter of 2024. Charlie Clark, a 34-year-old in the UK, exemplifies this trend. He owns an apartment on the Isle of Wight, rented out on Airbnb, while living in a rental property in London.
Rentvestment's popularity reflects affordability challenges and evolving rental attitudes. Despite potential drawbacks, it offers an alternative path for investors and homeowners alike. Industry watchers anticipate further growth in this sector.
