Rentvesting sanity check
I’m diving into the deep end with a big move by taking the common advice by putting our home on rent, then renting where we want to live.
HHI this FY was net ~331k.
Monthly spend, including a 3.5k mortgage at P+1 is about 7.5k. On an IO loan, the mortgage goes down to 3.2k.
We want to rent a place for 950 per week.
Current PPOR was appraised at around 580-620 per week rental income.
If I go for the 950 p/w nice house, our monthly spend goes up to $9250 per month.
All I want to know, as i’ve never been a big spender, is if this 950 per week figure is good and doable, and if people in similar income bands are paying around this much. And also - how much would be your upper limit in terms of living in a rental per week while having the IP generate rent on the side?
Cheers