Rentvesting is a savvy approach to property investment, largely made popular among the next generation of purchasers, aged 25-34. It involves renting a property in your desired location while simultaneously investing in another property for rental income or capital growth. This strategy allows individuals to enter the property market without committing to living in their investment property, providing both financial flexibility and lifestyle freedom.
Rentvestors typically find themselves priced out of inner-city areas where they wish to reside. Instead of compromising on location, they choose to rent in these desirable urban centres while investing in more affordable properties elsewhere. This dual-strategy not only enables them to maintain their preferred lifestyle but also positions them strategically in the property market for long-term financial gain.
By leveraging rentvesting, buyers can break into the property market through investments while retaining control over where they live. In a seismic shift from prior generations, the new wave of rentvestors are doing-away with the notion of rent costs being “dead money” and that buying your first home (to live in) is a rite of passage.
This alternative approach to the property market takes a pragmatic and fiscally sound approach to living. We expect to see this strand grow as most capital cities continue to record median house prices over 1 million, with hobart only slightly behind at $939,000, making the barrier to entry even more unattainable for many.
