WTF Is ‘Rentvesting’ & Why Is Everyone Talking About It?


Buying a house is one of those things millennials have come to accept as more of a pipedream than a reality. Whilst many of us might like the prospect of owning a house one day, soaring property prices make the goal feel practically impossible.

But despite the grim property outlook, new research by found that a whopping 80% of young Aussies still want to own a home one day.

The question is, how the heck are we gonna do that if the house prices are so damn expensive?

Well, there are a few different options, each of which have their own pros and cons.

Firstly, you could consider moving back in with your family to help save enough money for a house deposit. It might not be hugely appealing for yourself (or your ‘rents), it’s definitely an idea not to turn your nose up at. In fact, the same research found that 40% of young Aussie renters would seriously consider moving back in with the fam to save money.

The downside? It might feel like you’ve lost your independence and, at times, as though you’ve taken a step backwards, but remember, it’s just temporary!

Another viable house-saving strategy is moving to one of Australia’s more affordable capital cities to minimise how much of your precious dollarydoos go towards rent. Similarly, if moving across the country isn’t quite feasible, you could always look into moving to a different, more reasonably-priced location in your current city.

When you move out of your preferred part of town, however, you’re also generally subscribing to longer commutes/earlier starts/later nights etc, which brings us to our last option…

There’s a new approach to property that’s gaining traction with an increasing number of homebuyers called ‘rentvesting‘. If you’re wondering what the hell it is, you’re not alone.

Rentvesting’ is basically having your cake and eating it too. The idea is that you rent in the location that you want to live in and, instead of putting aside money each week to save for your ideal home, you instead look at buying a cheaper investment property in the suburbs.

This investment property can then be rented out so that the tenants help pay off your mortgage – meaning it’s even less expensive each week, and also in the long term.

In 2014, one survey found that 20% of investors were ‘rentvestors’. By 2016, that number had increased 150%, bringing the figure closer to one in three. By 2019, that number could be as high as half.

For many, rentvesting offers a happy medium for people who want to own a property but aren’t quite sure where they want to live and would prefer the flexibility.

Not a bad idea, huh?