How rentvesting helps young buyers enter property market
Rentvesting, once a fringe strategy, is now going mainstream as more first-home buyers realise they can't afford to live where they want to buy.
M R Advocacy director and buyers advocate Madeleine Roberts said the shift was being driven by affordability pressures and a sharper understanding of wealth-building.
'There's been a clear uptick in younger buyers choosing rentvesting, and it's largely out of necessity,' Ms Roberts said.
'Most entry-level buyers are priced out of the areas they actually want to live inm suburbs where the median house price is well above $1m.'
Instead, they're renting in lifestyle-rich areas and buying investment properties in suburbs with better growth potential.
'They're arming themselves with the right information and realising rentvesting is a smart way to build wealth without giving up lifestyle,' she said.
The M R Advocacy director said the strategy is especially popular among clients using self-managed super funds (SMSFs), with some choosing to buy property inside super for long-term gain.
'A lot of people are drawn to the idea of being in control of their financial destiny rather than relying on a fund manager,' Ms Roberts said.
'But the risks are real if you don't have the right strategy.
'Whether it's property or super, you can't just wing it.'
OpenCorp chief executive Cam McLellan said the most successful investors were combining strategies and staying flexible.
'You don't have to choose super or property,' Mr McLellan said.
'Smart investors are doing both. That's how you future-proof, multiple levers working together,' Mr McLellan said.
Mr McLellan said younger buyers often underestimated their potential.
'Too many buyers chase the wrong thing, it's not about the biggest house, it's about buying the best-performing asset and using your cashflow wisely.'
Super Members Council chief executive Misha Schubert said super shouldn't be overlooked in long-term plans.
'Super is one of the most powerful long-term tools Australians have, but it's underused and under-understood by younger people,' Ms Schubert said.
She added that super could complement newer strategies like rentvesting.
'Rentvesting shows how young Australians are finding smart ways to balance lifestyle and wealth creation.
'Super can play a part in that too, especially with voluntary contributions and tax-effective savings.'
Even as buyers rewrite the rules Ms Roberts said flexibility, information and strategy are the new pillars of the new Great Australian Dream.
'We're heading in that direction,' Ms Roberts said.
'Property is more expensive, but people still want to participate in the market and rentvesting gives them a way to do that without giving up on lifestyle.'
'It's adaptable, it's flexible, and it's increasingly popular with younger Australians trying to get ahead.'
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The Advertiser
3 hours ago
- The Advertiser
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The United Kingdom has underscored its commitment to AUKUS after revealing it will sign a new 50-year treaty with Australia, amid questions over US involvement in the trilateral security pact. The treaty will be inked when Foreign Minister Penny Wong and Defence Minister Richard Marles host their UK counterparts David Lammy and John Healey in Sydney on Friday for regular Australia-UK ministerial meetings, according to British news agency PA. "This historic treaty confirms our AUKUS commitment for the next half century," UK Defence Secretary John Healey said. While the AUKUS nuclear submarine partnership involves the US, UK and Australia, the treaty is between the latter two nations, as a Pentagon review into the agreement threatens America's future participation. Australia and the UK are expected to lay out the bilateral aspects of the agreement and explore ways the two countries can work together over the next half-century. 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Defence analysts believe a likely outcome of the US review will be a request for more money from Australia to support its submarine industrial base. The Australian government has said it remains confident in the nuclear-submarine deal being delivered. The UK has fast become one of Australia's most important defence allies amid turmoil under the Trump administration, a security analyst says. Australian Strategic Policy Institute senior analyst Alex Bristow said holding ministerial meetings on a six-monthly cycle, rather than the traditional annual timeline, highlights strengthened ties between the two nations. "The tempo of it increasing, I think, is a signal that Britain is moving into an elite category," he told AAP. The UK was probably third behind Japan and the US in terms of how strategically significant the defence relationship was to Australia, Dr Bristow said. 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He said NATO had identified China as a threat to its interests as Beijing continues to collaborate with Russia and North Korea. "It's entirely in the interests of European allies in NATO to be working with Indo-Pacific allies," Dr Bristow said. with PA The United Kingdom has underscored its commitment to AUKUS after revealing it will sign a new 50-year treaty with Australia, amid questions over US involvement in the trilateral security pact. The treaty will be inked when Foreign Minister Penny Wong and Defence Minister Richard Marles host their UK counterparts David Lammy and John Healey in Sydney on Friday for regular Australia-UK ministerial meetings, according to British news agency PA. "This historic treaty confirms our AUKUS commitment for the next half century," UK Defence Secretary John Healey said. While the AUKUS nuclear submarine partnership involves the US, UK and Australia, the treaty is between the latter two nations, as a Pentagon review into the agreement threatens America's future participation. Australia and the UK are expected to lay out the bilateral aspects of the agreement and explore ways the two countries can work together over the next half-century. In a joint statement, Mr Marles and Senator Wong said the Australia-UK Ministerial Consultations, or AUKMIN, were critical to the two nations' shared interests. "We take the world as it is - but together, we are working to shape it for the better," Senator Wong said. Under the $368 billion AUKUS program, Australia will buy at least three Virginia-class nuclear-powered submarines from the US in the early 2030s. A new class of nuclear submarines will be built in Adelaide and delivered in the 2040s. The US had promised to sell Australia nuclear-powered attack submarines under the AUKUS agreement, but President Donald Trump's administration has launched a review into the deal to examine whether it aligns with his "America first" agenda. Defence analysts believe a likely outcome of the US review will be a request for more money from Australia to support its submarine industrial base. The Australian government has said it remains confident in the nuclear-submarine deal being delivered. The UK has fast become one of Australia's most important defence allies amid turmoil under the Trump administration, a security analyst says. Australian Strategic Policy Institute senior analyst Alex Bristow said holding ministerial meetings on a six-monthly cycle, rather than the traditional annual timeline, highlights strengthened ties between the two nations. "The tempo of it increasing, I think, is a signal that Britain is moving into an elite category," he told AAP. The UK was probably third behind Japan and the US in terms of how strategically significant the defence relationship was to Australia, Dr Bristow said. Meanwhile, the UK's Carrier Strike Group, led by the Royal Navy flagship HMS Prince of Wales, arrived in Darwin on Wednesday in the midst of the Talisman Sabre multi-nation military exercises being hosted by Australia. It's the first UK carrier strike group to visit Australia since 1997. The international task group includes five core ships, 24 jets and 17 helicopters, centred on the flagship aircraft carrier. On Sunday, Mr Marles and Senator Wong will join their counterparts in Darwin to observe the UK Carrier Strike Group in action at Talisman Sabre. UK High Commissioner to Australia Sarah MacIntosh said the arrival of the strike group was a demonstration of commitment to the region and the strong relationship with Canberra. "This is an anchor relationship in a contested world," she said. Dr Bristow said Australia should be welcoming carrier strike groups from European countries. He said NATO had identified China as a threat to its interests as Beijing continues to collaborate with Russia and North Korea. "It's entirely in the interests of European allies in NATO to be working with Indo-Pacific allies," Dr Bristow said. with PA The United Kingdom has underscored its commitment to AUKUS after revealing it will sign a new 50-year treaty with Australia, amid questions over US involvement in the trilateral security pact. The treaty will be inked when Foreign Minister Penny Wong and Defence Minister Richard Marles host their UK counterparts David Lammy and John Healey in Sydney on Friday for regular Australia-UK ministerial meetings, according to British news agency PA. "This historic treaty confirms our AUKUS commitment for the next half century," UK Defence Secretary John Healey said. While the AUKUS nuclear submarine partnership involves the US, UK and Australia, the treaty is between the latter two nations, as a Pentagon review into the agreement threatens America's future participation. Australia and the UK are expected to lay out the bilateral aspects of the agreement and explore ways the two countries can work together over the next half-century. In a joint statement, Mr Marles and Senator Wong said the Australia-UK Ministerial Consultations, or AUKMIN, were critical to the two nations' shared interests. "We take the world as it is - but together, we are working to shape it for the better," Senator Wong said. Under the $368 billion AUKUS program, Australia will buy at least three Virginia-class nuclear-powered submarines from the US in the early 2030s. A new class of nuclear submarines will be built in Adelaide and delivered in the 2040s. The US had promised to sell Australia nuclear-powered attack submarines under the AUKUS agreement, but President Donald Trump's administration has launched a review into the deal to examine whether it aligns with his "America first" agenda. Defence analysts believe a likely outcome of the US review will be a request for more money from Australia to support its submarine industrial base. The Australian government has said it remains confident in the nuclear-submarine deal being delivered. The UK has fast become one of Australia's most important defence allies amid turmoil under the Trump administration, a security analyst says. Australian Strategic Policy Institute senior analyst Alex Bristow said holding ministerial meetings on a six-monthly cycle, rather than the traditional annual timeline, highlights strengthened ties between the two nations. "The tempo of it increasing, I think, is a signal that Britain is moving into an elite category," he told AAP. The UK was probably third behind Japan and the US in terms of how strategically significant the defence relationship was to Australia, Dr Bristow said. Meanwhile, the UK's Carrier Strike Group, led by the Royal Navy flagship HMS Prince of Wales, arrived in Darwin on Wednesday in the midst of the Talisman Sabre multi-nation military exercises being hosted by Australia. It's the first UK carrier strike group to visit Australia since 1997. The international task group includes five core ships, 24 jets and 17 helicopters, centred on the flagship aircraft carrier. On Sunday, Mr Marles and Senator Wong will join their counterparts in Darwin to observe the UK Carrier Strike Group in action at Talisman Sabre. UK High Commissioner to Australia Sarah MacIntosh said the arrival of the strike group was a demonstration of commitment to the region and the strong relationship with Canberra. "This is an anchor relationship in a contested world," she said. Dr Bristow said Australia should be welcoming carrier strike groups from European countries. He said NATO had identified China as a threat to its interests as Beijing continues to collaborate with Russia and North Korea. "It's entirely in the interests of European allies in NATO to be working with Indo-Pacific allies," Dr Bristow said. with PA
West Australian
5 hours ago
- West Australian
UK, Australia to ink new AUKUS deal amid US uncertainty, Penny Wong and Richard Marles host talks in Sydney
The UK will sign a new 50-year bilateral AUKUS treaty with Australia during ministerial talks in Sydney, as question marks continue over US involvement in the submarine project. Foreign Secretary David Lammy and Defence Secretary John Healey will meet their Australian counterparts Penny Wong and Richard Marles at the annual Australia-UK ministerial meeting, or Aukmin, in Sydney. They will then travel on to Melbourne to meet businesses involved in the AUKUS submarine program. They will also visit Darwin as the UK Carrier Strike Group docks in the Northern Territory. The AUKUS partnership between the UK, US and Australia involves building nuclear-powered attack submarines - including Australia acquiring its first such fleet - and co-operating in other areas of defence. It was agreed by the three countries in 2021, but the Trump administration has put it under review, raising fears it could pull out. The deal now being signed by the UK and Australia sets out the bilateral aspects of the partnership and how the two countries will work together to deliver the AUKUS submarine program over the next half-century. 'AUKUS is one of Britain's most important defence partnerships, strengthening global security while driving growth at home,' Mr Healey said. 'This historic treaty confirms our AUKUS commitment for the next half century.' He said people 'not yet born' will benefit from jobs secured through the deal. More than 21,000 people in the UK are expected to be working on the program at its peak. Mr Lammy said the UK-Australia relationship is 'like no other'. 'In our increasingly volatile and dangerous world, our anchoring friendship has real impact in the protection of global peace and prosperity,' he said. 'Our new bilateral AUKUS treaty is an embodiment of that - safeguarding a free and open Indo-Pacific whilst catalysing growth for both our countries.'
