Latest news with #rentvesting
News.com.au
a day ago
- Business
- News.com.au
Revealed: Aus trend helping buyers beat record house prices
As home prices hit their highest levels on record, one trend is rapidly gaining traction, giving hope to buyers priced out of where they live in. Anant Shah, a 34-year-old father of two, and his wife Sweta, are among thousands of Aussies turning to rentvesting as prices rise – a way to benefit from better value and strong capital gains elsewhere while remaining where you want to live. Million-dollar savings: Brisbane's bargain suburbs exposed Mortgage data shows investor lending is now outstripping the rise in owner-occupier loans, doubling in the last four years alone. Queensland saw investor loans rise 24 per cent rise in the last year with two in every five new loans in the state now going to landlords. For the Shahs, buying where they live in a rental in Brisbane's Chapel Hill was out of the question – with median prices there surging 85.2 per cent during the pandemic to $1.565m now. 'The budget to buy in the suburb I am renting in is huge because Chapel Hill is near the city. Houses here are like around $1.5m. That's why we shifted our focus to buy an investment property where it fits our budget and still rent here where we want to stay.' 'If you want to grow your money and portfolio, you have to do some investment. You can buy a $1.5m house as owner-occupier but it would make it very difficult to buy an investment property after that for a while because of the mortgage.' Inside billionaire Annie Cannon-Brookes' revamp of trashed island He said they picked Ipswich for their first investment because it still gave them the option to move there if it ever became necessary. 'We were also not too sure about this investment plan as a whole so we wanted to buy something nearby. This is about 20 minutes drive from where I'm living. Also if we had to change our plans or something happens, we could easily try to move there and still be close to work.' The strategy has done so well for them they now also have an investment property in New South Wales. Future Strategy managing director Gareth Croy said 'rentvesting' was not a new trend in places like Sydney where people had to service massive mortgages to stay in their own home. But, he added, that same reasoning of massive mortgages due to record prices was now seeing the trend rapidly gain popularity in once affordable areas like Brisbane. 'Silly' price paid for unliveable 100-year-old cottage 'Rentvesting is definitely here to stay,' he said, to the point where it was even making financial sense for first home buyers. 'It makes sense for young people to get onto the property ladder even if they can't afford to buy where they want to live.' This is seeing a growing number of young first home buyers choosing to miss out on state FHB grants to just get their foot in the door as investors. Mr Croy, who has offices on the Gold Coast, in Sydney and Melbourne, has now opened a multidisciplinary financial services office at Eagle Street with 30 staff to cope with demand.
News.com.au
23-06-2025
- Business
- News.com.au
Melbourne renter makes $350k investing in unseen homes
Khaysan Kimberlin lives in an inner city unit with her dog Willow, but owns three properties in growth suburbs she's never stepped foot in. The rentvestor in her 30s said buying in the blue-chip inner suburb she calls home would have derailed her entire financial strategy, that will eventually allow her to buy. 'I could sell everything and own a place in the suburb I want outright,' she said. 'But that would completely defeat the purpose. I'm not chasing the Aussie dream of a white picket fence, I'm building wealth for the long haul.' Ms Kimberlin has mapped out a long-term strategy with help from property investment advisers OpenCorp, entering the market in Perth and Moama where the numbers stacked up. Her portfolio of three properties, all delivering strong capital growth, has built equity but costs her less than $100 a week to hold. Assuming a 20 per cent deposit, for as little as $120 a week, using a rentvesting strategy, OpenCorp are securing properties for $600,000 –$700,000. With another rate drop anticipated, this holding cost could be as little as just $100 a week for a $600,000-$700,000 asset. Her portfolio of three properties has built equity but costs less than $100 a week to hold. Her Perth property alone has risen in value by $350,000 in four years, she said. 'I've never even seen it, that's how unemotional the process was,' she said. 'I wasn't buying a home, I was buying a stepping stone.' New data shows houses in Melbourne's inner city ring were out of reach for first-time buyers without family help, with even unit prices regularly topping $700,000. But Ms Kimberlin, who works in Melbourne's sporting precinct, said the area ticks every lifestyle box. 'I grew up in the country, so if I'm going to live in the city, I want to be right in the heart of it,' she said. 'I love being able to walk to work, to the gym, to games at the MCG, it's perfect for where I am in life.' While friends her age have taken out larger mortgages for homes in Melbourne's middle ring, Ms Kimberlin said she chose to prioritise flexibility and future growth. 'I have friends who stretched to buy and now can't go on holidays or even enjoy their home properly,' she said. 'I did it differently, and it's changed my life. 'I've built equity, I've kept my lifestyle, and I'm not tied down by a huge loan.' She said many people still got caught up in emotion when it came to their first home, aiming for a suburb first, then scrambling to make the numbers work. 'Your first property doesn't have to be your dream home, it just has to make financial sense. Then use it as leverage.'
Daily Telegraph
23-06-2025
- Business
- Daily Telegraph
How rentvesting helps young buyers enter property market
Millennials and Zoomers are tearing up the homeownership playbook, ditching the quarter-acre block in favour of something smarter — and far more flexible. 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. RELATED: Revealed: Bodybuilder's secret $7m+ Melb hide-out Vic bidding ban nears as tenants priced out Named: Cheapest Melb suburbs to buy home '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.' Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox. MORE: Developer's bold plan for $50m Melbourne site What sold this hero cop's family home Melb buyers heat up market in cold snap
News.com.au
23-06-2025
- Business
- News.com.au
How rentvesting helps young buyers enter property market
Millennials and Zoomers are tearing up the homeownership playbook, ditching the quarter-acre block in favour of something smarter — and far more flexible. 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.'
News.com.au
22-06-2025
- Business
- News.com.au
How rentvesting helped this couple build real wealth
Smart buyers aren't choosing between super and property, and this Melbourne couple proves the most successful investors aren't picking between super and property, they're doing both. And Rob Bright and Siobhan Freeman are living proof. The Melbourne couple, who rent in Hampton but own in booming Ripley, Queensland, say they've already seen the pay-off of thinking differently, and they're not done yet. Buyers eyeing forgotten Melb Woolies store 'We live in Hampton and own in Ripley in South East Queensland,' they said. 'We bought in Ripley as a rentvestment in March 2021 and have lived in Hampton the whole time.' According to PropTrack data, Ripley house prices have jumped from $320,000 to $749,900 over the past decade, an average annual increase of 8.9 per cent, beating the 5.7 per cent average return delivered by Australia's top-performing super funds in the same period, according to SuperRatings. And with Melbourne's market rebounding, the couple said they could now be eyeing suburbs like Cobblebank, 11 per cent, Weir Views, 10.9 per cent, Aintree, 10.4 per cent, and Mickleham 9.9 per cent for their next investment. 'We definitely feel the market has changed and we are eager to get back in,' they said. For the couple, the strategy has always been about flexibility and smart planning, not chasing the status quo. 'Rentvesting was always part of our plan. It works for us.' OpenCorp chief executive Cam McLellan said the most successful investors weren't choosing between superannuation and property they were combining both. 'You don't have to choose super or property. Smart investors are doing both,' Mr McLellan said. 'That's how you future-proof, multiple levers working together.' Mr McLellan added that many buyers underestimated the leverage and tax benefits of owning strategically, especially in growth corridors. For Rob and Siobhan, the focus is on what works, not what looks good on paper. 'We've just found that rentvesting gives us the best of both worlds,' they said. 'We love where we live, and we're building equity somewhere with strong returns.'
