Rentvesting Rising

Rentvesting is once again gaining momentum as first home buyers purchase where they can afford and rent where they actually want to live.

Westpac’s latest Home Ownership Report shows more than 54% of first-home buyers are considering rentvesting for their first purchase.

It shows investment is on the mind of many buyers with a 4% increase in Australians planning to purchase an investment property in 2025.

The report also shows that 82% of potential buyers are widening their property search and are open to purchasing in areas they hadn’t considered previously just so they can get into the market sooner.

Westpac senior economist, Matthew Hassan, says that more first-home buyers are considering rentvesting because of affordability issues and supply shortages.

“First-time buyers are at the pointy end of the affordability problems in Australia and becoming a first-time buyer is the hardest step of entering the market,” he says.

“I think rentvesting offers an alternative pathway that allows people to manage some of the financial risks that are involved with becoming a first-time buyer, while also sort of balancing lifestyle arrangements.”

The research shows that apartments and units have increased as the preferred property purchase by 7% in the past year and the preference for a townhouse has also doubled.