By Graeme Salt
Over the past years, rentvesting has grown – where people rent where they want to live but buy an investment property elsewhere.
According to realestate.com.au, search activity suggests a share of first-home buyers are also signalling investment intent, consistent with rentvesting strategies.
Over the latest 12-month period to the end of January 2026, around seven per cent of first-home buyers searching in Greater Sydney also signalled investment intent.
Coincidentally, I am a rentvester – though far from a first-time buyer.
There are many reasons for rentvesting. I chose it more as a lifestyle choice; I rent a very modest granny flat near Sydney University as it gives me flexibility in where I want to live.
At the same time, I have built up a property portfolio in Sydney, Melbourne and Brisbane.
For the first-time buyer, rentvesting is seen as a means of getting a foot on the property ladder without having to sacrifice lifestyle.
For some, it’s a question of lifestyle, for others it’s simply a question of what they can afford.
While rentvesting intent is most pronounced in higher priced markets such as Sydney, elevated shares in some regional areas and in Adelaide and Perth suggest a broader dynamic at play.
In Adelaide and Perth and regional WA and SA, however, realestate.com.au noted that relatively higher shares of rentvesting intent may instead reflect stronger rental returns and yield.
One downside of rentvesting though is that you remain a tenant where you live and so have less control about things like renovations and risk facing the dreaded landlord’s inspection.
First-home buyers are facing the toughest struggle in history to break into the Australian housing market, with entry-level prices nationally rocketing by a staggering 68 per cent over the last five years,
According to new lending indicators data from the Australian Bureau of Statistics, loans to first-home buyers rose 6.8 per cent from the September to the December quarter in 2025 and are 9.1 per cent higher than the December 2024 quarter.
There’s no doubt younger Australians still want to buy property – whether they live in that property or treat it as an investment is often a personal choice that suits their own needs.
Graeme Salt is an award-winning mortgage broker. For a no-obligations consultation on your home loan needs, please contact him on 02 9922 5055
