In 2018, research showed that 36 per cent of first-time home buyers opted to invest in property and continue to rent instead of buying a home to live in. The data gathered by the 2018 Property Investment Professionals of Australia (PIPA) discovered that “rentvesting” is an investment strategy that has been around for a long time.
More and more first-time buyers are “rentvestors” rather than simply homeowners. According to to ABS statistics, 18 per cent of dwellings in Australia were to first-time buyers in September. Softer market conditions are making it easier for first-time buyers, said PIPA Chairman Peter Koulizos.
Property ownership appears to be achievable to this strategy and, according to Mr. Koulizos, many first-time buyers are opting to improve their financial futures by investing in more affordable locations while renting elsewhere.
Another trend that the PIPA Investor Sentiment Survey discovered was that first-time buyers oped to buy existing property instead of a new dwelling. Mr. Koulizos noted that existing properties often had greater capital growth.