The Rise Of Rent-Vesting: A New Path To Property Ownership

With rising interest rates and property prices, traditional homeownership is increasingly out of reach for many first-time buyers. Instead of giving up, more Australians are turning to rent-vesting—a strategy where they buy investment properties while continuing to rent their primary residence.

‍

A Growing Trend

Mozo’s recent research reveals a 25% increase in first-home investors over the past five years. Many first-time buyers are opting for investment properties to benefit from capital growth and rental income, even if they can't afford to buy in their preferred area.

‍

State-by-State Breakdown

While most states are seeing growth in first-home investors, Victoria has experienced a slight decline since 2022. New South Wales leads the trend, with 9.42% of first-home buyers choosing investment properties in 2024, up from 8.62% in 2019. Queensland and South Australia have also seen significant increases, with figures rising to 7.53% and 7.79%, respectively.

‍

Conclusion: A New Route to Homeownership

As property prices continue to climb, rent-vesting is emerging as a viable alternative for first-time buyers. This strategy offers a flexible and potentially profitable way to enter the property market, providing a path to property ownership even in a challenging economic climate.