- The concept includes renting where you live and investing elsewhere
- Has been gaining popularity
- Is also considered an alternative to get on the property ladder
The concept of rentvesting is quite simple. The Property Tribune explored the idea in March last year, with Ben Plohl explaining:
“Some people rent in these locations [Cammeray, Mosman, Willoughby] already and have decided that it’s more affordable for them to continue doing so than stretch themselves too far financially to buy at the current time,” he said.
“Wisely, they are also deciding to make their available funds still work for them by buying elsewhere.
“For example, $900,000 may not secure you much real estate on the North Shore, but it could potentially buy you two houses in a more affordable capital city or major regional location, which are also experiencing strong market conditions.”
Simply put – rent where you want to live, and invest in another property.
More on rentvesting here.
The idea of renting where you live and investing elsewhere has been gaining popularity, with The Property Tribune also covering the idea as an alternative to the traditional Great Australian Dream of home ownership, and industry leaders telling The Property Tribune that the concept is well established among the cohort of new property owners.
Top 10 rentvesting suburbs $500K to $600K
| Rank | State | Suburb | Postcode | Median sale price for houses | Vacancy rate for houses | Median yield price for houses |
| 1 | NSW | Karuah | 2324 | $562,500 | 0.0%* | 4.4% |
| 2 | TAS | Claremont | 7011 | $560,000 | 1.1% | 4.4% |
| 3 | TAS | Invermay | 7248 | $502,000 | 0.8% | 4.4% |
| 4 | VIC | Wodonga | 3690 | $505,000 | 0.5% | 4.3% |
| 5 | TAS | Summerhill | 7250 | $535,000 | 0.6% | 4.3% |
| 6 | TAS | Kings Meadows | 7249 | $550,000 | 0.7% | 4.3% |
| 7 | TAS | St Leonards | 7250 | $535,000 | 1.3% | 4.2% |
| 8 | VIC | Tawonga South | 3698 | $565,000 | 0.0%* | 4.1% |
| 9 | NSW | Bega | 2550 | $582,000 | 1.2% | 3.8% |
| 10 | NSW | Woodberry | 2322 | $555,000 | 0.0%* | 3.7% |
Source: Well Money.
Well Money commissioned new research to find the top 30 rentvesting suburbs in Australia.
Well Money’s CEO Scott Spencer said he feels for first home buyers because conditions are tough:
“Prices are falling, which is making housing more affordable. However, prices are falling from a high base, so they’re still elevated,” he said.
“First home buyers who live in capital cities and have a budget of $500,000 to $800,000 have a tough choice to make.
“They can buy a unit in the inner or middle rings, which would give them a convenient location but maybe not the amount of space they want.”
Mr Spencer said the alternative was to purchase a house in the outer rings, but commutes may be offputting.
“That’s why rentvesting can be a great choice for some first home buyers, because it can give you the best of both worlds.”
Scott Spencer, CEO Well Money
“They can keep renting in the inner and middle rings and buy a house in a completely different location – one that not only fits their budget but also hs good long-term growth potential and good cashflow.”
Top 10 rentvesting suburbs $600K to $700K
| Rank | State | Suburb | Postcode | Median sale price for houses | Vacancy rate for houses | Median yield price for houses |
| 1 | TAS | Berriedale | 7011 | $620,000 | 0.7% | 4.2% |
| 2 | TAS | Norwood | 7250 | $603,000 | 1.4% | 4.1% |
| 3 | TAS | Mornington | 7018 | $630,000 | 0.0%* | 4.1% |
| 4 | NSW | Raymond Terrace | 2324 | $610,000 | 0.4% | 4.1% |
| 5 | TAS | Lutana | 7009 | $662,000 | 1.0% | 4.1% |
| 6 | VIC | Baranduda | 3691 | $610,000 | 1.2% | 4.0% |
| 7 | NSW | Mallabula | 2319 | $620,000 | 0.0%* | 4.0% |
| 8 | NSW | Wauchope | 2446 | $635,000 | 0.8% | 4.0% |
| 9 | TAS | Riverside | 7250 | $632,000 | 1.0% | 3.9% |
| 10 | TAS | Newstead | 7250 | $680,000 | 0.5% | 3.8% |
Source: Well Money.
Top 10 rentvesting suburbs $700K to $800K
| Rank | State | Suburb | Postcode | Median sale price for houses | Vacancy rate for houses | Median yield price for houses |
| 1 | TAS | Geilston Bay | 7015 | $770,000 | 1.0% | 4.1% |
| 2 | NSW | Medowie | 2318 | $770,000 | 0.8% | 4.0% |
| 3 | ACT | Charnwood | 2615 | $718,000 | 1.0% | 4.0% |
| 4 | NSW | Macquarie Hills | 2285 | $785,000 | 0.0%* | 4.0% |
| 5 | NSW | Maryland | 2287 | $715,000 | 0.3% | 3.9% |
| 6 | NSW | Watanobbi | 2259 | $715,000 | 0.9% | 3.9% |
| 7 | NSW | Hawks Nest | 2324 | $710,000 | 0.8% | 3.8% |
| 8 | NSW | Cardiff South | 2285 | $740,000 | 1.2% | 3.8% |
| 9 | NSW | Mount Hutton | 2290 | $755,000 | 1.3% | 3.8% |
| 10 | NSW | Blue Haven | 2262 | $750,000 | 0.2% | 3.7% |
Source: Well Money.
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