RENT-VESTING: How You Can Smash Avocados & Financial Freedom


The idea of home ownership in Australia’s current economic climate seems like an unattainable fantasy for many people. More so than in recent memory, First Home Buyers are staying at home longer to save bigger deposits to combat the rising wave of property prices that have carried Sydney and Melbourne property prices to a million dollar median.

Smashed avocado and spiced pumpkin lattes and the binge-worthy subscription economy of Television and home delivered McDonald’s has been blamed for the current generation of home buyer’s lack of serviceability on home loans.

Banks have also tightened their lending criteria, in order to fend off GFC 2.0 and foreign investors are being siphoned out of the property market by the Government to protect property developers from bankruptcy.

Those of us who can’t or won’t stay at home in the nest have bolstered the theory that we are a nation of renters. Paying “dead money to someone else’s mortgage”, destined to live in that cycle forevermore.

The stay-at-home-hipsters have made this the “new normal” in the current economic climate.

But it doesn’t have to be this way – enter the notion of rent-vesting.

This is a process whereby you purchase a property in an area that you may not necessarily want to live, but where your savings can afford, in order to get a foothold on the property ladder. This is one option for property investors that is seldom considered, because there is so much emphasis placed on purchasing your own home first before contemplating investment opportunities.

But that in itself creates an opportunity for the smart investor to capitalise on affordable opportunities in Melbourne and Brisbane where dwellings can still be purchased for less than $400,000 in desirable areas close to amenities and infrastructure.

So, while renting you are growing equity in a property that is receiving depreciation and rental income benefits that will improve your net worth, and afford you the option to use equity from your investment to expand the portfolio or purchase that home of your own that prior to your investment property purchase seemed like an unattainable fantasy.

If you’d like to create wealth through property investment without giving up spiced pumpkin lattes, call our customer service on (02) 4225 2440 or email