Invest
What to know before rentvesting
New research has found that over half of investors are considering rentvesting in 2020. Here’s what you need to know before embarking on this strategy.

What to know before rentvesting
New research has found that over half of investors are considering rentvesting in 2020. Here’s what you need to know before embarking on this strategy.

Described as a strategy whereby an investor buys in one location and rents in another, “rentvesting” is becoming increasing common in Australia’s property market.
In fact, according to the 2019 PIPA Investor Sentiment Survey, 63 per cent of investors are considering rentvesting in the New Year.
Many have touted its benefits, including Justin Picker, who spoke on nestegg's sister publication, The Smart Property Investment Show earlier this year.
“If you’re able to live at home, or you’ve got cheap rent and stuff like that, it’s certainly something I would recommend – and build a property portfolio as well so that you’ve got some assets building for you in the background,” Mr Picker told host Phil Tarrant at the time.
“I just think it gives flexibility, and once we’ve got a little bit more certainty and those type of things, I’ll probably look to use that equity as a deposit for a house later on down the track.”
Particularly for people who cannot afford to buy in the major capital cities, it is not uncommon for investors to rent where they want to live in these cities, in order to make money while working harder on their investments, according to Mr Picker.
“I suppose the idea of rentvesting to me is certainly a way to go.”
However, despite the trend being picked up more and more, PIPA chairman Mr Koulizos issued a warning to novice investors who tried to follow this strategy without expert advice.
He said investing interstate required a strong understanding of local markets and cycles as well as state-specific legislation that can impact rental returns.
“Going it alone when investing in any property, anywhere is always a risky move,” Mr Koulizos said.
“These risks skyrocket when someone tries to do that in a location that they don’t understand, plus they often buy sight unseen because of the distances involved and wind up with a dud investment in an inferior location.”
Mr Koulizos said serious investors always use Qualified Property Investment Advisers (QPIA), especially when buying in locations hundreds of kilometres from their own backdoors.
“QPIAs can recommend the best locations as well as dwelling types for investors because they have the skills, experience as well as superior research and networks across the country,” he said.

Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more