Hayley McCoy has jumped on the rentvesting bandwagon, opting to buy in Brisbane and rent in Sydney.
She is currently renting a unit with two other housemates for $1100 in Rozelle in Sydney, but took the leap and bought a two-bedroom unit in Clayfield, an inner-city suburb in Brisbane, just to get on the property ladder.
“The plan was just to get my foot in the (property) door and I had grown up around Clayfield so I was comfortable investing there,” the 33-year-old said.
“I had looked around Sydney (to buy) but really, it just wasn’t achievable.”
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Pictured at her rental at Rozelle in Sydney is Hayley McCoy. Hayley has bought an apartment in Brisbane. Picture: Richard Dobson
Hayley, who works in corporate events, said she rented a one-bedroom unit when she first moved to Sydney about five years ago, but even then the cost was “a bit much”.
“I was lucky then as it wasn’t as hard (to find a rental) but now, I have friends who have found it very tough,” she said.
“I would say about 90 per cent of my friends are still renting, and my plan is to potentially move back to Brisbane … that option is there.”
But for now, Hayley says rentvesting is working for her, and has urged first time buyers struggling to get off the rental merry-go-round to look outside of where they are living.
She pays just shy of $2500 a month in mortgage repayments and earns $510 a week in rent from her Brisbane unit.
In terms of rent, based on three tenants and a weekly total rent of $1100, rent costs Hayley about $1500 a month in Sydney.
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Sydney has Australia’s most expensive real estate, with people leaving the city in droves. Photo – iStock
“I would get nothing in Sydney for what I bought my Clayfield unit for,” she said.
“So my suggestion would be to look to other areas.
“And don’t wait! Even when I bought, it was a bit more than what I wanted to spend but it has already gone up in value.
“The longer you wait, the harder it will be.”
The median house price in Rozelle is $2.24 million, while for units it is $1.42 million.
The median asking rent for houses is $1000 a week and $780 for units.
In Clayfield, the median house price is $1.9 million while for units, it is $573,500.
A two-bedroom unit in this Clayfield complex recently sold for $540,000
The median asking rent is $800 for houses and $525 for units, according to the latest REA Market Trends report.
The gross rental yield in Clayfiled is 2.19 per cent for houses and 4.76 per cent for units, while in Rozelle it is 2.32 per cent (houses) and 2.86 per cent (units).
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