A wave of Sydney tenants are becoming landlords. Picture: Thomas Lisson
House mates Sarah Danskin and Annika DeBono have put a Gen Z twist on the concept of living together to save money.
The pair don’t just split the rental bills on their Sydney apartment – each is also a landlord in their own right trying to capitalise on runaway growth in real estate values.
They’re part of a growing cohort of young Aussies finding unconventional ways to scale the property ladder amid rising housing costs.
It comes as new research showed younger Australians – particularly women – were finding it increasingly difficult to buy homes, with only a quarter of those aged 18-29 owning real estate.
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Sarah Danskin with roommate Annika DeBono, both rentvestors. Picture: Thomas Lisson
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Ms Danskin, 27, said she decided to become a rentvester – someone who is both a renter and a landlord – after a mortgage broker told her a Sydney property purchase was unfeasible.
The steep prices and high interest rates would make it almost impossible to even purchase a nice apartment, she said.
Instead she used a buyers agent to help her purchase a home in a cheaper market, leasing it out, and the living and renting in her own desired area with a house mate.
“I wouldn’t be able to afford a nice apartment or anything in Sydney, so it was an easy decision,” she said. “I can get a better property and land in Queensland and I can still rent near home and near work in Sydney.”
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Sarah Danskin in her rental home. Picture: Thomas Lisson
Ms Danskin purchased a property in Townsville for $550,000 and she said the rent she receives covers her rent in Sydney.
“It’s been comfortable, daunting when you’re first trying to figure out your finances for such a long amount of time, but now its just routine,” she said.
“It covers most of the costs, but I put in 20 per cent of my mortgage repayments, so its still negatively geared.”
Her housemate, Annika DeBono, also had an investment property in Queensland, that she purchased two years earlier, so the two had the same budget and financial goals when deciding to move out together.
“We both knew our thoughts on money and not going over our budget was the same,” she said.
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The two friends and roommates, both also landlords, own investment properties in Queensland. Picture: Thomas Lisson
Little Real Estate executive general manager of sales and marketing James Kirkland has noticed increased amounts of rentvestors coming from Sydney, Melbourne and Brisbane.
“Many tenants are staying put in the area they want to live due to the interest rate rises, particularly in Brisbane and Sydney,” he said.
“What we are seeing is younger people who otherwise in different circumstances would be purchasing to be an owner-occupier, what we are seeing is that not being an option for the areas they want to live and reside, this is another way they can get on the property ladder and take that first step.”
This comes as recent research revealed that there was a large gap when it came to property ownership in Australia for young women.
Gen Z women aged 18-29 had only a 25.3 per cent ownership rate, compared to their male counterparts where more than half owned a property, at 51.6 per cent.
Source: PropTrack
This was despite women placing more importance on home ownership with CoreLogic head of research Eliza Owen saying “if men can attain dwelling ownership at a younger age, they are likely to benefit from greater levels of capital growth from the asset class over the long term.”
The two friends found an apartment in Mortdale this year, which they are renting for $550.
This allows them to afford their rent and pay for each of their investment properties.
Now that Ms Danskin has had a taste of rentvesting, her goals have changed.
“It’s convenient to stay near work and home and rent,” she said.
“Honestly now that I know that I can be comfortable with rentvesting I think I want to build a portfolio with the idea to eventually buying in Sydney.”
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