Young Australians are rewriting the rules of homeownership, using rentvesting to build wealth in high-growth suburbs while renting in lifestyle hotspots.
Millennials and Zoomers are tearing up the homeownership playbook, ditching the quarter-acre block in favour of something smarter — and far more flexible.
Rentvesting, once a fringe strategy, is now going mainstream as more first-home buyers realise they can’t afford to live where they want to buy.
M R Advocacy director and buyers advocate Madeleine Roberts said the shift was being driven by affordability pressures and a sharper understanding of wealth-building.
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“There’s been a clear uptick in younger buyers choosing rentvesting, and it’s largely out of necessity,” Ms Roberts said.
“Most entry-level buyers are priced out of the areas they actually want to live inm suburbs where the median house price is well above $1m.”
Instead, they’re renting in lifestyle-rich areas and buying investment properties in suburbs with better growth potential.
“They’re arming themselves with the right information and realising rentvesting is a smart way to build wealth without giving up lifestyle,” she said.
The four-step rentvesting strategy helping first-home buyers stay in the property market, without sacrificing lifestyle or flexibility.
M R Advocacy director Madeleine Roberts says rentvesting is booming among younger buyers priced out of $1m-plus suburbs but warns strategy is key.
The M R Advocacy director said the strategy is especially popular among clients using self-managed super funds (SMSFs), with some choosing to buy property inside super for long-term gain.
“A lot of people are drawn to the idea of being in control of their financial destiny rather than relying on a fund manager,” Ms Roberts said.
“But the risks are real if you don’t have the right strategy.
“Whether it’s property or super, you can’t just wing it.”
Opencorp chief executive Cam McLellan says the most successful investors are combining rentvesting with super to unlock long-term wealth and financial control.
OpenCorp chief executive Cam McLellan said the most successful investors were combining strategies and staying flexible.
“You don’t have to choose super or property,” Mr McLellan said.
“Smart investors are doing both. That’s how you future-proof, multiple levers working together,” Mr McLellan said.
Mr McLellan said younger buyers often underestimated their potential.
“Too many buyers chase the wrong thing, it’s not about the biggest house, it’s about buying the best-performing asset and using your cashflow wisely.”
Super Members Council chief executive Misha Schubert says super remains an underused but powerful tool for young Australians building their future.
Super Members Council chief executive Misha Schubert said super shouldn’t be overlooked in long-term plans.
“Super is one of the most powerful long-term tools Australians have, but it’s underused and under-understood by younger people,” Ms Schubert said.
She added that super could complement newer strategies like rentvesting.
“Rentvesting shows how young Australians are finding smart ways to balance lifestyle and wealth creation.
“Super can play a part in that too, especially with voluntary contributions and tax-effective savings.”
Even as buyers rewrite the rules Ms Roberts said flexibility, information and strategy are the new pillars of the new Great Australian Dream.
Pascal Butler, Georgia, and their daughter Mimi are renting in Box Hill in Melbourne while rentvesting in Perth using OpenCorp’s rentvesting strategy. Picture: David Caird
“We’re heading in that direction,” Ms Roberts said.
“Property is more expensive, but people still want to participate in the market and rentvesting gives them a way to do that without giving up on lifestyle.”
“It’s adaptable, it’s flexible, and it’s increasingly popular with younger Australians trying to get ahead.”
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