When we talk about property ownership, most of us might think of mortgaging the home we live in. While this may have been the case several years ago, the fact is that the face of property ownership has changed. In these times of soaring growth in the real estate market, the number of first home buyers who are occupying their own home is shrinking while the group comprised of investors has been rapidly growing. Not only this, but the group of first home buyers who are also investors is now appearing on the radars of those who keep an eye on the property markets.

The homes in our neighbourhood, while once upon a time the most expensive purchase the average family would make, are now becoming assets in an investment strategy which is a direct result of the rising unaffordability of housing. Rentvesting has been on the rise in recent years as our property markets become increasingly difficult for young first home buyers in certain areas.

As discussed in this article on Realestate.com.au, rentvesting goes against the traditionally held notion that in the past, many would buy a home to live in. This has changed as first home buyers found that the traditional path involved greater sacrifice in terms of financial commitment and comprising on location. Rentvesting on the other hand allows young people to get involved in the property market to make sound financial decisions for the future, without having to sacrifice the flexibility of their current budget and location.

There are certain areas in our city where purchasing a property to live is not only more difficult due to the larger deposit required but also for the fact that the mortgage repayments would outstrip what you would be paying for a similar property while renting. This means that you can benefit from the low accommodation costs while also investing in an area that commands a greater yield compared to the area that you would otherwise be living.

We see this in an example in the article with Logan Nichols, a 22-year-old rentvestor who owns a property in Greenslopes. Mr. Nichols identified the areas to be a growth hot spot, being close to employment and transport as well as a short distance to the city. Mr. Nichols continues to share his lease with three others in East Brisbane being even closer to the Brisbane CBD.

It is this financial strategy that allows young people such as Mr. Nichols to live a lifestyle that is more suited to them in a location of their choosing. Rather than compromising and purchasing a house further from the city and enduring the commute, rentvestors can live in an area that works best for their unique situations without having to have the added stress of being a renter for life but instead, having a wealth building strategy that offers an alternative to living under a mortgaged property.

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