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Millennials fuel property investment boom through ‘rentvesting’


Millennials are driving a surge in property investment, increasingly turning to ‘rentvesting’ as a way to enter the market and build wealth, according to local buyer’s agent George Cherchian from James Chase Buyer’s Advocacy.

Rentvesting, where investors rent their primary residence while owning an investment property elsewhere, is appealing to younger Australians who want to remain flexible in their living arrangements while still getting a foot on the property ladder.

“We’re seeing a surge of millennial clients who are eager to enter the market through rentvesting. They do their research and they’re not afraid to make bold moves if the numbers add up,” Cherchian said.

Commonwealth Bank data supports this trend, showing that millennials made up 46% of the bank’s new property investors in 2023.

“Millennials are looking at the long-term benefits. Rentvesting not only enables them to get onto the property ladder sooner, but it also positions them strategically for future financial security,” Cherchian said.

The key to successful rentvesting lies in choosing properties based on potential returns rather than personal living preferences, with Cherchian advising investors to look for assets that grow in value and generate good rental returns.

“The key to successful rentvesting lies in choosing the right property in the right place at the right price. You want an asset that grows in value and generates good rental returns. So it’s about finding properties where the numbers work best,” he said.


However, Cherchian also noted that rentvesting comes with some drawbacks, such as missing out on first home owner grants and schemes, potentially facing capital gains tax when selling, and the responsibilities and financial commitments of being a landlord.

He stressed the importance of education and planning for those considering rentvesting, advising millennials to understand the basics of property investment and the financial implications of being a landlord, study potential markets, and seek professional guidance from mortgage brokers and buyer’s agents.

Recent Australian Bureau of Statistics lending data shows the value of new investor loans in February was up 21.5% from last year, with these loans now making up over half the growth in new loans over the past year.

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