Best suburbs for rentvesting success in Australia revealed
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Photo by Vecislavas Popa
In a landscape where Australians are renting for nearly a decade before buying property, new data reveals that rentvesting might be the key to faster homeownership. This strategy involves purchasing an investment property in a burgeoning area while continuing to rent one’s primary residence. The latest insights from money.com.au highlight this growing trend, particularly as the average renting duration before buying stands at six years nationwide.
South Australia tops the list with the longest rental periods, averaging seven years, closely followed by New South Wales and Queensland at 6.5 years. Arjun Paliwal, CEO of Investorkit and author of “Driving the Data,” elaborates on the appeal of rentvesting in light of these statistics. “Rentvesting allows you to get your foot into the market until you get to the point where you can get the property that you would like,” he stated.
Paliwal emphasises that rentvesting not only facilitates earlier market entry but also offers a more data-driven approach to property investment. He explains, “If that selection has better results than the area you were looking in, not only can you keep in line with the market growth but you can outpace it.” This strategy has proven advantageous for many, enabling them to secure a home within three to ten years, rather than saving indefinitely for their ideal property.
In 2025, regional markets in New South Wales and Victoria have presented particularly affordable entry points. Paliwal identifies several locations where buyers can find freestanding houses within the $550,000 to $700,000 range, including Mildura, Albury Wodonga, Dubbo, Bendigo, and Ballarat. These areas have been described as a “game changer” for prospective rentvestors.
Paliwal highlights the impressive growth rates in these regions, noting, “These areas have been offering increasing growth rates growing at a minimum around eight per cent over the last 12 months up to about 15 per cent capital growth with Mildura and Wodonga leading the way.” This growth significantly outpaces the national average, offering promising returns for investors.
Cities like Townsville, Rockhampton, Bunbury, and Geraldton have also experienced substantial growth, with property prices remaining within the affordable range of $550,000 to $700,000. Paliwal points out that these markets have been particularly attractive for investors looking to maximise their deposits through strategic investments.
In addition to regional centres, capital cities such as Melbourne, parts of Perth, and Brisbane are witnessing a resurgence of investment interest. Paliwal observes, “These are some examples of cities that have helped people get ahead or are helping people currently get ahead.”
Despite the challenges posed by rising rent prices, Paliwal dismisses the notion of a “rental trap.” He argues, “When you are buying and selling a home, you have got to make up costs before you sell to actually not be backwards, but when you are renting you can move if you feel the budget is a bit tight.” This flexibility allows renters to adjust their living situations according to their financial circumstances, thereby facilitating entry onto the property ladder through various means, including first-home buying incentives, house sharing, or rentvesting.
Paliwal acknowledges that while the choices available to renters are not always straightforward, they are far from trapped. “The trap is a little bit overblown, people can make active choices although all the choices aren’t the easiest,” he said. Ultimately, he cautions against complacency in the face of rising rent prices, stating, “With rent prices that have been rising, sitting back isn’t going to be better for anyone.”
As Australians navigate an increasingly complex real estate market, rentvesting offers a viable strategy for those looking to enter the property market sooner rather than later. With strategic investments in growing areas, renters can potentially outpace market growth and secure their financial futures.