The following article was taken from The Courier Mail, published on Saturday, 19th July. Read the article in full below.
As home prices hit their highest levels on record, one trend is rapidly gaining traction, giving hope to buyers priced out of where they live.
Anant Shah, a 34-year-old father of two, and his wife Sweta, are among thousands of Aussies turning to rentvesting as prices rise – a way to benefit from better value and strong capital gains elsewhere while remaining where you want to live.
Mortgage data shows investor lending is now outstripping the rise in owner-occupier loans, doubling in the last four years alone. Queensland saw investor loans rise by 24% in the past year, with two in every five new loans in the state now going to landlords.
For the Shahs, buying where they live in a rental in Brisbane’s Chapel Hill was out of the question – with median prices there surging 85.2 per cent during the pandemic to $1.565m now.
“The budget to buy in the suburb I am renting in is huge because Chapel Hill is near the city. Houses here are around $1.5m… that’s why we shifted our focus to buy an investment property where it fits our budget and still rent here where we want to stay.
“You can buy a $1.5m house as an owner-occupier, but it would make it very difficult to buy an investment property after that for a while because of the mortgage.” He said they picked Ipswich for their first investment because it still gave them the option to move there if it ever became necessary. The strategy has done so well for them that they now also have an investment property in NSW.
Your Future Strategy managing director, Gareth Croy, said “rentvesting was not a new trend in places like Sydney, where people had to service massive mortgages to stay in their own home.”
About Your Future Strategy
Your Future Strategy is a multi-disciplinary financial services firm with experts across the financial landscape including qualified professionals in financial planning, strategic accounting, lending, investments, estate planning and superannuation.
As financial strategists, they help create a well-designed pathway for people to tick off financial goals to give them choice in their future, whether that’s saving for children’s schooling and university, building a significant property portfolio, creating and protecting their legacy, or retiring early.
The following article was taken from The Courier Mail, published on Saturday, 19th July. Read the article in full below.
As home prices hit their highest levels on record, one trend is rapidly gaining traction, giving hope to buyers priced out of where they live.
Anant Shah, a 34-year-old father of two, and his wife Sweta, are among thousands of Aussies turning to rentvesting as prices rise – a way to benefit from better value and strong capital gains elsewhere while remaining where you want to live.
Mortgage data shows investor lending is now outstripping the rise in owner-occupier loans, doubling in the last four years alone. Queensland saw investor loans rise by 24% in the past year, with two in every five new loans in the state now going to landlords.
For the Shahs, buying where they live in a rental in Brisbane’s Chapel Hill was out of the question – with median prices there surging 85.2 per cent during the pandemic to $1.565m now.
“The budget to buy in the suburb I am renting in is huge because Chapel Hill is near the city. Houses here are around $1.5m… that’s why we shifted our focus to buy an investment property where it fits our budget and still rent here where we want to stay.
“You can buy a $1.5m house as an owner-occupier, but it would make it very difficult to buy an investment property after that for a while because of the mortgage.” He said they picked Ipswich for their first investment because it still gave them the option to move there if it ever became necessary. The strategy has done so well for them that they now also have an investment property in NSW.
Your Future Strategy managing director, Gareth Croy, said “rentvesting was not a new trend in places like Sydney, where people had to service massive mortgages to stay in their own home.”
About Your Future Strategy
Your Future Strategy is a multi-disciplinary financial services firm with experts across the financial landscape including qualified professionals in financial planning, strategic accounting, lending, investments, estate planning and superannuation.
As financial strategists, they help create a well-designed pathway for people to tick off financial goals to give them choice in their future, whether that’s saving for children’s schooling and university, building a significant property portfolio, creating and protecting their legacy, or retiring early.