For generations, owning your own home has been the cornerstone of the Australian dream. But with rising property prices – especially in Australia’s major cities – and shifting lifestyle priorities, that dream is evolving. More Australians are discovering an alternative path to property ownership without giving up the freedom of renting. It’s called rentvesting, and it’s changing how we think about property and lifestyle.
So, what is rentvesting and how does it work? Let’s unpack everything you need to know.
What is rentvesting?
Rentvesting is simple: you rent where you want to live, while investing in property somewhere else. In practice, this could mean renting in a desirable location close to work, family, or lifestyle amenities, while owning an investment property in a more affordable suburb or regional area.
Instead of compromising on location or stretching yourself with a mortgage you can’t afford, rentvesting gives you both lifestyle flexibility and a foothold in the property market.
Who is rentvesting?
According to Money.com.au’s Mortgage Insights Report, nearly 10,000 first home buyers in 2024 took out loans not to live in, but to rent out as investment properties. That’s a 21.4% rise in rentvesting loans year on year, more than double the growth of standard first home buyer loans.
The trend is strongest among younger Australians, especially in the nation's most expensive states, like NSW, where nearly 1 in 10 first home buyer loans are now used this way. In NSW overall, 9.3% of loans are for rentvesting, while Victoria remains more owner-occupier focused.
For many rentvestors, the typical profile is clear: they’re young, disciplined, and unwilling to give up their lifestyle just to secure an affordable owner occupier home. They can rent near beaches, cafes, or schools, while buying investment properties in more affordable growth corridors.
Why is rentvesting on the rise?
The answer could lie in affordability. With Sydney and Melbourne median house prices now well above $1 million, buying where you want to live is often out of reach for the average Australian. Rentvesting provides one answer to this problem by letting people rent a lifestyle home while still getting onto the property ladder.
At the same time, the rise of remote work, lifestyle-driven choices, and younger generations prioritising experiences over assets has created a new mindset. Rentvesting fits this picture, offering the potential to build equity without compromising lifestyle, allowing them to find a more suitable dwelling that supports their daily habits:
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Younger Australians use it to enter the property market sooner.
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Professionals use it to live near work, beaches, cafes, and social hubs without the mortgage burden.
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Families use it to invest in growth areas while renting near good schools and established communities.
Rentvesting and apartment living
Here’s where rentvesting connects directly with modern apartment living.
For years, one of the biggest drawbacks of renting was the lack of control, unpredictable landlords, short-term leases, and the constant worry that your home might be sold out from under you.
Build to Rent communities like Indi are changing that. They provide the rental stability and consistency that rentvestors need to feel confident about their lifestyle choices. With secure lease tenure – including the option for longer leases – you can confidently put down your roots, while the professional management behind these developments ensures a seamless, reliable experience.
But stability is only part of the story, Build to Rent apartments also elevate the quality of everyday living.
Instead of paying a premium for access to gyms, co-working spaces, or social clubs, residents have these amenities built into their community. This makes it easier to maintain a balanced lifestyle, working productively, staying active, and connecting with neighbours, all within the same building.
For many, this is an attractive balance. Rentvesting gives them the chance to invest for the future, while Build to Rent living provides the comfort, connection, and convenience they want today. It’s a combination that transforms renting from a compromise into a lifestyle choice.
Rentvesting as a modern strategy
The old narrative said you had to buy where you wanted to live, or miss out entirely. Rentvesting rewrites that story.
By renting where you love and investing where you can afford, Australians are finding a way to balance lifestyle in today’s housing market with their financial strategy and long-term goals.
At Indi, we believe renting should be about more than just a roof over your head. With communities designed for flexibility, connection, and wellbeing, we’re here to help you live the life you want, while leaving you with the option to build the future you deserve.
Explore our communities at Indi Sydney, Indi Southbank, and Indi Footscray, and see how renting smarter can be part of your rentvesting journey.
* Disclaimer
This document has been prepared for general information purposes by Indi Management Services Pty Ltd ABN 37 650 857 266, AFS representative number 001301217 (on its own behalf, and on behalf of its related bodies corporate, clients and joint venture partners (if applicable)) (“Indi”)
This document has been prepared without taking account of any particular readers’ financial situation, objectives or needs. Nothing contained in this document constitutes investment, legal, tax or other advice. Accordingly, readers should conduct their own due diligence in relation to any information contained in this document and, before acting on any information in this document. Except as required by law, no representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions, or as to the reasonableness of any assumption, contained in this document. This document may include forward-looking statements, which are not guarantees or predictions of future performance. Any forward-looking statements contained in this document involve known and unknown risks and uncertainties which may cause actual results to differ from those contained in this document.
By reading this document and to the maximum extent permitted by law, the reader releases Indi, its related bodies corporate, clients and joint venture partners, and any of their respective directors, officers, employees, representatives or advisers from any liability (including, without limitation, in respect of direct, indirect or consequential loss or damage whether arising out of negligence or otherwise) arising in relation to any reader relying on anything contained in or omitted from this document.
