You can’t buy your dream home, but you can rent it (and invest somewhere else)

Explore how to get into the property market sooner without giving up your lifestyle.

What's the key learning?

4 major Aussie cities are now considered “impossibly unaffordable” to buy property in
Rentvesting is a strategy where people rent in the area they like, and buy in a high-growth area they can afford
Who is rentvesting suitable for?
What are the perks of rentvesting, and the catches you need to be mindful of?

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It’s not just you, buying a home in Australia today is objectively harder than 50 years ago (despite what your parents might say).

In a 2025 global property study, four of our major cities (Sydney, Melbourne, Brisbane and Adelaide) were declared “impossibly unaffordable”. They all ranked in the top 20 of least affordable places to buy out of 95 major property markets around the world.

*Not the kinda list we wanted to feature on…*

Basically, we're living in the real estate version of the Hunger Games, and the odds are not in our favour. But it’s about to get even spicier because experts predict Aussie house prices are going to rise another 5-6% in 2025 alone.

Which means, if you’re trying to save for a 20% deposit, the finish line keeps moving and your property buying dreams remain out of reach even if you’re doing all the right things on paper. 🥲

That’s why more and more young Aussies are ditching the idea of traditional home-ownership and choosing to rentvest instead. Rentvesting is a strategy that helps get you into the property market sooner, without needing to give up your lifestyle.

‍Sounds magical… what exactly is this rentvesting you speak of?

Rentvesting is when you rent somewhere you want to live (but can’t afford to buy) and you purchase somewhere you can afford to buy (but you don’t want to live).

Rentvestors rent out their investment property to help offset their mortgage. The idea is that you buy in a location that may not be suitable for you right now, but has high growth opportunities.

Who is rentvesting for?

⭐ Young professionals in expensive cities

⭐ First time buyers with limited budgets

⭐ People who prioritise location flexibility but still want to get their foot in the property market

⭐ Savvy investors

The perks:

✅ You enter the property market sooner

✅ You get to keep your current lifestyle

✅ You may see capital growth and be able to claim tax benefits

✅ With LMI, you might be able to borrow more and buy sooner

The catches:

❌ You’re still a property owner (which comes with ongoing maintenances and bills)

❌ Rental income isn’t guaranteed

❌ There are tax and capital gains tax (CGT) considerations

❌ You miss out on first home buyer incentives designed for owner-occupiers

Rentvesting can be a smart way to start building wealth without giving up the things you value (like location, freedom, and avocado toast). But like any big money move, there’s no one-size-fits-all approach.

That’s why Flux has launched this month’s Academy where we explain how rentvesting works as well as how it can be used alongside Lenders Mortgage Insurance (LMI) to get into the property market with less than a 20% deposit.

Cos the more you understand your options, the more confident you’ll feel when talking to mortgage brokers, lenders, or even just your parents about your property goals! 🏠🤩

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