Australia’s housing market is a bit like the wild west right now, with property investors swooping in like bandits looking for rental income and portfolio growth. For those of us trying to buy our first home, these investors are making it harder to get a foot on the property ladder.

Here’s the scoop: investors now make up a whopping 31% of new mortgage originations. That’s a big chunk of the pie, and it’s growing. With home prices hitting new record highs, real estate is looking pretty juicy for those with the cash to spare​ (Australia’s Money Matchmaker®)​​ (CoreLogic Australia)​.

The Bright Side of Rentvesting

But here’s the silver lining – rentvesting. What’s rentvesting, you ask? It’s when you rent where you want to live and buy where you can afford. It’s like having your cake and eating it too. You get to live in a cool area without the mortgage stress and invest in properties that won’t break the bank. But, done poorly, it can have it’s own drawbacks.

Why Rentvesting Rocks

1. Spread the Risk: Investing in different areas means you’re not putting all your eggs in one basket. If one market dips, you’ve got others that might be doing well.
2. Cash Flow Like a Boss: By living in a rental and owning rental properties, you can balance your budget and maybe even pocket some extra cash.
3. Live Where You Love: Rent in the trendy parts of town where buying is out of reach, but still get on the property ladder by owning investment properties elsewhere.

Tackling the Housing Crunch

We all know the housing market feels like a squeeze right now, but there are ways to ease the pressure:

1. Build Smart: More homes are needed, but not just any homes. We need affordable and social housing to make sure everyone has a place to call home​ (Australia’s Money Matchmaker®)​.
2. Fix the Tax Stuff: Those fancy tax breaks for investors? They need a rethink. Levelling the playing field could help first-time buyers get a fair shot​ (CoreLogic Australia)​.
3. Help Where It Hurts: Cutting down stamp duty and boosting rental subsidies can give immediate relief to folks struggling to save up for a deposit or keep up with rent​ (Australian Bureau of Statistics)​.

Wrapping It Up

The housing market is a bit of a beast right now, but rentvesting is a savvy way to tame it. By renting where you want to live and investing where you can afford, you can still make your property dreams come true. With some smart policies and a bit of luck, the great Australian dream of owning a home can be within reach for more of us. So, don’t give up just yet—there’s always a way to make things work in this ever-changing market.