According to research, Millennials are struggling to purchase their first home, let alone investment properties. Apparently, 68 percent of Boomers (aged 58-76) owned their own home by age 30-34 compared with just 50 percent of Millennials (aged 21-41) in the same age bracket. This is why rentvesting is becoming such a strong trend. These are the top markets to rentvest for 2022.
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Why is there such a decline in the property purchases for Millennials?Â
Underemployment is an issue in Australia, especially among younger Australians. This is due to the fact that many young people are locked into casual jobs, which makes saving for a deposit on a home difficult because they don’t earn much in their part-time or casual job. Rising rent prices also make it hard for a person to save money because that usually takes up most of their income.
After years of stagnant wage growth amidst local and global economic recession, economists had been predicting wages would rise by more than two percent during 2022. But while inflation is moving upwards globally and locally, Omicron threatens to stifle any increase to pay brackets.
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This is why many Millennials have turned to rentvesting.Â
Rentvesting is when you rent your primary residence, but you also choose to invest in other properties to build wealth. Rentvesting allows you to rent a place to live in that’s right for your lifestyle, while you own an investment property that’s better for your budget.
It’s a strategy that has been growing with Millennials in Australia (and the USA) over the past couple of years. It’s helping Millennials get into property investment faster.Â
In the past, the general thought regarding property investment was that you obtained the Australian white picket fence dream home before purchasing additional properties as investments.Â
However, in today’s property climate, property values are rapidly outpacing wage growth; this means that every year, those in the market to buy a house have less money available and the prices continue to rise. In the past decade alone, housing prices went up 33% compared with 14% for household incomes, so now you need many more years of saving before you will be able to buy your own house.
Therefore, rentvesting is a strategy that can help people get out of the rat race of being renters their entire life.
As with everything in life, there are pros and cons. We discussed the pros and cons of rentvesting in other articles.Â
Where to Rentvest
SEQ is one of our top markets to rentvest due to its affordability and strong rental yields. With the upcoming Olympics in Brisbane, sizeable growth is expected in the region over the years to come. Regardless of age, these are some of the top markets to rentvest that are affordable and up-and-coming growth areas.
- Ipswitch Redbank Plains
- Median house price — $389,750
- Rental vacancy rate —1.62 per cent
- Morayfield (North Brisbane)
- Median house price — $460,000
- Rental vacancy rate — 1.15 per cent
- Barhs Scrub (Logan City)
- Median house price — $499,000
- Rental vacancy rate — 3 per cent
- Logan Central
- Median house price — $361,000
- Rental vacancy rate — 1.91 per cent
- Bellbird Park
- Median house price — $497,500
- Rental vacancy rate — 1.33 per cent
Are you looking to invest? We know that there’s more to choosing an investment property than affordability and location. So, if you’d like assistance finding and determining a investment property that’s right for you, we can help!
If you are considering purchasing an investment property, now is the time to buy. Why? Because loan interest rates are still low—less than 2%. When the interest rates begin to climb, it will cost you tens of thousands if not hundreds of thousands of dollars more. When purchasing a property, it’s important to have someone with the knowledge you need to make the right decision. That’s where we can help!
We Can Help
Ready to start creating passive income with property or learn more about the top markets to rentvest? Think you’re ready to invest in one or more properties?
We can help! At OneCorp, we walk you through every step of the process at NO cost to you. We create a personalized property strategy and help you find the best opportunities on the market so you know you’re getting the best return.
Getting started on your investment property journey has never been easier:
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- We start by helping you set clear goals and objectives as to what you want to achieve through property investment.
- From there, we run the numbers through proprietary software to accurately assess exactly what you need out of a property portfolio to achieve those goals.
- Lastly, we find the perfect property to make those objectives a reality!
