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New Investment Approach for Australian New Homebuyers

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Recent statistics have highlighted a notable shift in the strategies Australian first-time homebuyers are using to infiltrate the challenging property market.

Analysis of 2023's purchasing trends indicates an emerging investor mentality among new buyers.

According to the latest insights from the Lendi home loan network, 20% of first-time property acquisitions were made with a clear investment intention, renting out newly bought homes instead of occupying them. This phenomenon, known as 'rentvesting,' exhibits the increasing financial savvy of new entrants to the housing market.

Mortgage experts confirm that a significant portion of these buyers are prioritising their current way of life, opting to reside with family or lease in preferred locales while investing in more affordable areas. This strategy has particularly taken hold in Queensland, which reported a sharp increase in first home buys at the commencement of this year, likely boosted by recent government incentives.

The prevalence of rentvesting was uneven across the states, with New South Wales leading at 30%, Queensland at 26%, and Victoria close behind at 20%. The trend was less common in Western Australia and South Australia, registering only 10 and 7 percent, respectively. Intriguingly, the start of 2024 saw Queensland sprint ahead as 45% of all property deals in January were first home purchases.

The noticeable upswing in Queensland comes on the heels of the state government's decision to increase First Home Buyer grants to $30,000. This drawcard may well have accelerated the 'rentvestment' strategy as a feasible option for many Young Australians.

Exploring further nuances, Lendi's research uncovered that some first home buyers are pooling resources, with at least six percent of acquisitions involving three or more loan applicants, aimed at mitigating financial stress.

Financial creativity did not stop at group purchasing; there's also been a doubling in guarantor loans, where the backing, typically from family members, provides the requisite security for loan approval. With the aid of a guarantor, deposits averaged considerably lower, at around $38,000, demonstrating an alternative pathway into homeownership.

This report paints an evolving picture of a generation of Australians determined to carve their heritage in real estate through more inventive avenues, reflecting a growing adaptability in response to a transforming market landscape.

Published:Monday, 25th Mar 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Finance News

APRA's New Cap on High Debt-to-Income Home Loans Explained

11 Apr 2026: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has implemented a significant policy change aimed at mitigating risks in the housing market. Effective from 1 February 2026, APRA has introduced a cap limiting banks to issuing no more than 20% of new home loans to borrowers with a debt-to-income (DTI) ratio exceeding six times their income. This measure applies separately to owner-occupier and investor loans, reflecting APRA's commitment to maintaining financial stability. - read more

Regulators Intensify Oversight of Non-Bank Lenders Amid Sector Growth

11 Apr 2026: Paige Estritori

The Australian Securities and Investments Commission (ASIC) and the Reserve Bank of Australia (RBA) have heightened their scrutiny of non-bank lenders, a sector experiencing significant growth in recent years. This increased oversight aims to ensure that the expansion of non-bank lending does not compromise the stability of the broader financial system. - read more

RBA's Latest Rate Hike: What It Means for Your Finances

03 Apr 2026: Paige Estritori

The Reserve Bank of Australia (RBA) has raised the cash rate to 4.10%, marking a significant move aimed at curbing persistent inflationary pressures. This decision is expected to have widespread implications for Australian borrowers, particularly those with variable-rate mortgages. - read more

Navigating the Upcoming 4.41% Increase in Health Insurance Premiums

03 Apr 2026: Paige Estritori

Starting April 2026, Australians will experience a 4.41% average increase in health insurance premiums, the highest government-approved hike since 2017. This rise adds to the financial pressures many households are already facing. - read more

Understanding Australia's $21.7 Billion Credit Card Debt in 2026

03 Apr 2026: Paige Estritori

As of January 2026, Australians hold a total of 12,227,388 credit cards, with a national debt accruing interest amounting to $21.7 billion. This substantial figure underscores the growing reliance on credit and the potential financial stress associated with it. - read more

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