Have Your Smashed Avo and Eat It Too


Tenants Maintain Renter Lifestyle and Entering Non-Metro Property Markets

It seems housing affordability is regularly ‘recycled’ in the news every few months highlighting the peaks and troughs of the property market and interest rates.

A decade ago an article appeared talking about Millennials being the ‘renters’ generation. Too many smashed avo brekkies were seeing these young people not being able to afford to enter the owner-occupier realm.

For many, this is still widely accepted where now they, in their late 20’s and early 30’s have accepted they will never end up owning their own home but instead try and build their saving or superannuation to enjoy a more active lifestyle.

Are Millennials Doomed To Rent Forever?

A finder.com.au survey showed 47 percent of renters would consider renting for life if prices continued to increase and a study by Lendi showed 56 percent of Aussies between 18 and 34 did not believe they would ever own their home outright.

With a large number of millennials living in metropolitan Australian cities, quite rightly, the idea of having a $50,000 deposit seems unachievable. Despite being the generation said to live longer than any before them, the chances of getting a 30-year loan when in your mid to late 40’s is slim.

All of this is based on the age-old narrative of growing up, getting married, buying a home and raising a family.

We now live in the age of disruption where we are challenging the norm, questioning traditions and paving the way for new, innovative and sustainable ways of living.

No longer do we seek Caesar stone benchtops, a rumpus room and well-manicured garden to be the envy of the leaf-lined cul-de-sac.

The Birth of ‘Rentvesting’

‘Rentvesting’ is the new Brangelina. A strategy seeing renters using affordable investment properties outside their desired locale to build wealth.

‘Wealth’ is a term most related to management of existing wealth rather than the creation of wealth for those that do not have it. Research by ME has found that one in 10 first home buyers are choosing to buy as an investor while continuing to rent.

The Untold Secrets of Tax Incentives and Government Rebates

The reason for this appeal is both government incentives being the first home buyer grants as well as tax deductions. Why be an owner-occupier where your property generates no income and has no tax deductions when you can rent according to your lifestyle and have a property working for you as ‘good debt’ rather than ‘bad debt’.

This makes saving up for a deposit more manageable, allows for renters to enter the property market sooner and starts generating wealth for your retirement, something not many millennials are prioritising.

Call Vystal Today For a Free Wealth Consultation

With the correct financial advice from wealth specialists, the amount of additional income required to pay off the investment property can ensure you can still enjoy your smashed avo on toast. Vystal specialises in Wealth creation and also has a competition running whereby if you attend a free Wealth consultation and do decide to invest in a property, they will pay your mortgage interest for the first 12 months of your loan which is a saving of up to $22,500.

What better time for tenants to get both feet into the property market.