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The rise of the ‘rentvestor’

On Sep 01 2013
Tagged as:
  • Residential Property

The Reserve Bank of Australia’s decision to cut the official cash rate to an all-time low of ...

The Reserve Bank of Australia’s decision to cut the official cash rate to an all-time low of 2.5% in August, coupled with a bottoming of property prices in many capitals, has inspired many renters to become purchasers during the popular Spring buying season.

But it may come as a surprise to hear that many of these renters will stay put at their rental properties, and choose to use their newly acquired properties as investments.


LJ Hooker has even given this emerging group its own moniker - the rentvestors. Many investors choose to live in rental properties themselves, for either lifestyle or financial reasons.

For instance, younger buyers often seek out affordable areas in suburban locations for their first foray into property ownership, but choose to live and rent closer to the CBD or their workplace.


Conversely, a family may want to enter the property market and purchase an apartment, but that may not be practical for their living needs.

If you are thinking about taking advantage of the current, unprecedented economic conditions to become a landlord yourself, consider the below tips.

• Commit to a strategy

Your reason for purchasing an investment property will influence the type of property you buy. Are you looking for solid capital growth or good rental returns?

• Research, research, then research some more

As we all know, purchasing a property is never a decision that should be made on a whim. Spend time looking around the area you are interested in and familiarising yourself with prices of properties in your product range. Armed with this knowledge, get in touch with your local LJ Hooker office where respected professional real estate agents have sound local market knowledge and can assist you with your purchase.

• What will your tenants look for?

Tenants are interested in both the living amenities a property offers and its proximity to services and infrastructure. Keep in mind that you won’t be living in your investment property: you are not purchasing it to suit your tastes or living requirements, it is about finding a product which can be tenanted at an amount which comfortably meets your repayments. Consider opportunities in suburbs and towns with a vibrant entertainment sector, employment opportunities, good transport. A selection of schools and open space generally provide good opportunities for capital growth.

• Find tenants that will treat your home like it’s theirs

Qualified property managers deal with tenants every day and are experts in finding tenants who are responsible, reliable and conscientious – just like you! It’s also important to engage a professional property manager who is an expert in the Rental Tenancies Act, and knows the responsibilities of each party involved in a rental agreement.


• Secure the right finance

While interest-only products tend to suit a lot of investment situations, consider the range of options available and secure independent advice before taking on any finance. LJ Hooker Home Loans has a wide range of finance opportunities that could suit your specific needs. 

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