Which makes sense, right?
Our generation should also get a good job and settle down. We should buy the cheapest house on the best street in the same suburb as our parents and we should never eat before swimming. That last one could potentially cause death according to anyone born between 1950-1970… But just because you’ve heard all these things growing up doesn’t mean they are true.
It’s always easy for middle-aged property owners like Bernard Salt to tell our generation what we should have done. But what is the solution? With Sydney’s Ratio of Median Property Price to Median Household Income hovering at 8.50 compared to Brisbane at 5.7 or even Melbourne at 7.10, it’s time to break the mold these middle aged property owners have set before us. Look beyond your own backyard to look at another way of doing this.
Our generation should have the flexibility to change jobs, move cities and travel when we want. There is now a trend towards experience rather than stability, and there’s nothing wrong with that. We should have financial options to invest across different assets. Having ALL of our money invested into our home to balance lifestyle and investment goals should be a thing of the past. We should (and we now know we can) eat smashed avo on toast and then go for a swim. Most importantly, we should be able to live where we want and invest where we can afford.
So what is the solution?
I believe RENTVESTING is the only way Gen Ys can crack into today’s property market. Rentvesting is simply renting one property to live in while you are investing in another. This means you can rent where you want to live and invest where you can afford.
With prices in Sydney having grown over 93% since January 2009, and Melbourne a crazy 76.3% it is becoming more and more apparent our generation isn’t going to live out that ‘classic’ dream our parents have told us of owning our own home in the same suburb as them – but our generation doesn’t think this way. I think our dream is having the choice and flexibility to live where we want. We want the option of packing up in 6 months and changing jobs and moving suburbs. No one wants to be tied down to a 30-year mortgage, living off baked beans and spending holidays at home. We want to travel and enjoy life.
Rentvesting is the new paradigm for our generation. It allows us to enter the market quickly and pay smaller deposits so we can balance our lifestyle and investment goals. The best part about Rentvesting is that you don’t need to sacrifice your lifestyle, it can help improve it. You can live in a beautiful, lavish home closer to the amenity or work. Plus, you can own an investment property interstate or in a location which you can afford which offers a good financial return all the while working towards buying your dream home (if you want) or going on holidays without the burden of having a massive home debt hanging over your head.
- Your mortgage,
- Expenses on the property, and
What a great way to build equity and create a property portfolio for your later years in life! Most importantly, Rentvesting can help you secure a foothold into the property market while maintaining your current lifestyle.
Okay, so what do I need to do?
Owning property will still come with some sacrifices, of course. However, it doesn’t mean you are going to have to cut out your smashed avo on toast (Yes!).
It does, however, mean you need to have an actionable strategy in order to help you become a property owner. If you’re investing in unfamiliar areas, you will need an expert to help distinguish the good from the bad. After all, you want to be a landlord and not a slumlord! Listen in each week to The Rentvesting Podcast for more actionable tips to help you become a landlord, live where you want and buy property where you can afford.