The latest "property dream” idea involves never living in the home you buy.
A survey by State Custodians Home Loans has found almost three-quarters of people (74%) now believe "rentvesting” is a good strategy for those struggling to enter the property market.
Rentvesting is a term that has been coined for those who choose to continue renting in a place they enjoy to live, but otherwise couldn't afford to buy in. Instead they buy an investment property to build equity and get a foot on the property ladder.
The survey found a third of people are in favour of rentvesting, and 29% say it's a good way of providing investors with dual income streams - one from tenants and the other from tax benefits.
Gen Y were particular open to the idea of continuing to rent while investing, with 29% saying it's virtually impossible to obtain property through other means and almost one in three said it would be cheaper to rentvest than shouldering an owner-occupier mortgage, which leaves them with limited disposable income.
State Custodian General Manager Joanna Pretty said lifestyle has become a major driver for young people when it comes to their property choices.
The survey also found 26% of Gen Y respondents feel it's more desirable to live in better-quality rental homes than in worse-quality mortgaged homes, only 19% of Baby Boomers feel the same way.
Ms Pretty said the attitude change show how much Australian society has changed.
"However, young people are now settling down later in life and choosing to - or forced to - rent for longer periods in order to save up enough money for an initial deposit. Or else they're taking their time to consider their next move and focusing on other things like their career or travel, so they're entering the market later.”
