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In 2013, LJ Hooker identified a rapidly emerging trend in the real
estate market; the rise of the rentvestor. rentvestors have always
been a part of the Australian property markets; however, strong
capital city price growth, a more mobile and transient workforce
and the preference of younger buyers for lifestyle over location,
have all combined to make rentvestors a driving force in today’s
marketplace.
A recent survey undertaken by LJ Hooker has identified that
rentvesting has grown to encompass a broader geographic and
demographic make–up. Our latest research shows that there
are now two clear types of rentvestor:
1. Those driven by lifestyle choices and affordability
constraints.
2. Those driven by work, study or other personal
circumstances.
Our latest rentvestor survey also highlighted some key points
about who rentvestors are and what drives their choices.
Age
Contrary to common perceptions that rentvestors are young
professionals or university students, our survey found that a
diverse age group rentvest.
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56% of rentvestors are aged between 35 and 55 years.
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The largest single age bracket was the 45 to 54 year age
group, making up 29% of respondents.
Income
Rentvestors have a diverse range of incomes.
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38% have a household income less than $100,000
per annum.
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32% have a household income of between $100,000
and $149,999 while a further 30% have a household income
of more than $150,000.
Investment property type
Rentvestors prefer to invest in existing properties.
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61% existing houses
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24% existing apartments or townhouses
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9% new house and land package
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6% new apartments or townhouses
Investment property location
Affordability is the main driver of where rentvestors choose
to invest.
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6% within 5km of where they rent
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22% within 5–20km of where they rent
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28% in a different state to where they rent
Looking forward
Rentvesting has fast become a common part of the Australian
real estate market. Looking forward there are a number of
factors which should see rentvesting remain popular, including:
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Increased rental vacancies and soft rental growth will make
renting more attractive.
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Inner–city affordability constraints will continue to see first
home buyers become rentvestors.
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The increasing mobility of our workforce will see rentvestor
numbers rise.
The evolution of the Rentvestor
™
A rentvestor is defined as
someone who is a tenant in a
rented property but who is also a
landlord of a property that they
own and rent out.
0
5
10
15
20
25
30
35
Household income profile of rentvestors
Less than
$49,999
$50,000 to
$74,999
$75,000 to
$99,999
$100,000 to
$149,999
$150,000 to
$199,999
$200,000
or more
Source: LJ Hooker Research
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