Rentvesting gains Ttraction among Sydney first home buyers
A small but persistent share of Sydney first home buyers are considering a rentvesting strategy as affordability pressures reshape entry pathways, according to PropTrack.
Over the 12 months to January 2026, around 7% of first home buyers searching in Greater Sydney also signalled they were open to purchasing for investment. Nationally, the share was 5.5%, while Melbourne recorded a lower 3.7%.
REA Group senior economist Eleanor Creagh said the higher share in Sydney reflected the realities of a high-cost market.“In high-cost cities, deposit hurdles are larger and price-to-income ratios tend to be higher.”
Rather than purchasing the home they intend to live in, some buyers are considering acquiring a more affordable property – potentially in a different suburb, region or market – while continuing to rent in their preferred location.
The search trends align with Australian Bureau of Statistics lending data, which shows 5.4% of first home buyer loan commitments nationally were classified as investor purpose in the 12 months to December 2025.
While still a minority strategy, the data suggests this approach is an established secondary pathway for some first home buyers navigating affordability pressures in the Sydney property market.
About the author – Alex Veljancevski is a Sydney Mortgage Broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking to refinance to a better deal on their home loan.