Media releases
‘Rent-vesting’ on the rise as more Australians look to buy in 2025
13 February 2025
Westpac research has found more than half (54%) of first home buyers are considering ‘rent-vesting’ to get into the property market – up 4 per cent from this time last year.
The ‘rent-vesting’ concept involves buying in a growth market or more affordable area, while renting where you want to live, with the intent to build equity that can be put towards buying your own home in the future.
Westpac’s annual Home Ownership Report shows NSW leads the way as the rent-vesting capital of Australia, with 61 per cent considering rent-vesting in the state, followed by Victoria at 54 per cent, and Queensland at 52 per cent.
Westpac’s research also found many aspiring homeowners are looking to buy sooner. This time last year, only 10 per cent of Australians were looking to have purchased a new home to live in by the end of the year. In 2025, the share is 13 per cent.
“More Australians are entering 2025 planning to purchase a property than last year, reflecting renewed optimism from aspiring home buyers. We’re continuing to see strong demand from customers seeking pre-approval for home purchases across both the owner occupier and investor segments,” said Damien MacRae, Westpac Managing Director Mortgages.
“At the same time, rent-vesting is growing in popularity as more buyers look to get their foot on the property ladder sooner, particularly in capital cities where housing prices are typically higher.
“Our research shows that 82 per cent of Australians would be open to purchasing in an area they hadn’t originally considered, as buyers adjust their expectations in response to the market,” he said.
Westpac's Senior Economist Matthew Hassan said potential rate moves were a big motivator for would-be buyers in 2025.
“Interest rates are almost certainly having an influence here. Last year high rates deterred buyers, but the possibility rates will move lower appears to be shaping would-be buyer plans. For rent-vestors the potential rate moves bode well for increased buying power.”
Top tips for aspiring rent-vestors
Have clearly defined investment objectives: Clearly outline the ultimate aim of this purchase – including timelines for selling, upgrading, or leveraging equity.
Location, location: In addition to capital growth, consider areas where rental yields are robust. Investigate what type/s of properties are in demand in your target area/s.
Consider product options: There are many different home loan types, including options specifically for investors. Westpac has a dedicated website for property investors, with handy tips and guides to help rent-vestors on their way.
Westpac has several calculators available to help buyers better understand their borrowing power and estimated repayments, as well as any upfront costs like stamp duty, or lender’s mortgage insurance. More information is available via the Westpac website.
About the 2025 Westpac Home Ownership Report
The research was commissioned by Westpac and conducted by Lonergan Research in accordance with the ISO 20252 standard. Lonergan Research surveyed 2,000 Australians aged 18+ with surveys distributed throughout Australia including both capital city and non-capital city areas. The survey was conducted online amongst members of a permission-based panel, between 17th December 2024 and 2nd January 2025. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.
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