subscribe to our newsletter

‘Rentvesting’ stressful for home owners, study finds

A recent study has revealed that “rentvesting” is a stressful way of living for home owners, despite it being marketed as the best of two worlds.

A survey of more than 700 home owners in Australia has found that “rentvesting” — buying an investment property while continuing to rent — is the most stressful situation for home owners, with 56 per cent of rentvestors giving it a stress rating of six out of 10 or higher.

The study, conducted by mortgage marketplace HashChing, also found that 49 per cent of rentvestors are contemplating refinancing their mortgages in the coming six to 12 months.

HashChing CEO Mandeep Sodhi attributed much of the stress to rentvestors underestimating the costs and responsibilities of being a landlord.

“There’s a lot more involved than just making sure your rent and mortgage is paid off every month. As a landlord, you need to factor in many additional and ongoing costs, from renovations, repairs and maintenance through to strata fees, land tax, landlord insurance and property manager fees,” Mr Sodhi said.



“If the existing tenant leaves, you’ll also need to shoulder the entire mortgage payment — in addition to the rent you’re already paying — until you find a new tenant. And that can sometimes take a few months.”

A State Custodian Home Loans study of more than 1,000 Australians conducted last year found that 74 per cent consider rentvesting a good strategy to get into the property market, with nearly a third of Gen Y respondents expressing their belief that rentvesting is cheaper than having an owner-occupier loan as it would allow them to have more disposable income.

More than a quarter of the respondents, or 26 per cent, of the State Custodian survey said that rentvesting enables buyers to live in a “high-quality” rental home, which would be out of their price range to buy, while still bringing in an income from elsewhere.

HashChing’s Mr Sodhi noted the importance of consulting a mortgage broker before becoming a rentvestor, saying that “it’s not a path for everyone” and requires expert analysis of a prospective borrower’s financial situation.

[Related: Half of Aussies prepared to miss out on dream location]

‘Rentvesting’ stressful for home owners, study finds


If you have any news, ideas or enquiries for Mortgage Business - please contact This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The major bank has reached a settlement with AUSTRAC to pay a record $1.3 billion penalty for over 23 million breaches of anti-money launder...

A mutual lender has signed a deal with a fintech lender to provide them with an initial $300 million in home loan funding. ...

A spike in credit provisions and COVID-related charges has triggered a 16 per cent fall in Heritage Bank’s earnings, offset by asset and d...


LATEST PODCAST: How lenders are viewing the property price outlook

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.