Unconventional ways to get into the property market
Written and accurate as at: Sep 15, 2025 Current Stats & Facts
For many young Australians, sky high property prices and rising costs of living have made home ownership seem like a distant dream. But there are alternative pathways to property ownership that are gaining in popularity.
Call them workarounds, or maybe just savvy ways to scale what are becoming increasingly high barriers. Either way, they offer younger buyers a fighting chance at entering the market.
Rentvesting
Inner city suburbs, with their vibrancy and proximity to major employment hubs, are among the most sought after locations for home buyers. But that popularity often means affordable entry points are few and far between.
To get around this problem, a growing number of Australians are choosing to rentvest. This involves continuing to rent in your preferred area while buying an investment property in a location that’s more affordable to you.
Of course, going down this path means juggling two sets of responsibilities – those of a tenant and landlord – as well as missing out on the grants and concessions that are only available to owner occupiers (such as the First Home Owner Grant).
But if you don’t mind some extra work, rentvesting can be a worthwhile way to get a foot on the property ladder without necessarily sacrificing the inner city lifestyle you’re used to.
Stayvesting
This is similar to rentvesting, in that you’re buying an investment property and choosing to live elsewhere. The only difference is the home you're living in is your family’s.
This will hopefully be cheaper, as while your folks might ask you to chip in they probably won’t expect you to pay market rate. The money you save on rent can then be put towards your investment property, whether that’s paying extra on your mortgage, covering maintenance costs, or building up a buffer in case of vacancies or surprise expenses.
Using a guarantor
There are other ways family members can help, like acting as a guarantor. This is where a family member, typically a parent, offers up the equity in their home as security for part of your loan.
Of course, your guarantor will be taking on a lot of risk here. They’ll be liable for the loan if you can’t keep up with your repayments. And if they can't stump up the cash, your lender might wind up repossessing their home.
It’s a big ask and there are countless ways it could jeopardise your relationship if things go wrong, so everyone will need to be confident in your ability to pay the loan and clear on what their obligations are well in advance. Before making any decisions, all parties should seek out financial and legal advice.
Co-buying with friends or siblings
If you don’t have a partner and can’t afford to take out a loan by yourself, there’s no rule against buying property with your siblings or friends.
Being able to pool your resources with others will make it easier to save up a deposit, and your ongoing mortgage repayments will be more manageable if the cost is spread out. But going down this path also means there are more opportunities for things to go pear-shaped.
For example, do you have a plan in case one party falls behind on repayments, or wants to sell against the others’ wishes? The ownership structure you decide on – that is, whether you and your co-owners will be classified as joint tenants or tenants in common – will also be fairly consequential.
If you’re considering one of these options, make sure you’ve had a financial adviser or legal professional explain all the possible implications before you sign the dotted line.
