How one rentvestor went from zero to three properties in less than five years

When newly-single Stephanie Smith wanted to secure a financial future for herself in 2020, she turned to investing. Now, 5 years later, she’s paying board in one of Brisbane’s outer suburbs, while renting out properties as close to the city as New Farm.

“Even though my income was pretty low, it wasn’t as difficult to buy as it would be now,” she said. “What’s enabled me to keep the properties was being a rentvestor.”

Ms Smith had been saving to buy a home with her then-partner, but found after she was still able to afford a Coorparoo townhouse on her own dime.

Stephanie Smith and her partner Adam Hijazi live in Kenmore, where Ms Smith pays board while she rents out the three homes she owns. Picture: Annette Dew

Buying the property for a little more than $507,000, she began looking into ways to generate funding for her retirement during the Covid pandemic.

“I read the Barefoot Investor book to learn about financial stability as a single woman, and managing finances – from there I read other financial books, and got into property books and property podcasts,” she said.

“We’ve got access to the share market … [but] this appealed to me more so with the greater returns to invest by leveraging, and the property market was moving in 2020-21.”

Reading up on financial advice books, Ms Smith worked to buy her first property, then used her equity to buy another to rent out. Picture: Annette Dew

New data analysis has shown the highest density of investors are out in Brisbane’s suburbs, not in inner-city hotspots.

Soon, Ms Smith was able to buy a unit in New Farm, mere weeks before interest rates started to spike.

“That was the only way I was able to purchase the New Farm unit: equity from the Coorparoo property,” she said. “I think it is difficult for people to buy their first home or start investing now, compared to what it was five years ago … even though interest rates are coming down now, they’re nowhere near they are in 2020.”

Analysis of Australian Taxation Office data from the 2023 financial year has shown Brisbane’s outer suburbs typically have the highest density of investors living in the area, as opposed to inner city suburbs known for high-earning residents.

13 Gem Road, a house for sale in Kenmore. Ms Smith said rentvesting allowed her to build financial security while living out in an area of her choosing.

Property Investors Council of Australia chair, Ben Kingsly, said he found Aussie investors could be found across every class bracket – though there was typically a minimum annual wage where people could be comfortable investing safely.

“In terms of PICA members, they come from all walks of life, with varied income profiles,” he said. “Often, you might have couples investing together where one member has a higher income and the other has, say, a part-time job, which results in a lower income. Overall, if a household’s income is below $130,000 as a single, or below $160,000 as a couple, then it becomes increasingly difficult to borrow to invest in a property that would be considered a sensible long-term investment.”

A unit block in New Farm, one of the suburbs where Ms Smith owns a property. Ms Smith said investing in multiple properties once she had bought the first one.

Mr Kingsly added that while the current balance of owner-occupiers was healthy, it was important for the government to manage this ratio.

“[A 70/30 split] ensures we have an ample supply of rental accommodation to meet the needs of a growing economy,” he said. “If these numbers deviate too far in favour of investment, then the social license and political blowback would be too great. What politician is going to snuff out the idea of the Great Australian Dream?”

Experts have suggested people still keen to get into the investment market should look at opportunities out of local areas, to get homes for a good deal. Picture: Annette Dew

Ms Smith currently lives with her partner Adam in Kenmore, having rented out her townhouse and bought another property in Jindalee.

“If people do want to still invest in real estate, I think it’s still possible,” she said. “As a rentvestor, you can rent where you want to live, and invest anywhere across the country.”

“Personally, I have one friend who also invests in property. She’s a colleague, she’s a young woman and she’s married with a small child. She is like me: another everyday working person, who is looking to build financial security for her family.”

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