Young Buyers Invest While Living with Parents

An increasing number of young Australians are purchasing investment properties while continuing to live with their parents. This approach helps them build wealth without taking on the high costs of living independently, though it can come with financial risks if not carefully managed.

With the housing market becoming tougher and interest rates rising, Millennials and Gen Z are adopting a strategy known as “stayvesting.” This involves staying in their childhood homes while buying properties to rent out. Rental income is used to cover loan repayments, allowing them to save and enter the property market earlier without the financial burden of moving out on their own.

Affordability is a major factor driving this shift. High deposits and monthly mortgage costs have made it difficult for many young people to buy homes to live in. Instead, some are choosing to buy multiple investment properties, often off the plan or in other states, while continuing to live with supportive families. It is becoming more common to find young investors who own two or three homes while still living with their parents.

For many stayvestors, property investment offers more than financial returns. It also provides a pathway to independence while maintaining stability. By earning rental income and building equity early, these investors are laying the groundwork for purchasing a home for themselves or pursuing lifestyle upgrades in the future. Still, they need to plan for setbacks like vacancies, market downturns and maintenance issues that could affect cash flow.

Real estate experts are noting the rise of this trend. Agencies report more young buyers entering the market with guidance and encouragement from their parents. Lower-cost locations such as Perth and regional areas are often selected because of their affordability and potential for growth, which makes investing across state borders an appealing option.

The stayvestor approach appears to be a practical response to today's difficult housing environment. If current conditions persist, more young Australians may choose to stay with family while advancing on the property ladder. The challenge will be finding the right balance between short-term savings and long-term financial security.

Source: Australian Financial Review, SBS News, Australian Property Update, Investor Property Kit