If you are a Millennial or Gen X and you AREN’T rentvesting, then you MUST read this newsletter RIGHT NOW!

If you listen or, heaven forbid, believe the mass media out there, then these two generations of people are the most disadvantaged in society.

I’m talking directly to you Millennials and Gen Xs out there.

Because if the media are correct, it is you who are being left well behind when it comes to property and real estate in general.

You’ll never be able to emulate your parents. Your dream of homeownership is now so distant as to be basically unobtainable.

You’re much better off spending what little savings you have on faraway holidays and adventures.

Maybe some of you feel this way, even agree with it?

Well, I’ve got some news for you then. That ‘may’ have been true once.

It isn’t true anymore. The global media owe you all a huge apology. Millennials and Gen Xs of this world have found a way around it.

And in turn they are driving a huge change in the world of property investing. In fact, it’s so big that all of Australia’s big banks have sat up and taken notice.

And it isn’t just Australia either.

So, how are they doing it? More importantly, how can you partake in becoming the richest generation on earth?

Sit down, get comfortable, because you are about to find out precisely that.

It turns out that in Australia, the most active new property investors are in fact Millennials!

Take the following report from Australia’s largest mortgage provider, the Commonwealth Bank of Australia (CBA).

Here is an excerpt from the CBA report (bolded text is my own):

According to the data, 46 per cent of the bank’s new property investors in 2023 were made up of millennials (born 1981 – 1996), and almost one in three of those buyers purchased an investment property on their own, without the help of a partner. Then followed by Gen X (born 1965 – 1980) who accounted for 37 per cent of all new investment property purchases throughout the calendar year.

If you will, millennials and Gen X are the next great movement in real estate.

Look at the impact they are having. Just under 50% of CBA’s new property investors are made up of both groups. Making 37% of all new investment property purchases in 2023. And according to the Australian Bureau of Statistics (ABS), this trend is increasing too.

According to an April 8th ABS press release; investor loans rose in February 2024 by 1.2%.

The total value of new housing loans to investors rose 1.2 per cent in February 2024, according to data released today by the Australian Bureau of Statistics (ABS).

Mish Tan, ABS head of finance statistics, said: “The value of new investor loans in February was 21.5 per cent higher compared to a year ago. This made up over half of the growth in total new loan commitments over the past year.”

This is a trend that’s accelerating since 2023.  Owner occupied loans rose 9% higher since last year and owner-occupied first-time buyers also rose 4% and are 13% higher than this time last year.

Do note however the seismic change afoot here. It isn’t the older more traditional cohort who are accelerating investor loan lending, instead it’s their children or grandchildren even.

They are almost 50% of new investor loan applicants and the amount of investor loans written now are 21% higher than last year. You are looking at the new investor class in Australia.

These are the facts, yet how was this reported at the same time?

Do these facts speak of an inequality across generations? Or are they instead taking charge of their own financial future rather than becoming rabbits caught in the glare of car headlights?

With February’s national vacancy rate as reported by Domain now sitting at 0.7%, a new and powerful movement has developed.

You now know who is behind most of it, now discover what their strategy is.

That’s right, the movement I speak is not one of simply sitting on one’s hands, hoping and praying for cheaper prices at some pre-determined time in the future.

Oh no, these folk are acting to get in sooner.

As all previously completed 18.6-year Real Estate Cycles have proven, there comes a time during the second more speculative phase of each cycle where the attitude changes.

A realization that, by getting in now, they can not only avoid higher prices in the future but benefit from the same rises themselves.

Rather than hoping somehow that prices will fall.

Again, CBA have been able to dive into their own data to determine the true trends at play.

Let’s look again at that April 2024 data dump from them.

“Interestingly, what we continue to see from many Aussies is the inclination to ‘rentvest,’ buying property where they can afford and then renting where they wish to live,” Dr Baumann said, Commonwealth Bank’s Executive General Manager of Home Buying.

“Rentvesting gives Australians the chance to get their foot on the property ladder sooner rather than later and purchase a property in a lower cost area without having to give up the lifestyle they have become accustomed to when renting.”

It’s definitely a winning formula.

Not only does this speak to a change of attitude and flexibility to circumstances, but there’s a fair degree of fiduciary understanding here too.

Nationally, the average age of property investors was 43 years, and the average loan size was just over $500,000.

The latest lending indicators from the Australian Bureau of Statistics (ABS) show that the average mortgage size (for owner-occupier dwellings) was $624,000 in December 2023.

This tells me the trend of rentvesting of buying in affordable areas whilst living wherever you want is correct. Then add in the rental income these investors can receive these days to assist with mortgage repayments.

Even more important though, there’s something everyone has apparently missed completely here.

Market conditions on the ground today look very compelling for new and established property investors.

As stated, rental vacancy rates are now at historical lows, listings now increasing in most cities, with state capital averaging an 11% increase in annual rent rises. There is talk of possible rate cuts later this year, providing those who buy now a chance of capturing any gains.

Folks, this is the real estate cycle.

And for over 200 years of history, its repeatable actions can be summed up thus.

The cycle always finds a way to turn, and to turn on time. Your eyes are painted on your head if you cannot see here yet another example of this truth.

So, if you are a millennial or a Gen X, what are you waiting for?

If the answer is “I don’t know where, or how, to start?”, then that’s no longer a concern. You sign up to become our latest Boom Bust Bulletin (BBB) member.

Let me teach you the history of the 18.6-year Real Estate Cycle, the inherent economic timing such study can give you. By understanding the land market via our research, you place yourself ahead of 99% of participants.

Because you’ll have learnt the timing of the market. An incredible advantage.

So, what’s it to be? Inaction and paralysis when it come to your biggest financial decisions, like the media want you to believe.

Or confidence and surety about when to take such decisions, knowing you are investing with the trend of the cycle, and not against it?

Things in this space are moving fast now. Your window to buy is now open, and if you know where to look, potentially becoming easier too.

CBA don’t just release this data cause it’s cool, they mine it for their own purposes too.

For those looking to share their property costs with someone else, Dr Baumann said the bank has a loan product called ‘Property Share’ that allows them to split the cost of buying a home with family and friends, while retaining individual control of their finances.

They already know the age group they shall target with this product too. Do I really need to tell you?

More lending, more speculation, right up to the eventual land market peak.

When is that peak, and what happens after?

I happen to know a cohort of members with that answer!

Sign up now.