Evolution of Investment Strategies: How Millennials Approach Real Estate

Three quarters of millenials in Australia think they will have enough money for retirement, while less than two-thirds of baby boomers do. The younger generation is clearly doing something right with their money, despite their ‘penchant’ for smashed avo and the unaffordable property market they’re buying into.

With that in mind, let’s take a closer look at the creative strategies millennials are using to get ahead using property investment. Could they work for you?


In Sydney, a 20% deposit on the average home is close to $200,000 and in Melbourne it’s over $140,000. In markets like these, living in your own home isn’t necessarily the best way forward. In fact, 4 out of 10 Aussies believe that renting where you want to live and owning an investment property somewhere more affordable is a far better option, according to a recent Westpac report.

This strategy, otherwise known as rentvestment, has a number of benefits. For one, it allows you to live in a better location where you can afford to rent, but wouldn’t necessarily be able to afford to buy. It also enables you to buy wherever you want, so you can feel free to pick an affordable and fast growing area anywhere in Australia. Last of all, rentvestment allows you to grow your wealth through rental income and capital gains without having a massive mortgage on your back.


Millennials are becoming property investors with as little as $100 through managed property funds or syndicates, otherwise known as fractional investments. By making a contribution, you gain an interest in a managed portfolio of commercial and/or residential property and receive distribution income throughout the life of your investment.

If the fund winds down or you sell your share, you may also receive capital gains. This is a fantastic way to invest in property without putting your life savings toward a deposit or taking the time to buy and manage property yourself.


Australians are upgraders. We buy our first home then usually move on within a few years to something bigger and somewhere better. Millennial buyers are particularly flighty, and often buy their first home with a view to using it as a stepping-stone property investment when they eventually upgrade. This means you may have to save a second deposit from scratch, but it may also be an effective way to build wealth faster and retire sooner – and more comfortably.

Whether you’re struggling to get on the property ladder or start building wealth for the future, a little bit of creativity goes a long way (particularly in this challenging market). How are you making your property goals happen?