Lendi data reveals major renting reason one in five first home buyers purchased new property over 2023

A surprising portrait has emerged of Australia’s first home buyers as it’s revealed one in five buying in 2023 had a specific purpose for their purchase.

One in five of first home buyers bought their first properties last year for the sole purpose of renting it out, with one state dominating the market for the first month of the new year.

New data from home loan and broker network Lendi has revealed the new trends of how first home buyers are attempting to beat the odds of getting into the property market, following what the network has called a “tough slog” over the past 12 months.

Aussie Home Loans mortgage broker Kim Horan said many young buyers wanted to maintain their lifestyle while attempting to look “long term” with their property plans.

New data from broker network Lendi has revealed one in five first home buyers bought their first properties in 2023 for the sole purpose of renting it out, with Queensland now outperforming other states for all new first home purchases early this year. Picture: NCA NewsWire / Max Mason-Hubers

“Many are buying homes in areas they can afford and renting out the home while they either stay at home with parents or rent in areas that suit their current lifestyle,” she said.

According to Lendi’s data, 20 per cent of first home buyers in 2023 were “rentvesters” — people purchasing property for the sole purpose of renting it out.

NSW topped the list with 30 per cent of buyers rentvesting, followed by Queensland at 26 per cent and Victoria at 20 per cent.

Western Australia and South Australia had the lowest numbers at 10 and seven per cent respectively.

NSW topped the list for the number of “renvesters” — people purchasing property for the sole purpose of renting it out. Picture: NCA NewsWire / Max Mason-Hubers

Queensland also outperformed all other states during the first month of this year, reaching 45 per cent of all new purchases during the first month of 2024.

It follows the state government doubling First Home Buyer grants to $30,000 late last year.

The data also revealed six per cent of first home buyers were seeking loans with three or more applicants to lessen the load on individual buyers.

Guarantor loans – where family members of friends act as someone to provide additional security for loans — doubled from 1.8 per cent to five per cent in 2023.

“Purchasers who were able to leverage equity provided by guarantors, often from parents or guardians via Guarantor Loans, were able to enter the market with a deposit, on average, of $38,000,” Sebastian Watkins, co-founder of Lendi said.