It’s no secret that renting in Australia has become incredibly tough. Vacancy rates are at record lows, rental prices are surging, and competition is fierce like in Sydney’s Lower North Shore and other high-demand areas.
For many renters, it feels like they’re stuck on a financial treadmill. They’re paying more and more for less space and wondering how they’ll ever get ahead, let alone buy a home.
Some feel people renting think that the property ladder is completely out of reach. But with the right advice, forward planning, and a strategy that fits your personal circumstances, home ownership might be more possible than you think.
Why is it so hard for renters right now?
There are a few reasons why renting has become so challenging:
✅ Limited rental stock: Low levels of housing supply are pushing rents up, especially in desirable locations.
✅ Higher costs: Investors face increased costs, which often get passed on to tenants.
✅ Population growth: With more people coming to Sydney and other major cities, demand is outstripping supply.
✅ Wage stagnation: Rents are rising much faster than incomes, making it harder to save or budget for anything else.
And let’s be honest when you’re spending 30–50% of your income on rent, saving for a deposit can feel near impossible.
Why is getting on the property ladder so difficult?
Even if renters are doing everything “right” like paying bills on time, managing debt responsibly, and trying to save the barriers to entry are still high:
- Rising property prices
- Difficulty getting minimum deposit together
- Tighter lending rules
- Limited borrowing capacity due to high rent outgoings
It can feel like a vicious cycle. But there are ways to break it.
Realistic Strategies for Renters Who Want to Buy
The good news? There are different ways to approach home ownership and not all of them involve buying a million-dollar house straight away.
Here are some of the most effective strategies that could work for renters who want to buy:
🏠 First Home Guarantee Scheme
This government-backed scheme can be a game changer for eligible first home buyers. It allows you to buy with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI).
➡️ That could save you thousands and fast-track your move into the market.
Tip: Places are limited, so working with a broker (like me!) ensures you’re applying through a lender who participates and that your application is as strong as possible.
💡 Rentvesting
This strategy involves buying an investment property in a more affordable area while continuing to rent where you want to live. It can be a smart stepping stone into the market.
✔ You start building equity
✔ You may benefit from rental income and tax deductions
✔ You keep the lifestyle you want while building wealth
It’s not for everyone, but for renters priced out of their local area, it’s well worth exploring.
👨👩👧 Living with family (if possible)
This won’t work for everyone, but moving back in with mum and dad, even short-term, can supercharge your savings. Reducing or eliminating rent for 6–12 months can get you closer to a deposit faster than you think.
👉 You’ll need a solid budget and the discipline to stick to it, but the payoff can be big.
📝 Build a budget and stick to a plan
It’s not exciting, but it’s effective. One of the best ways to prepare for buying a home is to get clear on your income and expenses and commit to a realistic savings plan.
Steps to get started:
- Track your spending for 30 days
- Identify areas where you can reduce discretionary expenses
- Set a realistic savings goal (weekly or monthly)
- Open a separate savings account just for your deposit
- Stay accountable and review your budget monthly
Need help creating a plan? I’m here to help you map it out and keep you on track.
🏦 What Lenders Want to See
Even if you don’t have a deposit yet, there are ways to start preparing for a future loan and rent payments can work in your favour.
💡 If you’ve been paying your rent on time for at least 6–12 months, lenders may accept this as evidence of your ability to make regular repayments especially if rent is comparable to what a mortgage would be.
Other things that help:
✅ A stable job history
✅ Low or manageable debts
✅ Good credit conduct
✅ Clear savings history
It’s Not Hopeless But It Does Take Planning
Home ownership might not be around the corner, but with the right strategy, it’s not necessarily out of reach. You may not be able to buy your dream home tomorrow, but you could take the first step toward financial independence today.
And you don’t have to figure it out alone.
I’m here to help renters explore every option, crunch the numbers, and develop a clear plan toward owning their own home whether that’s now or in a few years.