The dream of home ownership in Australia is undergoing a profound transformation. What was once a standard expectation of adult life is now a daunting challenge for many, reshaped by skyrocketing property values, sluggish wage growth, and the persistent pressure of higher interest rates. The national picture is stark, with Sydney projected to see a median house price exceeding $2 million by 2027. For those locked out, the financial future looks even bleaker, with analysis suggesting tenants will need double the superannuation of homeowners who have paid off their mortgage.
A New Lens on Property: Strategy Over Expectation
However, according to Sydney Property Wealth Strategist Rasti Vaibhav, despair is not the only option. Speaking to the Daily Mail, Vaibhav argues that the pathway to property ownership hasn't vanished; it has simply evolved. "The lens through which people view and approach property has simply changed," he said. Success now hinges on a deliberate strategy and a long-term plan, a far cry from the simpler market conditions faced by previous generations.
Vaibhav, 49, and his wife Rupali Rastogi, 43, who moved from India to Australia in 2006, embody this strategic shift. Starting with a background in IT and banking, they began their property journey in 2011 with a 10% deposit on a $440,000 house in Fletcher, Newcastle. That property is now valued at an estimated $1.04 million. Today, they manage an impressive portfolio of 20 properties worth $14.3 million, spread across Sydney's outer west, Melbourne's north, Brisbane's fringes, and south of Perth.
Their core strategy is rentvesting—choosing to rent in a desirable location while buying investment properties in more affordable areas. They live modestly, renting in Narraweena on Sydney's northern beaches, rather than stretching to buy a $3.5 million home nearby. This approach, Vaibhav insists, is often smarter than spending years saving for a deposit in an elite suburb, only to be priced out by relentless growth.
Navigating a Fragmented Market: Scarcity and Fundamentals
Vaibhav predicts the Australian market is entering a more fragmented phase. "We're heading into a more fragmented phase, where location and supply constraints matter more than national headlines," he explained. He identifies strong population growth and chronically low housing supply as irreversible forces that will continue to support prices in well-chosen areas, even with higher interest rates.
His advice for buyers is to focus on controllable factors:
- Focus on Scarcity: Target properties with unique features or in areas with limited supply.
- Build Cash Buffers: Plan for interest rate fluctuations and vacancy periods.
- Prioritise Long-Term Fundamentals: Look beyond short-term hype to areas with sustained demand drivers.
- Understand Property Cycles: Recognise whether a market is in a boom, downturn, stabilisation, or upturn phase to identify value.
"Buyers can get ahead by focusing on scarcity, cash flow buffers and long-term fundamentals, rather than trying to perfectly time the market," Vaibhav stated.
The Perils of Waiting and the Power of a Plan
One of the biggest mistakes aspiring homeowners make, according to Vaibhav, is inaction. "The biggest mistake people make is waiting for certainty—it never comes," he warned. "While you're waiting for the perfect opportunity or until you're ready, house prices are increasing quicker than you're able to save."
He emphasises that property should be viewed as a long-term investment with a holding period of at least seven years to allow for capital growth. Rushing in without research is equally risky. The key is to develop a business-like plan tailored to personal goals—whether that's building equity, generating cash flow, or minimising tax.
"The people who succeed are focused on what they can control today and actually plan very conservatively," he said. "Before jumping in, prepare for the worst-case scenario... That means building cash buffers and setting yourself up for long-term demand rather than short-term hype." He cautions against following the crowd into headline-grabbing 'hot spots', which are often at the peak of their cycle by the time they make the news.
For Vaibhav, the ultimate goal of property investment is financial freedom—the power of choice. While the traditional dream of a quarter-acre block in a capital city may be fading, his story demonstrates that with a recalibrated strategy, a foothold on the ladder is still within reach for those willing to adapt.
