A migrant couple from India, who now own 18 investment properties across Australia, are challenging the conventional wisdom of homeownership. Rasti Vaibhav, 48, and his wife Rupali Rastogi, 43, arrived in Australia in 2006 with backgrounds in IT and banking. They began their real estate journey in 2011, starting with a modest investment in Newcastle, and have since built a property portfolio worth millions.
The couple’s story is a testament to strategic investment. With only a 10 percent mortgage deposit, they purchased land and constructed a $440,000 four-bedroom house in Fletcher, a suburb of Newcastle. Today, their properties span Sydney’s outer west, Melbourne’s north, Brisbane’s outskirts, and south of Perth, collectively valued at an estimated $11.3 million, up from a purchase price of $5.8 million.
The Case Against Traditional Homeownership
Mr. Vaibhav argues that the traditional approach of saving for a mortgage to buy a home in an upscale suburb is flawed, especially as property prices in cities like Sydney continue to escalate. “It’s very emotional,” he told Daily Mail Australia, “but just be aware that’s very costly.” He believes that the dream of owning a home often delays opportunities for more lucrative investments.
The couple has opted for a lifestyle of “rent-vesting,” living in a rented property in Narraweena, near Sydney’s northern beaches, while investing in properties elsewhere. This decision allows them to enjoy a desirable lifestyle without the financial burden of a $3.5 million home purchase in the same area.
Strategic Investment and Lifestyle Choices
Mr. Vaibhav’s annual rent of $100,000 is significantly less than the $230,000 he estimates he would pay annually on a mortgage for a similar home. “The price in Sydney has been going up and up and up,” he said, noting that the city’s median house price is nearing $1.5 million. This makes it increasingly difficult for many to save for a 20 percent deposit, only to find themselves priced out by the time they achieve their savings goal.
Ms. Rastogi shared that their choice to rent was also influenced by their children’s education and lifestyle preferences. “Our daughter always really wanted to live next to the beaches just for the lifestyle,” she said, emphasizing the importance of proximity to schools and the ocean.
Financial Implications and Future Plans
The couple’s approach highlights the potential benefits of investing in more affordable suburbs with strong rental yields and capital growth. “A young person daunted about high prices in Sydney can look for a house selling for $600,000 in an outer suburb of another capital city,” Mr. Vaibhav suggested, pointing out the advantages of leveraging property value increases to acquire additional investments.
Despite the risks associated with renting, such as potential evictions, Mr. Vaibhav believes the benefits outweigh the drawbacks. “We are actually at the whims of our landlord,” he acknowledged, but noted that they mitigate this risk with secure lease agreements.
“Rent-vesting isn’t about choosing between a home or an investment; it’s about having both,” Mr. Vaibhav said.
Looking ahead, the couple plans to eventually own their dream home, but only after capitalizing on their investment strategy. They aim to sell several properties to fund this purchase, illustrating a long-term vision that prioritizes financial security over immediate homeownership.
Conclusion: Rethinking the Australian Dream
Rasti Vaibhav and Rupali Rastogi’s journey offers a compelling narrative for those reconsidering the traditional Australian dream of homeownership. Their success underscores the potential of strategic property investment as a pathway to financial independence. As they continue to build their business, Get RARE Properties, they serve as a reminder that sometimes the road less traveled can lead to the most rewarding destinations.
