A Unique Approach to Property Investment and Lifestyle
A couple of Indian origin who have built an impressive portfolio of 18 investment properties are sharing their insights on property ownership and lifestyle choices in Australia. Rasti Vaibhav, 48, and his wife Rupali Rastogi, 43, came to Australia in 2006 with a background in IT and banking. Their journey into property investment began in 2011 when they purchased land and built a $440,000, four-bedroom house in the Newcastle suburb of Fletcher, using just a 10% mortgage deposit.
Today, they own a diverse range of properties across major Australian cities, including Sydney's outer west, Melbourne's north, Brisbane's fringes, and south of Perth. The total cost of these investments is $5.8 million, and they estimate their current value at $11.3 million. This impressive portfolio has allowed them to live a more flexible and affordable lifestyle by renting rather than buying their dream home.
Why Renting Might Be a Better Option
Rasti Vaibhav emphasizes that one of the biggest mistakes Australians can make is spending years saving up for a mortgage deposit to live in a desirable suburb. He argues that by the time they save enough, house prices may have increased significantly, making it unaffordable. "It's very emotional—'I live in my own home and I can choose to change the décor as and when I like it'—but just be aware that's very costly," he said.
Instead of buying a $3.5 million home near Narraweena, where they currently rent, the couple chose to live in a more affordable area. Their annual rent of $100,000 is much cheaper than repaying $230,000 a year for a similar house in the same area. This decision allows them to focus on building their investment portfolio while enjoying the lifestyle they desire.
The Impact of Rising House Prices
With Sydney's median house price approaching $1.5 million, many Australians find themselves priced out of the market. Rasti Vaibhav points out that the average person would need to save for several years to afford a 20% deposit and stamp duty, only to find that prices have risen further by the time they are ready to buy. "It becomes unaffordable for a lot of people on average," he said.
He encourages people to consider renting in upmarket suburbs instead of buying a home in less desirable areas. "To us, saving that three hours per day is more important. It's also about the time and the peace that they're able to spend time with their loved ones in pursuing their hobbies that they want to do."
A Strategic Investment Plan
The couple’s approach to property investment involves focusing on affordability and growth potential. They have invested in properties in more affordable suburbs, allowing them to build a diversified portfolio. Rasti Vaibhav believes that young people daunted by high prices in Sydney can look for houses in other capital cities for around $600,000 and capitalize on good rental yields and capital growth.
They also highlight the benefits of leveraging property value. As house prices rise, individuals can extract equity from their properties to purchase additional investments, effectively treating real estate as a business. This strategy allows them to grow their wealth over time.
The Benefits of Rent-Vesting
Rent-vesting, according to Rasti Vaibhav, isn't about choosing between a home or an investment—it's about having both. By renting, they maintain flexibility and freedom to move closer to schools, workplaces, and lifestyle preferences without the burden of a mortgage. They have lived in eight different rental properties since moving to Australia, including during the Global Financial Crisis when they leased a home in Kensington while Rasti studied for his MBA.
Despite their success as investors, the couple still plans to own their own home eventually. "We have just delayed our buying a home—it doesn't mean that we'll never own our own home," Rasti said. For now, they are focused on building their portfolio and achieving financial independence through smart property investment strategies.
Conclusion
Rasti Vaibhav and Rupali Rastogi’s journey highlights the importance of strategic thinking when it comes to property investment and lifestyle choices. By prioritizing affordability, flexibility, and long-term growth, they have created a successful investment portfolio while maintaining a desirable quality of life. Their story serves as an inspiration for others looking to navigate the complexities of the Australian property market.
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