INVESTORS FLIP THE SCRIPT TO HELP FIRST HOME BUYERS
Investors are registering to help first home buyers own sooner while strengthening their own portfolios.
3 min
For years, first-time home buyers have blamed investors for locking them out of the market, snapping up properties, and driving prices sky-high.
But a groundbreaking Rent-to-Sell scheme is flipping the script—turning investors into key allies, helping renters break free from the cycle and step onto the property ladder.
New data from PublicSquare reveals that 500 investors per month indicate their willingness to volunteer their properties, offering a much-needed lifeline to aspiring homeowners struggling to save for a deposit in NSW and QLD.
This groundbreaking model is helping first-time home buyers break free from the rental cycle by turning typical investment properties into a structured pathway to ownership.
Investors, who often face criticism for driving housing demand, are now making homeownership possible—while securing a 50% boost in rental returns and a guaranteed future sale price.
“There’s always been this battle between first home buyers and investors, but this model is proving they can work together,” said Dean Arnold, CEO of PublicSquare.
“We’re seeing investors who were once viewed as the enemy now giving renters the best shot they’ve ever had at owning their own home.
“It’s a win-win—investors get higher returns and a secure exit strategy, while first home buyers get a genuine pathway to ownership without needing a massive deposit upfront.”
With demand skyrocketing, there is now a three-month waitlist for investors eager to participate in the program, which is exclusive to NSW and Queensland. Meanwhile, thousands of pre-approved homebuyers are waiting for their chance to move in and begin their journey toward homeownership.
Making Homeownership Achievable
PublicSquare’s Rent-to-Buy model is proving to be a game-changer in a housing market where many Australians feel locked out.
First home buyers can move into a property with just 1.1% of the valuation upfront—a fraction of a traditional deposit. Instead of struggling to save while renting, tenants pay an additional 50% in rent each week, which goes directly toward their deposit.
Over time, this structured approach helps renters build savings while locking in a pre-set purchase price range, shielding them from future property price hikes.
The program ensures that only financially capable applicants are approved.
In New South Wales, only 41% of applicants meet the eligibility criteria, meaning they can afford both market rent and the additional deposit-building rent premium.
In Queensland, just 28% of applicants qualify, highlighting the program’s commitment to responsible homeownership.
The Investor Shift
With 30% of Australians now owning an investment property and the ATO reporting that 60% of these properties don’t generate enough rent to cover mortgage repayments and upkeep costs, the Rent-to-Buy model is changing the way property investment works. Investors who take part in the program benefit from:
- 50% higher rental income, providing immediate financial relief while helping first home buyers.
- Guaranteed future sale price range, giving certainty for both investors and buyers.
- Long-term, committed tenants, as renters are future homeowners who treat the property as their own.
- Portfolio growth opportunities, using increased rental income to secure more investments.
Arnold says the overwhelming demand shows the model is working.
“We’ve got over 45,000 eager homebuyers ready to take their first step toward ownership. Investors are recognising they don’t have to be seen as the bad guys—they can be the ones giving renters a real shot at owning their home, while securing their own financial future,” he said.
A New Era
Instead of waiting years to save a deposit while paying ever-rising rent, first home buyers now have an opportunity to move in and gradually secure their home while avoiding skyrocketing property prices. Meanwhile, investors have a sustainable way to expand their portfolios and ensure steady, reliable rental income.
“This is about flipping the narrative,” Arnold said. “For once, investors and first home buyers aren’t on opposite sides—they’re working together. Rent-to-Buy is proving that investors don’t have to be the villains of the housing market; they can be the reason renters finally become homeowners.”
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Buyer demand, seller confidence and the First Home Guarantee Scheme are setting up a frantic spring, with activity likely to run through Christmas.
2 min
The spring property market is shaping up as the most active in recent memory, according to property experts Two Red Shoes.
Mortgage brokers Rebecca Jarrett-Dalton and Brett Sutton point to a potent mix of pent-up buyer demand, robust seller confidence and the First Home Guarantee Scheme as catalysts for a sustained run.
“We’re seeing an unprecedented level of activity, with high auction numbers already a clear indicator of the market’s trajectory,” said Sutton. “Last week, Sydney saw its second-highest number of auctions for the year. This kind of volume, even before the new First Home Guarantee Scheme (FHGS) changes take effect, signals a powerful market run.”
Rebecca Jarrett-Dalton added a note of caution. “While inquiries are at an all-time high, the big question is whether we will have enough stock to meet this demand. The market is incredibly hot, and this could lead to a highly competitive environment for buyers, with many homes selling for hundreds of thousands above their reserve.”
“With listings not keeping pace with buyer demand, buyers are needing to compromise faster and bid harder.”
Two Red Shoes identifies several spring trends. The First Home Guarantee Scheme is expected to unlock a wave of first-time buyers by enabling eligible purchasers to enter with deposits as low as 5 per cent. The firm notes this supports entry and reduces rent leakage, but it is a demand-side fix that risks pushing prices higher around the relevant caps.
Buyer behaviour is shifting toward flexibility. With competition intense, purchasers are prioritising what they can afford over ideal suburb or land size. Two Red Shoes expects the common first-home target price to rise to between $1 and $1.2 million over the next six months.
Affordable corridors are drawing attention. The team highlights Hawkesbury, Claremont Meadows and growth areas such as Austral, with Glenbrook in the Lower Blue Mountains posting standout results. Preliminary Sydney auction clearance rates are holding above 70 per cent despite increased listings, underscoring the depth of demand.
The heat is not without friction. Reports of gazumping have risen, including instances where contract statements were withheld while agents continued to receive offers, reflecting the pressure on buyers in fast-moving campaigns.
Rates are steady, yet some banks are quietly trimming variable and fixed products. Many borrowers are maintaining higher repayments to accelerate principal reduction. “We’re also seeing a strong trend in rent-vesting, where owner-occupiers are investing in a property with the eventual goal of moving into it,” said Jarrett-Dalton.
“This is a smart strategy for safeguarding one’s future in this competitive market, where all signs point to an exceptionally busy and action-packed season.”
Two Red Shoes expects momentum to carry through the holiday period and into the new year, with competition remaining elevated while stock lags demand.
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