Indian Couple’s Journey to Building a Property Empire

Rasti Vaibhav and Rupali Rastogi, an Indian couple who relocated to Australia in 2006, have made headlines for their impressive property investment achievements. Starting with modest means, they have amassed a portfolio of 18 properties valued at approximately $11.3 million. Their journey began in 2011 with a 10% mortgage deposit, purchasing land and constructing a $440,000 four-bedroom house in Fletcher, Newcastle.

Strategic Property Locations Across Australia

The couple’s properties are strategically situated in key areas such as Sydney’s outer west, Melbourne’s north, Brisbane’s fringes, and south of Perth. Mr. Vaibhav highlights a common mistake among Australians: prioritizing saving for a mortgage deposit to live in desirable suburbs as owner-occupiers, only to find prices have escalated beyond reach. He suggests that investing in property might be a more strategic decision than buying a home to live in.

Challenging Traditional Homeownership Norms

Instead of purchasing a $3.5 million home in Sydney, the couple rents in Narraweena for $100,000 annually. This approach allows them to build a substantial property portfolio likely to appreciate faster than wages. Mr. Vaibhav argues that paying $230,000 annually in mortgage repayments for a similar home nearby is not worthwhile.

The Benefits of Rent-Vesting

With Sydney’s median house price around $1.6 million, saving for a 20% deposit and affording stamp duty is challenging for first-home buyers. Mr. Vaibhav advocates for “rent-vesting,” living where one desires for lifestyle benefits while investing elsewhere. After residing in Epping, they moved to Sydney’s northern beaches, renting in North Curl Curl and later Narraweena to be near a selective school and the ocean.

Prioritizing Lifestyle Over Homeownership

The couple values time and lifestyle over traditional homeownership. They prefer renting in an upmarket suburb despite eviction risks, securing fixed-term leases for stability. Since moving to Australia, they have lived in eight properties and plan to eventually buy their dream home by selling some of their investments.