With housing unaffordability limiting first home buyers from securing a property in the country's many desirable suburbs, the new trend of 'rentvesting' gives them the perfect opportunity to have a property investment while still renting within the city limits.

"The idea is you live where you'd love to live but may not necessarily be able to afford to buy. Then buy and build a property portfolio as investments and benefit from having tenants and tax rebates pay for these properties," said Direct Investment Solutions consultant Deanne Carter. "This gives you freedom whilst being able to have your foot in the property door with other people helping you to pay it off."

Because the rentvestor is taking advantage of the returns provided with owning an investment property, such as rent and tax offsets, rentvesting is a practice that will certainly not break the bank.

But before you jump on the bandwagon, it is important to get the correct advice regarding the best ways to use rentvesting to build your property portfolio. Investment property purchases need to be based on the figures, not emotional considerations. After all, you are not going to live in this house, as you are building it for tenants and future resale.

It is also essential to let go of your preconceptions, particularly the misguided belief that renting is only for people who cannot afford to buy a property. You should learn to embrace the positive side of renting, as it allows you to have a better lifestyle while you are setting up for a more profitable future.