In this episode of the Weekly Finance News Wrap, Paige Estritori reports on a new trend among Australian first home buyers called "rentvesting" - buying a property not to live in, but to lease it out. Nearly 20 % of all first home buyers are adopting this approach, particularly in New South Wales. However, affordability crisis in the NSW is pushing families to spend an alarming 58.5% of their income on mortgages. On the economic front, Australia faces potential challenges that may necessitate several rate cuts over the next 18 months due to AI advances, health improvements, and a slowed Chinese economy. Despite these pressures, the Reserve Bank Australia continues to hold the cash rate at 4.35%, focusing on moderating inflation. All future rate decisions will be guided by data, especially on inflation and labor market outcomes.n