Rentvesting.. Is it right for you?
- Rielle Berglund
- 11 minutes ago
- 2 min read
What is it?
Rentvesting is when you rent where you want to live—for convenience, lifestyle reasons or affordability
Then purchase an investment property somewhere else, usually in a more affordable or higher-growth area.
It’s a strategy that lets you enjoy the lifestyle you want now, while still getting you into the property market.
Why?
Here’s what I tell my clients when they’re weighing up their options:
Flexibility
Do you want or need to live near your CBD office? Close to uni or schools? Or just love the buzzing culture and entertainment of the city? These areas are often unaffordable for those just entering the market or singles. Renting in these locations gives you access to those perks without the crushing mortgage.
Better Investment Potential
When you buy purely as an investment, you can choose a location based on capital growth potential, rental yields, or infrastructure development. Not based on emotion.
Tax Advantages
As an investment, your property may come with tax deductions—such as interest on your loan, maintenance, and depreciation—that a primary residence doesn’t.
Lower Entry Costs
Buying in regional areas or emerging suburbs usually means a lower deposit, stamp duty, and overall purchase price, making it easier to get started.
How to Get Started With Rentvesting
If rentvesting sounds like your kind of strategy, here’s how to approach it:
Step 1: Speak to a Mortgage Broker (Like Me)
This isn’t just self-promotion. A good broker can help you understand how much you can borrow, what your loan options are, and whether you're eligible for any first home buyer benefits (yes, in some circumstances you still are).
Step 2: Does it work with your budget?
Look at rental value, mortgage repayments, and your personal cash flow. You’ll want the investment property to at least cover most of its costs—or ideally be positively geared.
Step 3: Where to buy?
Don’t chase hotspots. Look for areas with consistent growth, low vacancy rates, and good infrastructure plans. I often work with buyers' agents to help clients assess their options.
Anshu from Premier Buyers makes some great points for those just starting out.
Step 4: Plan for things that may go wrong.
Landlord insurance, a good property manager, and a buffer in your offset account are all part of smart investing.
Rentvesting isn’t for everyone
But..
It can be a way into the property market when your favoured location doesn't fit the budget. As a mortgage broker, my role is to help you structure your loan, navigate the process, and make decisions that support your long-term goals.
If you’re thinking about getting into the property market but feel priced out of your dream suburb, rentvesting could be your best first step.
Ready to take the leap? Reach out—I’d be happy to walk you through your options.
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