Rentvesting means renting the home you live in while buying an investment property somewhere more affordable. Instead of stretching to buy in an expensive suburb close to work, family or the beach, you keep renting there and put your deposit into a cheaper property in a growth area that someone else's rent helps pay off. You get onto the property ladder and earn capital growth without giving up the lifestyle or location you want to live in.

Is rentvesting a good idea in Australia?

It can be, especially for younger buyers priced out of the inner-city suburbs they want to live in. Rentvesting lets you buy a more affordable property sooner, claim deductions on the investment loan, and stay flexible if your job or life changes. The big trade-offs are that you remain a tenant where you live, you give up the capital-gains-tax exemption you'd get on a home you live in, and your investment property's rent and value aren't guaranteed. Whether it beats buying to live in depends heavily on prices, rents and growth — run your own numbers in the calculator above.

What are the downsides of rentvesting?

You stay a renter where you live, so you can be asked to move and you don't control the home. You lose the main-residence capital gains tax exemption — profit on the investment property is taxable when you sell. You take on landlord costs and risks: vacancy, repairs, rate rises, problem tenants and management fees. You may also miss out on first-home-buyer grants and stamp duty concessions that only apply when you live in the property. Rentvesting suits disciplined investors, not everyone.

Rentvesting Calculator

Rent where you want to live and buy a cheaper investment property — or buy a home to live in? Compare the net wealth of both paths over your chosen time frame. Indicative only, general information not advice.

Last verified: 5 May 2026

Rent where you live, buy where you can?

Rentvesting means renting the place you actually want to live in while owning a cheaper investment property elsewhere, with a tenant's rent helping cover it. The alternative is buying a home to live in yourself. This tool compares the rough net wealth of each over your chosen time frame. General guidance only.

Worked example. Buying a $750,000 home growing 5% p.a. builds about $472,000 of equity over 10 years. Rentvesting with a $500,000 property — earning rent but paying $600/week to live where you want — lands in a similar ballpark. Adjust the inputs to see which pulls ahead for your numbers.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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