Live where you love, invest where it makes sense.
In today’s property market, many Australians—especially first-home buyers—are discovering that “rentvesting” can be a smarter, more flexible path to getting onto the property ladder.
At Trusted Financial Choice, we’ve seen this strategy become increasingly popular among clients who want lifestyle and long-term financial growth.
So, what exactly is rentvesting—and is it right for you?
What is Rentvesting?
Rentvesting is a strategy where you rent where you want to live but buy an investment property somewhere more affordable. Essentially, you separate your lifestyle choices from your property investment decisions.
It allows you to:
- Live in a location you love (even if it’s a bit more expensive)
- Enter the property market sooner
- Grow wealth through property while keeping lifestyle flexibility
I.e. Meet Sarah – Sarah is a 32-year-old marketing manager who loves living in Melbourne’s inner north. Buying there would cost over $1M, which is out of reach right now. Instead, she chooses to rent in Fitzroy and buy an investment townhouse in Geelong, where the rental return covers most of the mortgage. She builds equity while maintaining the lifestyle she enjoys.
Why Consider Rentvesting?
✅ Enter the market sooner
You don’t need to wait until you can afford your “dream home.” You can start building wealth right now with a more affordable investment.
✅ Tax benefits
Investment properties come with potential tax deductions that aren’t available with owner-occupied homes, such as depreciation, interest, and maintenance.
✅ Lifestyle freedom
Live close to work, in a trendy area, or by the beach—without the million-dollar mortgage.
✅ Flexible future options
You may choose to move into your investment property later, continue renting it out, or sell it if the value increases.
Things to Consider
- Renting means less security
You’re at the mercy of landlords and lease terms—some people find this lack of control frustrating. - No First Home Owner Grant (in most cases)
Rent-vestors often miss out on first-home buyer benefits unless they plan to live in the property first. - You still need a solid strategy
You’ll want to buy in growth areas with strong rental yields. That’s where a buyer’s agent market knowledge is crucial.
Is Rentvesting Right for You?
Rentvesting isn’t just for young professionals—it’s a practical strategy for couples, families, and even downsizers. It depends on your:
- Income & borrowing power
- Lifestyle preferences
- Long-term financial goals
- Appetite for investment and risk
Let’s Build Your Strategy
At Trusted Financial Choice, we help clients evaluate whether rentvesting fits into their bigger financial picture. We’ll guide you through:
- Investment loan options
- Potential rental returns
- Ownership structures
- Tax implications (in collaboration with your accountant)
Want to know if rentvesting could work for you?
Book a free strategy session with our team today. We’ll help you plan smart and buy sooner!