Lets face it buying property in the neighbourhoods we actually want to live in is getting harder. Prices are high,
lifestyle sacrifices are real, and many Australians are stuck between where they want to live and what they
can afford. But what if you didn't have to choose?
Enter rentvesting a strategy that's turning the traditional idea of homeownership on its head.
What is Rentvesting?
Rentvesting = renting where you want, investing where it makes financial sense.
Instead of buying a home to live in, you rent in your dream suburb whether that's by the beach, near work, or
close to the action and purchase an investment property in a more affordable area with strong growth
potential.
Example: You might live in South Yarra or Bondi for the lifestyle perks, while owning a rental property in
Geelong, Newcastle or Adelaides northwhere your money goes further and capital growth potential is strong.
Why Rentvesting Is Gaining Momentum
1. Affordability: Buying in a growth area typically means a lower purchase price, smaller deposit, and reduced
repayments.
2. Lifestyle Freedom: Live where you love, without being tied down to a big mortgage.
3. Wealth Creation: Your investment grows in value and rental income helps cover expenses.
4. Tax Benefits: You may claim deductions on interest, management fees, repairs, and more.
5. Faster Market Entry: Get into the market sooner while others are still saving.
Consider These Trade-Offs
1. Dual Costs: You'll be paying rent and a mortgage.
2. No Home Ownership Where You Live: Renting means lease terms and landlord rules.
3. Capital Gains Tax (CGT): Investment properties may attract CGT.
4. Market Risk: No property is guaranteed to increase in value.
5. Property Management: Maintenance and tenant issues require attention or outsourcing.
Is Rentvesting the Right Strategy for You?
Is Rentvesting Right for You?
If you're priced out of your dream suburb but still want to grow your wealth and enjoy your lifestyle,
rentvesting could be the answer. It's a flexible strategy for forward-thinkers who value both financial growth
and lifestyle freedom.
Want to find out if rentvesting could work for you?
Contact me to book a personalised strategy session.
Disclaimer: This information is general and doesn’t consider your specific financial situation. Always seek professional advice tailored to your needs.