What Is Rentvesting

Rentvesting in Australia - What Is It? Pros & Cons

Owning while you rent.

Navigating the Australian property market, especially for first-time buyers, can feel like scaling a mountain. With skyrocketing house prices in major cities, saving for a deposit becomes a huge task. In this challenging landscape, rentvesting emerges as a compelling strategy that offers a unique blend of ownership and flexibility.

What is Rentvesting?

Rentvesting involves renting a property in your desired location, typically a bustling city with high living costs and lower rental returns, while simultaneously owning an investment property in a different location. This investment property is often situated in a regional area, boasting a lower purchase price and higher rental yield

Benefits of Rentvesting:

  1. Breaking into the property market: Rentvesting allows you to enter the property market with a smaller initial investment compared to purchasing a property in your preferred location. This can be a great way to start building equity and a property portfolio.

  2. Lifestyle Flexibility: You get the best of both worlds by residing in your preferred location while enjoying the perks of property ownership through your investment property.

  3. Potential for Higher Rental Yields: Investment properties in regional areas can often offer higher rental yield returns than those in major cities. This additional income can contribute towards mortgage repayments and living expenses.

  4. Diversification: Owning properties in diverse locations, you spread out risk and fortify your investment portfolio against market fluctuations.

Considerations and Challenges:

  1. Dual Responsibility: Managing two properties amplifies your workload and associated costs, necessitating a careful balance of resources.

  2. Travel and Vacancy Risks: Maintaining an investment property in a distant locale may entail frequent travel for inspections or repairs. There’s also the risk of vacancies if tenants are hard to come by.

  3. Potential for Slower Capital Growth: While regional properties might offer attractive rental yields, their capital growth might be slower compared to major cities.

Is Rentvesting Right for You?

Rentvesting can be a strategic option for those who:

  • Prioritise a particular lifestyle but face financial constraints in buying property in their desired location  

  • Have a long-term investment perspective and are comfortable managing multiple properties.

  • Can weather the financial risks associated with vacancies and maintenance expenses


Rentvesting can be a viable strategy for entering the property market and building wealth. However, it's crucial to carefully consider your individual circumstances, financial goals, and risk tolerance before deciding if this approach is right for you.

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