Rentvesting: A Strategic First Step into the Property Market

If you’ve been thinking about buying your first property, chances are you’ve run into a familiar problem:

You want to get into the market — but you can’t afford the kind of property you actually want to live in.

This is the crossroads where most first-home buyers find themselves. And it usually leads to two not-so-great choices:

Option 1: Live Where You Want — But Not How You Want

For many buyers, this means purchasing a small apartment in an area they love. It might be close to work, friends, cafes — but it’s also a property with:

• High body corporate fees

• Limited space

• And potentially limited capital growth over time

It gets you in the market, sure. But it doesn’t necessarily set you up for long-term wealth.

Option 2: Buy a “Better” Property — in a Suburb You Don’t Love

The other common path is to buy a house with a bit more space and land — but far away from your lifestyle. Long commutes. Less social connection. A completely different day-to-day life.

And if you’re not ready to give that up, it can feel like there’s no real option left.

So What’s the Third Option? Rentvesting.

Rentvesting lets you live where you want, and buy where it makes sense financially.

Instead of buying based on emotion, you’re buying based on numbers — and treating your first property like what it is: an investment.

You can:

• Target suburbs entering a growth cycle

• Focus on strong rental yields

• Choose lower-maintenance properties

• Build equity while keeping your flexibility

That equity can then be used down the line — either through refinancing or selling — to help you buy the home you actually want to live in.

Real Example: $100K Income, $100K in Savings

We recently helped a client earning $100,000 a year, living in a share house and paying $300/week in rent.

They had $100,000 saved and wanted to buy their first property — but didn’t want to move out of their current setup. They were happy where they lived and wanted to invest instead.

Here’s what we mapped out:

• Purchase price: $500,000 (investment property)

• Borrowing capacity: ~$600,000

• Loan type: 90% LVR, interest-only at 6.29%

• Rental income: ~$1,950/month

• Loan repayments: $2,342/month

• Property expenses: ~$400/month

• Out-of-pocket (post-tax): ~$585/month

They’re now moving ahead with the purchase — staying where they live, and growing their wealth on the side.

It’s Not About How Much You Earn — It’s About How You Use It

Rentvesting won’t be the right strategy for everyone. But for buyers who value flexibility, lifestyle, and smart investing, it’s often the most practical first step.

It gets your money working for you, and keeps your future options open.

If you want help understanding whether rentvesting makes sense for you, feel free to get in touch.