Rentvesting Calculator
Compare buying a home to rentvesting and see which approach could better suit your goals.
Could rentvesting get you into the market sooner?
Rentvesting means renting where you want to live while buying an investment property in an area that's more affordable or offers stronger investment potential. For many buyers, it's a way to enter the property market sooner without compromising their lifestyle.
This calculator compares the weekly cost of buying the home you'd like to live in against renting that home while owning an investment property. It also estimates how much equity your investment could build over time, helping you compare both strategies side by side.
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Frequently asked questions
What is rentvesting?
Rentvesting is a strategy where you rent the home you want to live in while buying an investment property elsewhere. It allows some buyers to enter the property market sooner without having to compromise on where they live.
Is rentvesting always cheaper than buying?
Not necessarily. It depends on the purchase price, rental costs, interest rates and expected investment performance. This calculator compares both options using your assumptions so you can understand the financial difference.
Is rentvesting only for investors?
No. Many first home buyers choose to rentvest because buying where they want to live isn't currently affordable. It's simply one strategy for entering the property market and may or may not suit your circumstances.
What are the advantages of rentvesting?
For some buyers, rentvesting can provide greater lifestyle flexibility while allowing them to start building equity sooner. It may also offer access to areas with stronger rental demand or better affordability. Whether it's the right strategy depends on your goals, finances and long-term plans.
What are the drawbacks of rentvesting?
You'll continue renting the home you live in, which means you won't have the security of owning your own residence. Depending on your circumstances, there may also be different tax implications, government assistance eligibility and ongoing responsibilities as a property investor. It's important to weigh these trade-offs before deciding which strategy is right for you.
Does rentvesting still work after the 2027 tax changes?
Yes. Rentvesting is an affordability strategy, not a tax play, so the reform doesn't undo it. It does mean being more strategic with your purchases: aiming closer to neutral or positive cash flow, and considering whether an ownership structure such as a trust or company suits you earlier in your investment journey than you might have previously. Our negative gearing calculator shows the after-tax difference, and our Trust vs Company calculator can help you compare structures.
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These figures are a guide, not a guarantee, and they're not legal, financial, tax or credit advice. Book a free discovery call and get real numbers for your situation.