What Rentvesting Means
Rentvesting is renting where you want to live and buying where you can afford. This allows people to enjoy lifestyle, job access and family proximity while still building equity.
Why it is rising:
- Prices in Sydney and Melbourne are out of reach for many
- Saving a full deposit can take up to ten years
- Buying earlier lets you capture market growth
- Renting offers flexibility while your investment grows
Why It Has Become a Necessity
Many buyers cannot afford to purchase in the suburb they live in. Instead of waiting a decade, they buy an investment property now and use equity to purchase their future home later.
What buyers are doing:
- Staying with parents to reduce living costs
- Buying in growth areas in other states
- Using equity from one property to buy again
- Delaying their owner occupied purchase until they have more leverage
How the Strategy Works
Rentvesting is a step by step pathway into ownership.
The typical journey:
- Rent or live at home
- Buy an affordable investment property
- Allow the market to grow and increase equity
- Reinvest or sell to buy your eventual home
Many clients who start with one property return within 12 to 18 months to buy a second investment.
Why It Helps First Home Buyers
The biggest advantage is entering the market sooner. While saving, prices continue to rise. Rentvesting lets you participate in the growth instead of being left behind.
Key benefits:
- Faster entry into the market
- Ability to live near work or family
- Long term wealth building through equity
- Flexibility to upgrade later
The Bottom Line
Rentvesting is no longer a niche strategy. It is a practical solution for first home buyers facing high prices and long savings timelines. Buying where you can and renting where you want is becoming the new path to home ownership.
