Rentvesting has become a common strategy for buyers priced out of the suburb they want to live in — but it changes some of the finance conversation compared to buying a home to live in.
What rentvesting actually means
Rather than buying a home to live in, a rentvester buys an investment property — often somewhere more affordable or with stronger rental yield — while continuing to rent in the area they actually want to live.
How lenders view an investment purchase differently
Investment loans are usually assessed with rental income factored into serviceability (often at a discounted percentage), and can carry different requirements to an owner-occupier loan, including in some cases different LVR limits or loan features.
First home buyer schemes usually don't apply
Because you're not living in the property, most first home buyer grants and concessions — which typically require owner-occupation for a minimum period — won't apply to a rentvesting purchase, even if it's your first property.
Chris Brown
Managing Director & Finance Broker at New Vision Financial Services, a credit representative under Australian Credit Licence 384704 and a member of the FBAA and AFCA. More about Chris →
Frequently asked
Does rentvesting affect my ability to buy a home to live in later?
It can factor into future serviceability, since you'd be carrying an investment loan (and its rental income) alongside a new owner-occupier application — your broker can model this ahead of time.
Is rentvesting cheaper than buying where I want to live?
Often, yes, in upfront cost terms, since investment properties are frequently purchased in more affordable areas — though ongoing costs like property management and investment loan structuring are part of the full picture.
Can I convert an investment property to my home later?
Yes, this is common — moving in later can change the tax treatment of the property and may affect your loan structure, so it's worth discussing with your broker and accountant before you do.