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Writer's pictureMark Oliver

RENTVESTING – The Best of Both Worlds

The property tactic of Rentvesting is achieved in 2 parts – Rent according to your lifestyle plus purchase an investment property in an affordable location – why – easier entry into property, more affordable, less compromise, better long-term benefits – Life is Good.

As property prices continue to rise, purchasing in lifestyle hotspots is becoming more out of reach. Instead, many are choosing to rent rather than buy, as it means not having to compromise on their inner city or beachside lifestyle. For those eager to enter the property market, this is a great way to have the best of both worlds, a win-win.

Rentvesting allows your rental income to cover the mortgage expenses, so you can keep living the lifestyle you want at a minimal cost.

For this tactic to work, you have to be good at saving, and there needs to be a focus on delayed gratification. It’s all about living within your means. Don’t spend up big at the beginning while you’re building it up. Step away from the mentality of negative gearing and tax minimisation, and buy neutrally, or ideally a positively geared property as this provides higher rental yields.

Many Aussies see property as a very desirable asset to hold because property values continue to grow over the long term, and importantly for investors, the rent can form part of their passive income in retirement.


Rod Lingard from Plandd Financial provides a financial planning perspective – “Rentvesting allows you to potentially reap the rewards offered by gearing or leveraging. It may be that this is the perfect way to start accumulating long term assets. Done well, rentvesting provides additional cashflow which can be reinvested in different ways, to both diversify and grow for the long term. Many people rely on rental income to supplement their retirement income, so it might make sense to start sooner rather than later.”


Rentvesting is no different to any other property tactic – it’s just another tool to utilise properly. A rentvestor with the right financial structure may have the cash flow to continue saving while renting, giving them more opportunity to add to their portfolio down the track.


Toni Walker from property management company Odyssey Property Concierge says – “There has been a significant increase in Rentvesting, however while this tactic appears ideal to many, it’s not suited to everyone. Dwelling values in several property markets are rapidly outpacing wage growth, which means for every year you take saving for a deposit, the property investment market is moving further out of reach.”


The great Australian tradition was to buy a home on a quarter acre block then pay it off as fast as possible in the hope of living debt-free one day.

Rentvesting is quite the opposite. For many it is definitely a foreign way of thinking. It says we’re okay with good debt, as long as, we stick to our budget and keep using the money to re-invest further. You’ve got to have an open mind and be comfortable with debt.


It’s an olive branch tactic for those wanting to gain a property investment foothold in a market that’s forever moving, plus what used to work is no longer a viable option.


Our lifestyle is often the motivator behind what we do, and where we live, not always money, rentvesting ideally helps those who:

  • Travel or multiple locations required for work

  • Work from Home

  • Enjoy taking long holidays

  • Prefer the flexibility of renting (eliminates buying & selling fees)

  • Choose to live in upmarket suburbs or near entertainment hubs out of buying budget range

This article should convey that there are some serious considerations and planning to do in any property buying decision – your future depends on it. Be advised that these life-changing decisions are not to be taken lightly, it is seriously recommended to work with people you can trust – select a specific TEAM that supports your values, advises objectively and honestly with all the correct information plus will work in your best interest – not just trying to sell you the next trend.

It takes more than one person to become successful, it also takes time, experience and knowledge – our TEAM is recruiting now – join us.

Author: Mark Oliver – Lendd Group Pty Ltd – Mortgage, Refinance, Personal – www.lendd.com.au


“Personal Finances are like a Game of Chess – It’s how you play the game that ensures a better future. If your assets are chess pieces, you may know what pieces you have but do you know what they can do? Do you realize the immense value they can create when moved in the right way, in the right order, and at the right time?”



Thank you to Toni & Rod for providing professional comment:

Toni Walker – Odyssey Property Concierge – Property Management –www.odysseypropertyconcierge.com.au/

Rod Lingard – Plandd Financial Pty Ltd – Preparing for Later, NOW! - www.planddfinancial.com.au

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