This approach allows you to purchase in a more affordable market while continuing to rent in the location that suits your lifestyle and work commitments.
According to Westpac’s Homeownership Survey for 2025, more than 54% of first home buyers are actively considering rentvesting as their entry into the property market.
Affordability challenges in the capital cities, rising property prices and lengthy deposit saving periods are driving the trend. In Sydney, for example, it currently takes a couple aged 25-34 six years and nine months to save for the deposit on an entry-priced house, according to Domain. As a result, buyers may look at more affordable markets like Perth or Adelaide to purchase an investment property, while continuing to live in Sydney.
There are pros and cons to this strategy. On the positive side, first home buyers are able to enter the property market and take advantage of potential capital gains and tax deductions on their investment property. On the other hand, buying an investment property instead of your own home means missing out on first home buyer assistance programs. There are also capital gains tax obligations to keep in mind.
As with all investment decisions, careful consideration is needed to see if rentvesting suits your current financial situation and long-term goals.
If you are interested in purchasing an investment property, Mortgage Advice Bureau Sydney can help secure your finance. Click here to discuss your scenario with one of our experienced Mortgage Brokers.