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What is Rentvesting?

By Abodable November 18, 2021, Read time: 5 min

Rentvesting; it seems to be another buzzword that came out of 2020. 

So, what is Rentvesting?
To put it simply, Rentvesting is renting a property that suits your lifestyle. At the same time, you purchase an investment property that is right for your budget.

Unfortunately, the traditional way of getting a good job, saving your deposit, buying your home and living happily ever after is becoming a thing of the past. Unless you've got help from your parents or a lump sum of money coming your way, deposits for idyllic locations are further out of reach. 

Home prices in inner-city and coastal suburbs are ever-increasing, making it harder for younger generations to achieve the dream of owning their home. However, more regional areas are still in an affordable price bracket (meaning a more realistic deposit requirement and repayments) and are earning great returns. Rentvesting is an alternative way of getting your foot into the property marketing without having to wait another ten years of saving that deposit. 

How does it work?
Let's use our mate Ryan as an example. Ryan currently lives two streets back from the beach on the beautiful Sunshine Coast. He has a solid employment history, earns a $90k a year salary and has next to no debt. Ryan is looking into purchasing a home in his current location; however, house prices are starting around that $800,000 mark. He needs to save a 20% deposit, meaning a deposit of at least $160k! That's nearly two years salary! Feeling a bit defeated, Ryan is about to give up on his dream of entering the property market for at least another few years. 
Grabbing a coffee with one of his mates from Abodable, Ryan mentions his struggle, and his mate tells Ryan about the concept of Rentvesting. Ryan looks on the Abodable website and finds properties in high growth suburbs, with attractive rental returns for half the asking price of his current location! Working on figures with his broker, Ryan discovers that not only does he currently have the deposit saved for an investment property, but the rental return will cover a majority of the costs associated with this investment!

He is also confident that he can still afford the property while renting in his perfect location, even if he loses his job or takes a pay cut.

On top of this, investing in a growth region will likely mean that Ryan's property value will increase, providing him with equity in the investment to work up to that dream home more quickly than he could have just renting and saving. 

Sounds great, right? It is! But there are also pros and cons to consider for Rentvesting:


  • Getting into the property market sooner than expected
  • Someone else paying off the mortgage
  • Leverage for another property
  • Able to save while investing

  • Not paying off your own home
  • You're still at the mercy of agents and landlords
  • You need to be able to be disciplined with your budgeting
  • No one has a crystal ball; your situation or the property market could go south at any time

There are pros and cons to all decisions in life, and Rentvesting may not be for everyone. However, if you're living in an expensive city with no real prospect of owning a home for a while, Rentvesting is an excellent option to start on the property ladder and make your money work for you!

Want to hear more about Rentvesting? Listen to this episode of My Millenial Money, where Glen and John discuss this topic in-depth!

If you're ready to start looking for your first investment property, we've got many packages to suit all needs and budgets. View our listings here, get in contact and start your Rentvesting journey today!


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