How rentvesting works

Investing in another state or territory as a rentvestor

Rentvesting gives you the freedom to invest anywhere in Australia. When you widen your search, you’ll have more opportunity to find emerging markets with potential for high returns. That said, you’ll need to keep in mind that different states and territories have their own regulations, taxes and market trends. You’ll also need to be comfortable with the idea of managing your property from afar.

Learn more about buying an investment property that fits your financial goals and lifestyle.

Does rentvesting work for you?

Rentvesting has become increasingly common, particularly among younger buyers priced out of inner city markets or those prioritising flexibility. It often appeals to people who want to start building property wealth without compromising their lifestyle.

Start by assessing if rentvesting fits your financial goals, lifestyle and risk tolerance.

Assess your financial situation

Calculate how much you can comfortably direct towards your investment property, including deposit, property management fees, stamp duty, loan repayments, and maintenance costs. You’ll need to remember that this investment strategy involves paying rent as well as your mortgage repayment, so it’s important to check that everything balances out, so you’re not feeling financially stressed. It’s also crucial that you have an emergency fund set up for unexpected life situations.

Define your investment timeline

It’s worth considering how long you’d need to hold the property for it to make the best financial sense for you. For example, are you looking to build equity over five, seven or even 10 years?

How does rentvesting fit in with your lifestyle?

If you’re open to the flexibility of renting, rentvesting could be a good fit. However, if you’re leaning more towards a sense of permanence in your living space, buying a home to live in can feel more satisfying.