Rentvesting: A Strategic Way to Buy Your First Property
- 15 hours ago
- 6 min read
For many first home buyers right now, the property market can feel incredibly frustrating. Property prices are increasing. Saving a deposit can feel overwhelming. And it often feels like there are only a few ways to get into the market.
Usually the advice sounds something like:
“Save a 20% deposit.”
“Get help from the Bank of Mum and Dad.”
But the reality is there are actually many different strategic pathways into property.
And one of them is called rentvesting.
Rentvesting isn’t the right strategy for everyone. But for some first home buyers, it can be a powerful way to get their foot on the property ladder sooner.
In this blog post, I want to explain what rentvesting is, share how I used this strategy to buy my first property, and help you understand whether it might be a pathway worth considering for you too.
The moment I realised property is a strategy game...
When I first started thinking about buying property, I wasn’t in a position to buy the kind of home I wanted to live in. My borrowing capacity was limited, I didn’t have a huge amount of savings, and like many people in their twenties, I was still figuring out my career and finances.
But I had become fascinated with property and personal finance. I was reading every book I could find, attending seminars, and trying to understand how the whole system worked.
One day I remember driving down the Gold Coast Highway with my boyfriend (who is now my husband) and saying to him:
“I think we should buy a property.”
He looked at me and said, “Yeah… but buying property is hard.”
And I remember replying with something that has stuck with me ever since.
“Buying property isn’t hard. It’s just like playing Monopoly. Once you understand the rules of the game, you can start playing.”
That shift in thinking is what eventually led me to discover the strategy of rentvesting.
What Is Rentvesting?
Rentvesting is when you buy a property as an investment, but continue living where you are right now.
Instead of purchasing a home to live in straight away, you buy a property that you rent out to tenants. The rental income supports the mortgage and all other costs associated with property ownership, while you continue renting or living somewhere that suits your lifestyle.
For many first home buyers - especially those living in higher priced areas - rentvesting can be a practical way to enter the property market sooner without needing to save additional funds to afford a property purchase close to where you live right now. Also, your borrowing capacity to purchase an investment property will likely be different (as future rental income is included in servicing), and can allow your borrowing power to stretch further.
The First Property I Bought
Now I’ll be honest, the first property I bought was not glamorous.
It was a circa 1970s low-set brick house. It had khaki green carpets, there were stickers on the kitchen walls, and I lovingly called her an ugly duckling.
But here’s the important thing... The numbers worked.
The purchase price was within our borrowing capacity, the rental income covered the mortgage repayments and additonal costs - and that was the key.
I wasn’t buying the property based on emotions - there was no mentally figuring out where to position the couch in the lounge room... I was buying it because it made sense financially.
How I Chose The Property
One of the tools that helped me stay focused during the search process was something I created called a property criteria sheet. These days I call it a property wish list, but not matter the name, it's a structure that's very methodical (and emotion-free).
I knew:
the price range I was targeting
the rental income the property needed to generate
the suburbs I wanted to focus on
the amenities that needed to be nearby
the type of tenant I wanted to attract - so things like access to public transport, shops, parks and everyday conveniences were really important.
This approach made the search process much simpler.
Instead of getting emotionally attached to properties, I kept asking one simple question:
“Does this property meet the criteria?”
The Pros of Rentvesting
Like any strategy, rentvesting has advantages and trade-offs. Here are some of the potential benefits for first home buyers:
Pro #1 You may be able to buy in a location you can actually afford
Instead of stretching yourself financially to buy where you currently live, rentvesting allows you to purchase in a location that fits your borrowing capacity.
Pro #2 You can potentially enter the property market sooner
Rather than waiting years trying to save a larger deposit, some buyers are able to purchase earlier.
Pro #3
You can start building an asset while living where you want
Rentvesting allows you to accumulate an asset while still living somewhere that works for your lifestyle, work, or social life.
Pro #4 The purchase decision becomes more numbers-based
Because you’re not buying the property to live in, decisions tend to focus on fundamentals like:
purchase price
rental income
location demand
long-term growth potential
This can reduce the emotional rollercoaster that often comes with buying property.
Pro #5 You develop valuable property investing skills
Rentvesting can also be an opportunity to learn what it takes to become a property investor and landlord.
Over time you’ll learn about things like:
leases
inspections
property management
maintenance responsibilities
The Cons of Rentvesting
Of course, rentvesting also comes with responsibilities.
Here are some of the realities to be aware of.
Con #1 You may need to buy in an unfamiliar area
Because affordability is often a factor, you might need to purchase in a suburb you’re less familiar with.
This means doing more detailed research and due diligence before buying.
Con #2 Being a landlord requires attention
Even if you have a property manager, you’ll still need to stay across things like:
inspection reports
rental income
lease renewals
maintenance issues
property manager instructions
Con #3 The property you buy isn’t your home
For some people this is the biggest downside.
The first property you purchase may not be somewhere you plan to live.
However, some buyers see this as a strategic step — building equity first and then using that equity to buy their home later.
Con #4 You need a financial buffer
Like any property owner, it’s important to have a buffer or maintenance fund set aside to cover unexpected repairs or costs so the property remains safe and habitable for tenants.
Is Rentvesting The Right Strategy For You?
Rentvesting can be a powerful pathway for someone who:
wants to enter the property market sooner
can’t afford to buy where they currently live
is comfortable becoming a landlord
is willing to think strategically about property
But it’s not the right pathway for everyone.
Some first home buyers are very clear that they want their first property to be their home. And that’s completely valid too.
The key thing to understand that there isn’t just one way to buy your first property. There are multiple pathways. Rentvesting is simply one strategic option.
Another Lesson
One of the biggest lessons I’ve learned over the years is that buying property becomes much easier when you understand the different strategies available.
When you realise there isn’t just one door into the market, you can start thinking much more strategically about what might work for your situation. And rentvesting is just one of those pathways.
Want Help Figuring Out Your Best Pathway?
If you’re a first home buyer trying to figure out how to make buying property possible, this is exactly what I help people do inside my program The First Home Finance Formula.
Inside the program, I walk you through the different strategic pathways into property and help you build a plan that works for your finances, goals and lifestyle.
You can join the waitlist using the link here.
Because buying your first property isn’t about luck. It’s about understanding the rules of the game, and learning how to play.
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