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Rentvesting calculator
Rentvesting means renting where you want to live and buying an investment property somewhere more affordable. Use this calculator to see the real weekly cost of a rentvesting strategy — your repayments, the investment property's cashflow, its yield, and what it all costs you each week. General information only, not financial advice.
What is rentvesting?
Rentvesting is a strategy where you rent the home you actually want to live in — often in an expensive inner-city or lifestyle suburb — while buying an investment property in a more affordable area that offers stronger rental yield or growth potential. It's become one of the most popular ways for Australians to get into the property market when the suburbs they want to live in are out of reach to buy.
Instead of stretching your budget to own where you live, you keep lifestyle flexibility as a renter and put your borrowing power toward an asset that earns income and (ideally) grows in value.
How the calculator works
It estimates three things and combines them into your real weekly housing cost:
- Loan repayment — principal & interest on the investment loan over 30 years at the rate you enter.
- Investment cashflow — the property's weekly rent minus the loan repayment and holding costs. A negative number means you top it up each week (negative gearing); a positive number means it pays for itself.
- Your total weekly cost — the rent you pay to live where you want, plus any weekly top-up the investment needs (or minus any surplus it produces).
It deliberately keeps things simple: it doesn't model tax deductions, depreciation, capital growth, vacancy or buying costs. Treat it as a first-pass sanity check, then dig into a specific suburb's real numbers.
Is rentvesting right for you?
It can work well if…
- You want to live somewhere you can't yet afford to buy
- You value lifestyle flexibility and mobility
- Affordable, higher-yield areas suit your budget better
- You're comfortable being a landlord and a tenant at once
Think twice if…
- You want the security and emotional value of owning your home
- You'd struggle to cover a negatively-geared shortfall
- You may want to move into the property soon (CGT & loan implications)
- You haven't factored in buying costs, vacancy and rate rises
Find a rentvesting suburb
The hard part of rentvesting is picking the right investment area — affordable enough to buy, with solid yield, tenant demand and acceptable risk. Use PropertyScout to search any Australian suburb for median price, rent, gross yield, renter demand and risk flags, or compare suburbs side by side before you commit.
Rentvesting FAQ
Is rentvesting a good idea in Australia in 2026?
It can be, particularly while many capital-city suburbs are priced out of reach to buy. Over half of first-home buyers now consider rentvesting. Whether it suits you depends on your budget, lifestyle priorities and tolerance for being both a tenant and a landlord. This is general information, not financial advice.
Can I get the First Home Owner Grant if I rentvest?
Generally the First Home Owner Grant requires you to live in the property, so buying purely as an investment usually means you don't qualify. Some buyers move in first to satisfy the requirement, then rent it out later. Rules differ by state — check your state revenue office.
Does rentvesting affect capital gains tax?
An investment property is generally subject to capital gains tax when you sell, unlike your main residence. If you later move into it, the CGT treatment changes. Speak to a qualified accountant about your situation.
How much rent should the investment property cover?
Use the gross yield and cashflow figures above as a starting point. Many rentvestors accept a small weekly shortfall in exchange for buying in a stronger area — but always stress-test it against higher interest rates and a few weeks of vacancy.
PropertyScoutAU is property research software — not a buyer's agency, mortgage broker or financial adviser. This calculator provides general information and simplified estimates only and does not account for tax, depreciation, capital growth, vacancy, buying costs or your personal circumstances. Always seek independent financial, tax and lending advice before making any property decision.