If you’ve ever dreamed of living in a desirable location while building wealth through property investment, “rentvesting” might be the perfect strategy for you. It’s a concept that challenges traditional notions of homeownership, offering flexibility and financial growth simultaneously.
Rentvesting is a strategy where you rent a home in a location you want to live but may not be able to afford to buy into. Simultaneously, you purchase property in areas that are more affordable and are primed for capital growth. This approach allows you to enjoy the lifestyle benefits of renting your preferred location without compromising your ability to build wealth through real estate.
Make Rentvesting Work
The key to rentvesting lies in balancing your lifestyle aspirations with sound investment solutions, letting your investment do the work for you.
- Assess Your Financial Situation:
Determine how much you can afford to spend on rent and how much you can allocate for an investment property deposit and ongoing costs. - Property Selection
Identify properties to invest in that are in areas with strong rental yields and positioned for long-term capital growth potential. Find our more about strategic property selection process. - Rent in Your Ideal Location:
Choose a rental property in the area you want to live in. The rent you pay will likely be significantly less than the cost of a mortgage in this area. - Leverage the Investment Property’s Income:
The rent you earn from your investment property helps cover your mortgage repayments, making it easier to manage holding costs. Often, rental income combined with tax benefits like negative gearing can significantly offset expenses. - Repeat the Process:
As your investment property increases in value, you can use the equity to fund further property purchases, creating a portfolio over time.
Rentvesting is especially appealing to young professionals and first-time investors who are priced out of buying in their dream location but don’t want to delay building wealth – particularly where in Australia we have seen the median house price increase by 41% nationally over the past 5 years (CoreLogic, median capital city house price, 2019, 2024). OpenCorp client Matt is a prime example of a ‘rentvestor’, watch the video below as he tells his story in building a property portfolio, wealth accumulation, career shifts and debunking myths along the way.
Rentvesting offers several benefits for those looking to maximise their financial potential. By investing in areas with better returns, your money works harder for you. Properties with strong rental yields and potential for capital growth can generate wealth faster than a single high-priced property – plus through rentvesting you’re enjoying the lifestyle benefits of prime locations without overstretching your finances.
Is Rentvesting Right for You?
Rentvesting isn’t a one-size-fits-all strategy, but it’s a modern take on property ownership which prioritises financial growth without the sacrifice of lifestyle.
If you’re considering rentvesting, partnering with an experienced property strategist can make a world of difference. At OpenCorp, we’ve helped countless clients understand the market and identify high-performing investment properties.
If you’re thinking rentvesting might be the right move for you, start the discussion with us today and book an obligation free discovery call.
