With 2025 already halfway through, many first-time buyers and young professionals are still facing the same challenge: the suburb they want to live in isn’t necessarily the one they can afford to buy in.
Enter rentvesting – a strategy that lets you do both. You invest in a more affordable property (usually in a growth area) while renting in the location that suits your lifestyle.
But in today’s market, does rentvesting still stack up? Let’s take a look.
What Is Rentvesting?
Rentvesting simply means renting where you want to live and buying where you can afford, usually with strong potential for capital growth. It’s a strategy that gives buyers a foot in the property market without giving up their preferred lifestyle.
Why Rentvesting Still Works in 2025
High property prices in lifestyle suburbs
In areas like the St George region or inner Sydney suburbs, median house prices remain out of reach for many first-home buyers. Rentvesting lets you live in these areas without overextending financially.
Property ownership builds equity
Even if you don’t live in the property, owning an asset in a growing market can build long-term wealth through capital growth and rental income.
Greater flexibility
Life is unpredictable. Rentvesting gives you the flexibility to relocate for work, travel, or lifestyle changes without being tied to your own property.
Tax benefits
Owning an investment property opens the door to tax deductions that aren’t available on your primary residence, including property management fees, maintenance, and depreciation.
Things to Consider
- Ongoing rent payments: You’ll still need to cover your rent, alongside mortgage repayments, so cash flow matters.
- Lifestyle trade-offs: You’re not living in your own home, which can feel like a sacrifice for some.
- Market research is key: A rentvesting strategy only works if you buy in a location with strong fundamentals, not just because it’s cheaper.
Is It Right for You?
Rentvesting can be a smart move for:
- First-home buyers wanting to enter the market without compromising lifestyle
- Professionals relocating frequently
- Savvy investors looking for long-term capital growth
It’s not a one-size-fits-all strategy, but for many buyers in 2025, it still makes a lot of sense.
If you’re considering this strategy, it’s important to buy wisely. Location, property type and long-term potential matter more than ever in today’s market.
For a deeper dive into what makes a smart investment in 2025 – and what to avoid – check out John McGrath’s latest advice for investors.
Thinking about buying your first property but not sure where to start? At Team Etchells, we are always happy to talk through your options or connect you with trusted local mortgage experts.
Donna Etchells - McGrath Estate Agents 