With property prices continuing to climb across Australia, many first-home buyer find purchasing in their dream location challenging. That’s where rent-vesting comes in—a smart property strategy that lets you rent where you want to live while buying an investment property in a more affordable area.
What is Rent-Vesting?
Rent-vesting is when you choose to rent a home in a lifestyle location you love while purchasing a property elsewhere as an investment. It’s a growing trend among Australians looking to get on the property ladder sooner, without compromising on lifestyle.
Rather than waiting years to save a large deposit or settle for a less desirable area, rent-vesting allows you to start building wealth through property while enjoying flexibility in where you live.
Why More Australians Are Choosing Rent-Vesting
✔ Your Investment Pays for Itself – Rental income from your investment property helps cover the mortgage, reducing your monthly out-of-pocket costs as a first-home buyer.
✔ Enjoy Tax Benefits – As a first-home buyer and investor, you may be eligible for deductions on mortgage interest, depreciation, and property-related expenses, which can reduce your taxable income.
✔ Enter the Market Sooner – Rent-vesting allows first-home buyers to get into the market quickly, benefit from property growth, and build equity over time—even if it’s not your forever home.
Things to Consider Before Rent-Vesting
✔ Capital Gains Tax (CGT) – Investment properties are subject to CGT when sold. Be sure to understand how this affects your long-term gains.
✔ Rental Costs – Your rent should remain manageable to make the strategy work. Crunch the numbers carefully and plan with a financial expert to ensure they align with your goals.
Is Rent-Vesting Right for You?
Everyone’s financial journey is unique, and rent-vesting isn’t the right fit for everyone. At Gold Finance, we take the time to understand your goals and finances to help you make confident decisions. Our expert mortgage brokers can help you structure the right loan and explore whether rent investing is a suitable path for you.
Ready to explore rent-vesting in Australia? Contact Gold Finance—your trusted mortgage broker Australia-wide!