Why My Neighbours Chose Rentvesting—And Why It Might Be Smarter Than Buying Your Dream Home

Posted by Rhiannon Kentish

Rentvesting is one of the fastest-growing strategies in property investment—and I’ve just had a front-row seat to see how powerful it can be. My favourite neighbours recently moved out, and while I’m a bit annoyed, I’m also seriously impressed by their financial savvy.

I’ve been in the property world for a while, so I understand a smart move when I see one. But that didn’t make it any less frustrating when Kate and her family—who’ve lived in the same apartment complex for over five years—decided to become rentvestors.

We’d grown close over the years: BBQs during the footy, birthday parties, and Kate and I even had our babies at the same time. So when they announced they were moving out, I was gutted.

The Rentvesting Strategy Explained

So, what is rentvesting exactly? In simple terms, rentvesting is when you rent where you want to live and buy where you can afford to invest.

Kate and her partner originally bought a two-bedroom unit in Wentworth Point. But after having their baby and realising they needed more space, they didn’t upgrade their home—they became renters themselves.

They moved across the street into a spacious three-bedroom rental with a massive living area, study nook, and huge balcony. Instead of staying cramped, they prioritised lifestyle AND long-term wealth. Now, instead of just popping downstairs to borrow milk, I have to walk five minutes.

Rentvesting Strategy: The Financial Breakdown That Makes Sense

Here’s why their decision makes perfect financial sense:

Their investment property now has a tenant paying $850 per week
They’re paying $950 per week for their larger rental
The difference is $100 per week

Now here’s the kicker… with property investment tax deductions—like depreciation and mortgage interest—they’re only out of pocket about $80 per week.

As my neighbour joked, they’re probably saving that $80 by removing my access to their fridge!

The Benefits of Rentvesting

Their situation highlights why rentvesting has become such a popular strategy:

1. Live Where You Want, Invest Where You Can Afford

Can’t buy in your dream suburb? Rentvesting lets you enjoy lifestyle perks while still gaining property market exposure.

2.Maximise Tax Advantages

Investment properties come with substantial tax benefits that your own home doesn’t offer:

Deductions on mortgage interest
Depreciation claims
Property management and maintenance deductions
Insurance and council rates

3. Greater Lifestyle Flexibility

As your life circumstances change (like having a baby!), rentvesting gives you the flexibility to move without the costs and hassles of selling property.

4. First Owner Benefits

Had my neighbours bought their investment as brand-new first owners, they could’ve accessed additional tax perks—something to keep in mind if you’re starting your journey.

5. Potential for Higher Returns

High-growth areas don’t always align with high-lifestyle suburbs. Rentvesting allows you to invest for capital growth or rental yield while living where you feel happiest.

Is Rentvesting Right for You?

While I miss having my mates just a staircase away, I can’t deny their strategy is rock solid. They’ve:

Enter the property market
Upgrade their living situation
Minimize their out-of-pocket expenses
Set themselves up for long-term wealth creation

If you’ve been priced out of the suburb you love, or the home you can afford doesn’t meet your lifestyle needs, rentvesting could be the answer.

Just be prepared to annoy your neighbours when they realise how smart you’ve been.

Just be prepared to annoy your neighbours when they realise how smart you’ve been—and when they have to walk five minutes to raid your new fridge!

Curious about how rentvesting could work for your situation? Join our game-changing Rentvesting Event on April 29, 2025, where we’ll break down the numbers and show you how to make this strategy work for you. Click Here.

Posted by Rhiannon Kentish, on 15th Apr 2025