What it is and why more first-time buyers are doing it
With interest rates beginning to ease and confidence slowly returning to the property market, many women are taking a fresh look at their homeownership goals. And with the dream of buying in your ideal suburb still out of reach for many, rentvesting is becoming an increasingly popular strategy.
At Penny, we’re seeing more women explore this option, not just as a compromise, but as a smart way to start building wealth without giving up lifestyle, flexibility, or location. Here’s what you need to know.
What is rentvesting?
Rentvesting is a strategy where you buy an investment property in a location you can afford, while continuing to rent in an area that suits your lifestyle.
It’s a practical solution for women who want to get on the property ladder sooner, without having to save for years or move far away from work, friends, or the amenities they love.
For example, instead of saving for a $1M apartment in Sydney, a rentvestor might buy a $800K property in a growing regional market, rent it out to cover some of the mortgage, and continue renting in their current area.
Why more first-time buyers are rentvesting
More buyers are exploring rentvesting because it offers flexibility, a path to financial growth, and more control over their property journey. But like any strategy, it comes with pros and cons:
Flexibility – You’re not locked into living in the property you buy, meaning you can stay closer to work, family, or the lifestyle you love. However, as a renter, you’re still subject to lease terms and the rental market.
Financial Growth – You can start investing sooner by buying in more affordable areas, potentially getting ahead of the market.️ But keep in mind, property values can go down, and if your place sits vacant, rental income may not cover your costs.
Property as an Asset – Your home becomes an investment tool to help you build wealth. But, because it’s not your primary residence, it’s subject to capital gains tax when you sell.
Less Pressure to Compromise – You’re not forced to buy a property that doesn’t fit your needs, you can rent where you want and invest where it makes financial sense. However, switching strategies later may involve additional costs and planning.
Making rentvesting work for you
Rentvesting can work well — but only with smart financial planning and a clear understanding of your goals.
1. Know your numbers
Before you buy, it’s important to understand what you can afford. How much deposit do you need? What are the upfront costs? What happens if your property is vacant?
2. Find the right location
Because you won’t be living in the property, it’s key to focus on areas with strong rental demand, growth potential, and manageable prices.
3. Secure the right loan
Financing an investment property is different from buying a home to live in. You’ll likely need a larger deposit, and rates may be higher.
4. Plan for the future
This isn’t just about buying — it’s about building a long-term investment strategy. That means understanding tax implications, knowing your exit strategy, and thinking about your goals 5–10 years from now.
What First-Time Rentvestors Say
“I had no idea what to expect. Luckily, my partner had bought property before, so I kept asking him what was next, but if I didn’t have him, I would’ve been blindsided every time. Pest and building inspections, title transfers, weird fees I couldn’t name, and it all changed depending on the state. I bought in Adelaide and he’d bought in Queensland, so it was completely different.” — First-time rentvestor & Penny Community member
How Penny Helps
At Penny, we know how confusing it can feel, especially when you’re doing it for the first time and don’t know what you don’t know.
That’s why we built tools and support to make the rentvesting journey easier:
- We calculate all your estimated costs upfront – no more guessing, trawling Google or asking ChatGPT.
- We break it down by state – so you understand the different rules and options in your area.
- We let you know what is happening at every stage – for you, your broker, and your conveyancer, so things don’t slip through the cracks.
- We connect you with vetted professionals – like brokers and financial advisors who understand your goals.
Want to know if rentvesting is right for you? Connect with one of our hand selected consultants through Penny to help you make your next move confidently.
Please note: Penny Pty Ltd may receive commissions, referral fees, or other benefits when you engage with one of the partners or professional consultants through our platform. These fees are paid by the partner, not by you. We only refer to professionals and service providers we believe to be reputable and aligned with your goals. Our referral arrangements do not influence the cost of services to you.
Extra reading
Why ‘rentvesting’ doesn’t work (for most people most of the time) | The Australian
What is rentvesting? | Canstar
Rentvesting on the rise as first-home buyers adapt | Australian Broker News