Is Renvesting suitable as an alternative strategy?

Rentvesting is a strategy which has been used by many as an alternative method for creating wealth through residential property. This type of strategy has been most popular with first time property buyers, as well as those wanting to live their desired lifestyle whilst committing to creating long term wealth through the power of residential property.

Rentvesting deviates from the traditional ‘buy a home first, then 'buy an investment property later’ approach, but it has merit and has been considered by many modern Australians.

In simple terms, the rentvestor rents where they want to live, at the same time they become a landlord themselves for property they own. This goes against conventional thinking of buying your own home before you start investing... however the reality is that our strong economic environment continues to drive this type of behaviour as property prices continue to climb.

A rentvestor builds their asset base independently of home ownership until such time as they can afford their much sought-after dream home.

Like any strategy, there are pros and cons, so lets take a closer look at some considerations which may help you determine if this strategy is right for you.



It can be difficult to weigh up the pros and cons of rentvesting as everyone's situation and lifestyle is different.  The best thing you can do is to jot down your own pros and cons and work out what your bigger picture is, and consider talking to a professional to confirm or to challenge your thinking.

Remember, you can't eat an elephant with one bite. Sometimes it takes small bites (steps) to achieve your bigger picture. Rentvesting offers the flexibility to invest in a proven asset (residential property) to create long term wealth, whilst maintaining a flexible lifestyle.

Food for thought perhaps..!!

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.