Rentvesting — renting where you live, investing where it works
What rentvesting is, how the finance works, and the trade-offs to weigh. General information, not financial or tax advice.
9 June 2026 · By Foundation Finance · Last reviewed 10 June 2026
What we can — and can’t — advise on
Foundation Finance operates as a credit representative under an Australian Credit Licence. We can advise on the credit product — the loan itself, how it’s structured, and which lenders suit your situation. Whether a self-managed super fund, trust or company structure is right for you is financial product, tax and legal advice, which sits with your licensed financial adviser, accountant or solicitor. This page covers the credit side only.
Rentvesting means renting the home you want to live in while buying an investment property somewhere more affordable. It's grown popular with first-home buyers priced out of their preferred suburb. Here's a general overview of the finance side — not financial or tax advice.
How it works
You buy an investment property (often in a more affordable area) and rent it out, while continuing to rent where you actually want to live. The rent you receive helps cover the investment loan; you pay rent on your own home.
Potential upsides
Get into the market sooner, in an area you can afford.
Live where you want without buying there.
Keep lifestyle flexibility (easier to move).
Trade-offs to weigh
You're a tenant in your own home, with the usual renting trade-offs.
You may not be eligible for owner-occupier first-home grants/concessions on an investment purchase — check with a registered tax agent and your state revenue office.
Borrowing to invest magnifies gains and losses; values and rents can fall.
We can structure a rentvesting purchase and compare lenders. Whether rentvesting suits you (and any tax/grant implications) is a question for a registered tax agent and your own judgement. See first home buyers and investment loans, or talk to us.
Who handles what
Getting it right usually means a small team. Here’s who does which part — we’ll gladly work alongside your other professionals.
Us (Foundation Finance)
The loan — structure, features, lender selection, serviceability and the application.
Licensed financial adviser (AFSL)
Whether an SMSF or investing via super suits you, and any financial-product advice.
Registered tax agent / accountant
Your tax position — negative gearing, deductions and CGT for your circumstances.
Solicitor
Legal structures, trust deeds, contracts and asset protection.
Quantity surveyor
An ATO-compliant tax depreciation schedule for your property.
General advice warning: The information on this page is general in nature and factual only. It does not take into account your objectives, financial situation or needs, and is not financial product, tax, credit or legal advice. Tax, superannuation and SMSF outcomes depend on your circumstances — speak to a registered tax agent and a licensed financial adviser before acting. Any estimates or calculator results are indicative only and not an offer of credit, a quote, or a guarantee of approval or savings.
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