Rent-Vesting Explained

The new Terrigal Boardwalk opened on 14 April 2021 and provides accessible pedestrian access around the headland between the Terrigal Beach and The Haven.

Rent-Vesting Explained:

Chasing the great Australian dream of homeownership remains high on many wish lists, even in the face of  increasing house prices and the rising cost of living. An increasingly popular strategy to achieve the great Australian dream is Rent-Vesting. In this blog post we’ll delve into the concept of what exactly rent-vesting is and weigh up its advantages and disadvantages.

Understanding Rent-Vesting:

Rent-vesting put simply, is renting a property where you’d like to live while simultaneously owning a more affordable investment property. This innovative approach offers a viable solution for Australians who find themselves unable to purchase property in a suburb they’d like to live in due to current market conditions. Rather than investing in the property they envision living in, rent-vestors choose to rent a property in a preferred area while acquiring a more budget-friendly investment property elsewhere. The rental income generated from the investment property often covers a significant portion or all of the expenses, making the financial aspect more manageable.

With long queues at open houses becoming a common sight, the trend is anticipated to persist, particularly with recent interest rate increases. At the time of publishing this article, the average weekly rent for a house on the Central Coast is $660 or in Sydney the combined house and unit average is $826 per week, according to SQM Research.

Three Key Benefits of Rent-Vesting:

Rent-vesting offers a number of advantages, providing Australians with the flexibility to live within their means while pursuing their financial goals. Here are some key benefits:

  1. Flexibility: Renting allows for greater flexibility, enabling rent-vestors to upgrade, downsize, change suburbs or adapt their lifestyles without the constraints of a mortgage.
  2. Early Entry into the Property Market: Rent-vesting allows individuals to enter the property market sooner by acquiring a more affordable property, sidestepping the need to accumulate a larger deposit for their dream home.
  3. Wealth Building: A sound property investment can serve as a catalyst for building a transformative property portfolio, offering the potential to generate wealth and making the dream home purchase more feasible in a competitive market.

Risks of Rent-Vesting:

However, it’s crucial to acknowledge the inherent risks associated with investing in rental property. The property market is unpredictable and there is always the possibility that the investment property may not appreciate in value as anticipated. This is where professional advice, like the advice you would receive from a buyers agent is important. Additionally, investment properties demand ongoing maintenance, however this is often offset by the relief you’d receive in maintenance costs at the rental property in which you’d reside. Despite these risks, many first-time investors find that the benefits of investing in rental property outweigh the uncertainties.

Firsthand Experience:

At Sharp Property Buyers, we not only advocate for rent-vesting as a viable strategy but also have firsthand experience with its success. Members of our own team have utilised this approach to build wealth and achieve their property ownership goals. From navigating the intricacies of property selection to optimising rental income and capital growth, our team has experienced the benefits of rent-vesting firsthand. This personal insight allows us to offer informed guidance and tailored solutions to our clients, drawing from real-life experiences and expertise in the field. As advocates and practitioners of rent-vesting, we understand the strategy intimately and are dedicated to helping our clients harness its potential for financial growth and property ownership success.


In conclusion, rent-vesting has emerged as a compelling strategy for those seeking entry into the property market. By strategically purchasing an investment property in an area with robust rental demand while renting a home in a more desirable location, individuals can reap the benefits of property ownership while maintaining their desired lifestyle. However, thorough research and careful consideration of financial implications are crucial before embarking on this journey. Consulting with a financial advisor, accountant and buyers agent is advisable to determine the suitability of rent-vesting for individual circumstances.

For personalised assistance in navigating the rent-vesting landscape, consider reaching out to our dedicated buyers agent team at Sharp Property Buyers. You can also read more about our wealth creation through investment division here.

Rent-Vesting Explained 1

Disclaimer: The information provided in this blog post is intended for general informational purposes only and should not be considered as professional financial advice. It is essential to seek advice from professionals who can consider all aspects of your financial situation before making any significant financial decisions.

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