Rentvesting on the Rise: How Australians Are Buying Investment Properties While Renting at Home

A growing number of Australians are choosing to buy investment properties in affordable markets while continuing to rent in their preferred locations -- a strategy commonly known as rentvesting. According to reporting by Australian Broker on 22 April 2026, this trend is creating new pathways for both renters and first-home buyers who cannot yet afford to buy where they live.

Why Rentvesting Is Growing

In cities like Sydney and Melbourne, median property prices remain out of reach for many first-time buyers. But markets such as regional Queensland, outer suburbs of Brisbane, and parts of South Australia still offer entry-level investment properties at more accessible price points.

By purchasing in a growth market and renting out the property, rentvestors can:

• Build equity without needing to leave their preferred rental suburb
• Access negative gearing tax benefits on the investment property
• Start their property investment journey earlier rather than waiting to save for a home in an expensive suburb

For many young professionals and migrants who want to live near city centres but cannot yet afford to buy there, rentvesting offers a pragmatic entry point into the property market.

The Lending Challenge for Rentvestors

Investment property loans come with meaningfully stricter criteria than owner-occupied loans. Key differences include:

For self-employed rentvestors or those with non-traditional income structures -- freelancers, restaurant owners, small business operators -- major banks often apply even tighter buffers that can make approval difficult regardless of actual cash flow.

How Non-Bank Lenders Can Help

MPFG Capital offers investment loan products designed to accommodate borrowers who fall outside major bank criteria:

• Alt Doc income assessment for self-employed investors -- using BAS statements, accountant letters, and bank statements rather than tax returns alone
• LVR up to 80% without requiring Lenders Mortgage Insurance (LMI)
• Solutions for declined applicants -- borrowers turned away by the Big Four due to serviceability buffers or income type
• Investment loans across all capitals -- our brokers work across Melbourne, Sydney, and Brisbane

Is Rentvesting Right for You?

Rentvesting works best when specific conditions align:

• Rental yield in the target market covers or nearly covers loan repayments (neutral or near-neutral gearing)
• You plan to hold the investment property for at least five to seven years to ride out market cycles
• Your own rental situation is stable and your costs are predictable
• You have a clear exit strategy -- whether selling, refinancing, or eventually moving in

Before proceeding, it is important to model the full cost picture: loan repayments, property management fees, maintenance, council rates, insurance, and potential vacancy periods.

The rentvesting strategy has helped many Australians build wealth even in expensive cities -- but it requires careful financial planning and the right lending structure from the outset.

This article is general information only and does not constitute financial or investment advice. Consult a licensed financial adviser before making investment decisions.