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Should you rent and invest or buy a home?

Compare the financial outcome of buying a home vs rentvesting over 5 and 10 years. See monthly costs, equity growth, tax benefits, and net wealth side by side.

Free calculator5 & 10 year outlookBuy vs rentvestTax & equity modelled
Read our full rentvesting guide →

Your Situation

$

Option A: Buy a Home

$
20%
$220,000
20% no LMI
5% 30%
%
%

Option B: Rentvest

$
$
20%
$140,000
20% no LMI
5% 30%
%
$
%
Key Insight

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← All Tools Rentvesting Guide

This calculator provides estimates only and is not financial advice. Individual circumstances vary. Speak to a qualified accountant or financial adviser. Stamp duty uses NSW rates. Tax deductions assume an investment property generating a net rental loss.

Rentvest Saves
$0/mo
over 10 years

Frequently Asked Questions

What is rentvesting?

Rentvesting means renting where you want to live while owning an investment property somewhere more affordable. You get the lifestyle of renting in a premium area while building wealth through a property you can actually afford. The investment property generates rental income, tax deductions, and capital growth. Read our full rentvesting guide for a detailed breakdown.

Is it better to buy a home or rentvest in 2026?

It depends on your numbers. In many Australian capital cities, buying a home at current prices means high mortgage repayments with no tax deductions. Rentvesting often costs less per month and builds more net wealth over 10 years, especially when the investment property is in a high-growth affordable market. Use the calculator above to compare both scenarios with your actual figures.

Can I claim tax deductions when rentvesting?

Yes. When you rentvest, your investment property expenses (interest, council rates, insurance, property management, depreciation) are tax-deductible against your rental income. If the property runs at a loss, you can deduct that loss from your salary income through negative gearing. This tax benefit does not apply to a home you live in.

What are the risks of rentvesting?

The main risks are rental insecurity (your landlord can sell or not renew the lease), missing out on the capital gains tax exemption on your main residence, and the emotional cost of not owning your home. Rent also increases over time, typically 3-5% per year. The financial advantage of rentvesting depends on the growth rate of your investment property outperforming your rent increases.

Rent vs Buy, the Real Maths

Rent vs buy is one of the most loaded questions in personal finance because the answer depends on inputs people don't usually pin down: how long you'll stay, the growth rate of the city you'd buy in, the rent you're paying, and what you'd do with the saved deposit if you didn't buy. The calculator runs both paths over 5 and 10 years so you can compare net wealth at the end.

This calculator factors in mortgage repayments, ongoing ownership costs (rates, insurance, maintenance), rent growth, opportunity cost on saved deposit if invested, and the tax position on the buy side.

The Two Paths Explained

Path one (buy): take out a loan, pay mortgage repayments, plus rates, insurance, maintenance, and stamp duty. Build equity in the property. Path two (rent + invest): pay rent, no ownership costs, save the deposit and the difference between rent and a hypothetical mortgage, and invest it. Build wealth in financial markets or in an investment property bought elsewhere. Whichever path produces more net wealth at year 5 and year 10 is the answer for that scenario.

When Buying Wins

Buying typically wins when you stay 7 plus years in a market growing at 5 percent or better, transaction costs amortise across the hold, and ownership cost is roughly equal to rent. Sydney over a 20-year hold has historically rewarded buyers because the long-run growth has been strong enough to outweigh the transaction costs.

When Renting Wins

Renting wins when you might move within 5 years (transaction costs eat any growth), the buy market is overheated and likely flat, you'd invest the deposit at higher returns elsewhere, or your buy budget is well below where you actually want to live. The classic rentvest play sits here. See our rentvesting page for the full strategy.

What Most Calculators Get Wrong

Three things. First, they assume you actually invest the rental difference if you rent. In reality, most people spend it. Second, they ignore lifestyle costs (commute, school zones, flexibility) which are real if not financial. Third, they don't model the tax position, where investing through a structure (super, investment property) might outperform shares in a personal name. Run this calculator and the growth projection calculator together for a fuller picture.

Rent vs buy is rarely binary. Many investors settle for rent-where-you-want-to-live, buy-where-the-numbers-work, which is the rentvesting play. Read more at rentvesting. Book a free strategy call for a guided walk-through.