AU Rentvesting Calculator

Calculate the monthly cost of rentvesting — renting where you want to live while owning an investment property. Compare wealth outcomes vs buying locally, model negative gearing tax benefits, and plan your portfolio exit strategy. All figures in AUD.

$
$
$
$
%
$
Monthly Cost of Rentvesting
A$3,802
Your rent + investment mortgage − rental income received
Your Rent (where you live)
A$3,000/mo
Investment Mortgage
A$3,185/mo
Rent Received
A$2,383/mo
vs. Buying Where You Live
Save A$1,221/mo
Stamp duty on QLD investment property: A$22,275. Loan: A$520,000 (20% deposit).

Compare total wealth built: rentvesting (investment equity + savings invested) vs buying your own home (home equity only).

years
%
%
Rentvesting Wealth (10yr)
A$735,983
Investment equity + savings invested
Own Home Equity (10yr)
A$932,884
Home value: A$1,622,737
Investment Property Value
A$962,159
Investment Property Equity
A$524,691

The rentvesting ladder: use equity from property 1 to buy property 2. Eventually use combined equity to buy your dream home.

$
$
Property 2 Loan (80% LVR)
A$400,000
Property 2 Monthly Mortgage
A$2,450
Property 2 Monthly Rent
A$1,820
Property 2 Cash Flow
-A$630/mo
Stamp duty: A$22,080
Combined portfolio: A$1,150,000 in assets. Combined monthly cashflow: -A$1,431/mo (before your rent and tax benefits).

How to Use This Rentvesting Calculator

Enter Your Monthly Rent (what you pay where you want to live), the Investment Property Price and Weekly Rent (what you'll earn), your Deposit, and the Equivalent Home Price (what it would cost to own in your preferred area). The calculator instantly shows your net monthly cost of rentvesting versus buying locally.

Use Advanced to compare 10-year wealth outcomes between strategies, calculate your negative gearing tax refund at your marginal rate, and understand the lifestyle advantages. Use Pro to model the full portfolio ladder (properties 1 and 2), plan your exit into a dream home, and stress-test dual risks.

Rentvesting Formula

Monthly Net Cost = Your Rent + Investment Mortgage − Rental Income Received

Stamp Duty (investment property — state rates apply, no concessions)

Negative Gearing Benefit:
Annual Loss = (Mortgage Interest + Expenses + Depreciation) − Annual Rent
Tax Refund = Annual Loss × Marginal Tax Rate

After-Tax Cost = (Monthly Mortgage − Monthly Rent) − Tax Refund ÷ 12

Example (Sydney rent $3,500/mo, Brisbane investment $650K, $550/wk rent):
Net cost = $3,500 + $3,210 − $2,383 = $4,327/mo
vs. Buying in Sydney at $1.2M: $6,050/mo mortgage

Rentvesting Example — Sydney to Brisbane

Sam: Renting in Surry Hills, Owning in Kelvin Grove

ItemRentvestingBuying in Surry Hills
Property Price$680,000 (Brisbane)$1,300,000 (Sydney)
Deposit (20%)$136,000$260,000
Monthly Mortgage$3,374 (Brisbane)$6,457 (Sydney)
Monthly Rent Paid$3,200 (Sydney)
Monthly Rent Received−$2,557 (Brisbane)
Net Monthly Cost$4,017$6,457
Tax Refund (37% MTR)−$450/mo$650/mo (PPOR deduction)
Effective Monthly Cost$3,567$5,807

Sam saves $2,240/month while still building equity in Brisbane, where capital growth has averaged 8%/year from 2020–2025.

Negative Gearing and Depreciation

Australia's negative gearing rules allow investment property losses (when expenses exceed rent) to be offset against other income. Combined with building depreciation claimed on a quantity surveyor report, a typical Brisbane investment property at $650,000 might generate $8,000–$15,000 in annual deductions — returning $2,960–$5,550/year to a 37% MTR investor.

A depreciation schedule costs $700–$1,000 from a quantity surveyor but typically unlocks $5,000–$15,000/year in additional deductions for new or recently renovated properties — the single best documentation investment for rentvesters.

Frequently Asked Questions

Rentvesting means renting where you want to live (inner city, coastal, near work) while buying an investment property in a more affordable growth suburb or regional area. You build property wealth without sacrificing lifestyle — and the tenant partially pays your mortgage. It emerged as a popular strategy when Sydney and Melbourne prices made buying in desirable areas unaffordable for first and second home buyers.
No. The FHOG and stamp duty concessions require you to live in the property as your principal place of residence. If you buy as an investor, you pay full investment stamp duty rates and don't receive any first-home buyer grants. However, you gain negative gearing benefits which first-home buyers living in their property don't get.
When you sell the investment property, CGT applies to the profit (sale price minus purchase price minus costs). If you hold for 12+ months, only 50% of the gain is taxable (the 50% CGT discount). At the 37% marginal rate, the effective CGT rate on a long-term gain is 18.5%. Unlike your primary residence, investment properties have no main residence CGT exemption.
Yes — all interest on the investment property loan is deductible, along with property management fees (8-10%), council rates, landlord insurance, maintenance, repairs, and depreciation. The rent you pay where you live is not deductible (it's a personal expense). This asymmetry is what makes rentvesting tax-efficient compared to buying and living in an expensive home.
Common exits: (1) Sell the investment property after 12+ months for the 50% CGT discount and use proceeds as a deposit on your dream home. (2) Use accumulated equity via a cross-collateralisation loan without selling. (3) Keep the investment property and use its equity (accessed via refinance or separate equity loan) as the deposit. Exit timing should consider CGT, stamp duty on the new purchase, and interest rate environment at exit.

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