Rentvesting Calculator
Compare three strategies over 5-20 years: buy your own home, rent where you want and invest in property elsewhere, or rent and invest in index ETFs.
Your situation
Before tax, for the person who will own the investment property. Sets the marginal tax rate used for negative gearing and capital gains.
Buy where you live
20.0% of the price.
Applies the state's first home buyer stamp duty concession.
More options
Council rates, insurance and maintenance.
Rentvest
Rent where you want to live. Buy an investment property somewhere cheaper.
About $481 a week in rent.
More options
Rent + invest
Invest your would-be deposit into an index ETF. Contribute the owner-occupier minus rent surplus each year.
After 10 years, highest modelled wealth
$718,782
In this scenario Buy where you live produced the highest modelled wealth, $28,024 ahead of the next option. Based on these inputs. Results change with different assumptions. Not personal financial advice.
- Buy where you live
- $718,782
- Rentvest
- $138,328
- Rent + invest
- $690,758
Buying an investment first may forfeit first home buyer benefits
Wealth over time
Modelled wealth of each strategy, year by year, after selling costs and tax.
- Buy where you liveHome equity after selling cost
- $718,782
- RentvestTax benefit: $61,143
- $138,328
- Rent + investStarting: $185,850
- $690,758
Year 1 cash flow (investment property)
What the investment costs or earns in its first year, before and after the tax effect.
Negatively geared in year 1
- Rent (effective, after vacancy)
- $24,038
- Interest
- -$29,875
- Property management
- -$1,851
- Maintenance
- -$5,000
- Land tax
- $0
- Council rates + water
- -$2,000
- Landlord insurance
- -$1,155
- DepreciationA paper deduction, not cash
- -$7,500
- Taxable rental income
- -$23,287
- Tax benefit at your marginal rate
- $7,452
- Tax owed on positive gearing
- $0
- Cash flow before tax effect
- -$19,475
- After-tax cash flow
- -$12,023
What the model shows
Based on these inputs. Modelled estimates, not predictions.
- In this scenario, Buy where you live produced $28,024 more wealth than Rent + invest at year 10.
- Investment property claimed $61,143 in modelled tax benefits from negative gearing over 10 years.
- Modelled rental property remains cash-flow negative for the full 10 years.
- Worst modelled cash flow year: year 1, -$12,023 after tax. Consider whether you could cover this gap.
- Estimated exit CGT at year 10: $82,405 on $350,661 capital gain (50% discount applied).
- Negatively geared for 10/10 modelled years. Tax refund partially offsets out-of-pocket cash shortfall - it does not eliminate it.
- Owner-occupier upfront cost: $185,850. Investment upfront cost: $118,425. Buying an investment first may forfeit first home buyer benefits - check with your state revenue office.
Stress tests
Wealth after 10 years if rates, vacancy or growth change.
| Scenario | Buy where you live | Rentvest | Rent + invest |
|---|---|---|---|
| Base case | $718,782 (highest) | $138,328 | $690,758 |
| Rates +2% | $696,159 | $82,814 | $851,948 (highest) |
| Vacancy ×2 | $718,782 (highest) | $131,082 | $690,758 |
| Growth -2% | $496,499 | $35,837 | $690,758 (highest) |
Rent + invest assumes you invest, each year, what owning your home would have cost above your rent. When rates rise, owning costs more, so the modelled amount invested grows too. The ETF return is the same in every scenario, and vacancy or growth changes do not affect this strategy.
Year by year
Equity, cash flow, tax benefit and the ETF portfolio for every year modelled.
Year-by-year breakdown
| Year | Home equity | Investment equity | Investment cash flow | Tax benefit | ETF portfolio |
|---|---|---|---|---|---|
| Year 1 | $185,255 | $115,562 | -$12,023 | $7,452 | $220,590 |
| Year 2 | $232,925 | $145,130 | -$11,759 | $7,193 | $258,197 |
| Year 3 | $283,143 | $176,285 | -$11,490 | $6,921 | $298,880 |
| Year 4 | $336,048 | $209,117 | -$11,216 | $6,636 | $342,863 |
| Year 5 | $391,787 | $243,718 | -$10,936 | $6,336 | $390,385 |
| Year 6 | $450,518 | $280,186 | -$10,652 | $6,020 | $441,705 |
| Year 7 | $512,403 | $318,625 | -$10,362 | $5,688 | $497,097 |
| Year 8 | $577,618 | $359,146 | -$10,069 | $5,339 | $556,856 |
| Year 9 | $646,346 | $401,866 | -$9,771 | $4,972 | $621,297 |
| Year 10 | $718,782 | $446,906 | -$9,470 | $4,585 | $690,758 |
Shareable summary
A plain-text snapshot to paste into a note or email.
Rentvesting Calculator - 10 year modelled outlook Buy where you live: $718,782 Rentvest: $138,328 Rent + invest: $690,758 Highest-wealth scenario: Buy where you live ($718,782) Tax benefit claimed: $61,143 CGT at exit: $82,405 Modelled estimates only. Not personal financial advice. https://unpackproperty.com.au/rentvesting
Modelled estimates. Defaults assume an investor rate 0.3% above the owner-occupier rate, 2 weeks vacancy a year, 7.7% property management, $1,100 landlord insurance, 1% maintenance and a 7% ETF return. Capital gains tax uses the 50% discount. Data as of July 2026.
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Rentvesting explained
For illustration only. This tool does not constitute personal financial advice. Grant amounts, caps, and eligibility rules may change. Federal scheme caps shown are for capital city/regional centres and may differ for other areas. Always verify with your state revenue office and Housing Australia, and consider seeking independent financial advice before making decisions.