The short answer
- Rentvesting means renting where you want to live and buying an investment property where you can afford to.
- It can get you into the market sooner, with rent helping to pay the loan.
- But in SA, buying an investment first means losing first home buyer benefits: the First Home Owner Grant, stamp duty relief, the First Home Guarantee and the super saver scheme.
- Tax rules for investors changed in 2026, which affects the numbers on established properties.
- Work out both paths, including what you'd give up, before you decide.
What is rentvesting?
Instead of buying a home to live in, you keep renting in the area you love and buy an investment property somewhere more affordable. Your tenant's rent helps cover the loan, and you build equity while keeping your lifestyle.
It's popular with people who want to live close to the city or the beach, where prices are highest, but still want to get a foot in the property market.
The case for rentvesting
- Live where you want. Your lifestyle isn't limited to where you can afford to buy.
- Buy where the numbers work. You can choose an area for its price, rental demand and growth prospects, not your commute.
- Rent helps pay the loan. Lenders count part of the expected rent as income, which can help your borrowing power.
- Tax deductions. Interest and running costs on an investment property can be tax-deductible, within the rules.
- Flexibility. Renting makes it easier to move for work or a change in life.
What you could give up in SA
This is the part many people miss. For contracts signed from 13 February 2025, if you or your partner have ever owned residential property in Australia, even one you never lived in, you can't get SA's First Home Owner Grant or first home buyer stamp duty relief. Federal schemes have their own ownership rules too.
| First home buyer benefit | Buy a home first | Rentvest first |
|---|---|---|
| SA First Home Owner Grant (up to $15,000 on a new home) | Available if eligible | Lost once you've owned property |
| SA stamp duty relief (new homes and land) | Available if eligible | Lost once you've owned property |
| First Home Guarantee (5% deposit, no LMI) | Available if eligible | Not available until 10 years after you last owned property |
| First Home Super Saver Scheme | Available if eligible | Not available once you've owned property |
Sources: RevenueSA, Housing Australia, ATO. If your partner has owned property, that can affect you too.
Example: what that can mean in dollars
Two eligible first home buyers, each looking at a $600,000 property in Adelaide.
Buys a new home to live in
| Deposit (5%, First Home Guarantee) | $30,000 |
| Stamp duty, with first home buyer relief | $0 |
| Upfront, before other costs | $30,000 |
May also get the $15,000 First Home Owner Grant.
Buys an established investment
| Deposit (10%, with LMI) | $60,000 |
| Stamp duty at general rates | $26,830 |
| Upfront, before LMI and other costs | $86,830 |
When they later buy a home to live in, they'll pay full stamp duty on that too.
Example only. Stamp duty uses RevenueSA's general rates. Lender deposit requirements for investment loans vary. Excludes legal, inspection, government and lender fees.
The 2026 tax changes for investors
Tax deductions are part of the rentvesting maths, and the rules changed in the 2026–27 Federal Budget:
- Established properties bought after 7:30pm AEST on 12 May 2026: from 1 July 2027, rental losses can only be offset against residential property income and gains, not your wages.
- New builds can still be negatively geared.
- Capital gains tax: from 1 July 2027, the 50% discount is replaced by an inflation-based discount, with a minimum 30% tax rate on gains.
An investment property is also subject to capital gains tax when you sell, while your own home generally isn't. Talk to your accountant about how this applies to you. Source: Treasury. More in our investment property guide.
Other costs rentvestors pay
- Full stamp duty on the investment, as first home buyer relief only applies to a home you'll live in.
- Land tax if the combined site value of your taxable land is over $936,000 in 2026–27. Source: RevenueSA
- Running costs such as landlord insurance, property management, repairs and council rates.
- Vacancies, when there's no rent coming in.
- Your own rent, which keeps going up with the market.
Who rentvesting can suit, and who it may not
It can suit you if
- You want to live somewhere you can't afford to buy yet.
- You're likely to move for work in the next few years.
- You're not eligible for first home buyer benefits anyway, so there's less to give up.
Think carefully if
- You'd qualify for the grant, stamp duty relief and the 5% deposit scheme on a new home in SA. That can be worth tens of thousands of dollars.
- You want the security of knowing you won't have to move when a lease ends.
- Your budget relies on negative gearing on an established property bought after May 2026.
There's no right answer for everyone. The best move is to compare both paths side by side, including the benefits you'd give up, before you commit.
Information is general and correct as at October 2026. We're not tax advisers, so speak to your accountant about the tax side. Scheme rules and lender policies change.