Rentvesting: The Unconventional Path to Property Ownership

That Home Loan Hub

Feeling priced out of your dream neighbourhood? You're not alone. Across New Zealand, aspiring homeowners face the harsh reality of skyrocketing property prices in our most desirable cities. But what if there's another path to property ownership that doesn't require million-dollar mortgages or sacrificing your lifestyle?
Rentvesting – renting where you live while investing in property elsewhere – is changing how Kiwis think about entering the property market. This approach makes perfect sense when you break it down: Why stretch yourself financially to buy in Wellington, Auckland or Queenstown when you could maintain your current lifestyle while building wealth through property in more affordable regions? Picture continuing to rent your perfect apartment close to work, friends and favourite cafés, while simultaneously owning a cashflow-positive investment property in places like Palmerston North, Levin or Invercargill.
The beauty of rentvesting lies in its flexibility and financial strategy. Your tenants help pay your mortgage while you build equity and potential capital growth. For many first-home buyers, young professionals, families waiting for the right school zone timing, and new migrants, this approach provides an achievable entry point to the property ladder. While there are important considerations – managing both rent and mortgage payments, understanding investment loan structures, tax implications, and landlord responsibilities – many find the benefits outweigh these challenges.
I've seen this strategy transform the financial trajectory for clients who thought homeownership was years away. One professional Wellington couple, frustrated by local prices, purchased a modern, tenanted townhouse in Whanganui while continuing to rent in the capital. Today, they're building equity and planning their second investment property. Remember, renting isn't "throwing money away" if you're using that time to grow your wealth elsewhere. Curious if this could work for you? Let's run the numbers together and explore what's possible for your property journey.

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Chapters

1. Introducing Rentvesting (00:00:00)

2. Pros and Considerations (00:01:17)

3. Real-Life Success Story (00:02:54)

4. Who Benefits from Rentvesting (00:03:30)

5. Final Thoughts and Invitation (00:04:18)