Is RentVesting Worth It in 2025? Let’s Talk About What Really Matters
I had a conversation the other day with a friend over coffee who asked me this:
“Should I just buy a home to live in? Or should I rent and invest instead?”
Now, you might be thinking the same thing—and I get it. It feels like renting means “wasting money,” and owning your home feels like the ultimate financial goal.
But here’s the thing most people don’t realise (and hardly anyone talks about):
👉 The real cost of buying your own home isn’t just the mortgage—it’s what it does to your borrowing power.
Let’s break this down with a real-life example.
Scenario: Same income, same savings—different strategy
Let’s say you’ve got:
- $120,000 in cash
- You earn $150,000 a year (before tax)
- You currently pay $500/week in rent
- And you manage to save around $4,000/month after rent and living expenses
You’re trying to decide between:
| Option | Description | Outcome (after 20 years) |
|---|---|---|
| Renting | Keep renting, don’t invest | $1.08M net wealth |
| Buying | Use savings to buy a $700K home | $743K net wealth |
| Rentvesting | Keep renting, and invest in a $550K property instead | $3.31M net wealth ✅ |
Now, sure—those numbers are eye-catching. But let’s not focus on the dollar signs just yet.
Here’s the REAL difference: Borrowing Capacity
When you buy your own home:
- You don’t earn rent, so banks see you as carrying all the debt.
- Your debt-to-income (DTI) ratio spikes early.
- That kills your ability to borrow again.
Even though you might be building equity in that home, you’ve basically locked yourself out of expanding your portfolio for years.
But when you rentvest (rent where you live, and invest elsewhere):
- Your investment earns rent, which offsets the debt.
- Your DTI stays lower.
- You can keep borrowing and grow your portfolio faster.
Why this matters more than cash flow
Yes, rentvesting can often look better on paper because the cash flow looks stronger. But the real kicker?
Buying your home first can shrink your borrowing power and limit your future options.
And that’s a hidden cost nobody tells you about.
It’s not just about having money in the bank—it’s about whether the bank will lend you more in the future.
So what should you do?
Honestly? There’s no “one right answer.”
If owning your own home brings you emotional security, that’s valuable too.
But if your goal is to build wealth and create financial freedom sooner—then rentvesting deserves a serious look.
You can always buy your dream home later—with far less financial pressure—once your portfolio is doing the heavy lifting for you.
In fact, a lot RentVestors main objective is to build up enough wealth to buy their dream home - in cash!
Ready to map out your own RentVesting vs Home Ownership game plan?
If today’s example got you thinking... you’re not alone.
We offer free, personalised strategy sessions with one of our expert RentVestor Coaches—designed to help you compare your options clearly, based on your exact numbers and goals.
These sessions are 100% complimentary, but they're not a fit for everyone. So we’ll start with a quick call to see if it's the right step for you.
Curious to find out?
Click the button below to check your eligibility and book a time that works.
No pressure. Just smart, honest guidance to help you move forward with confidence.
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Final Thought 💭
Property is about playing the long game, and sometimes the smartest move isn’t the one that feels the most comfortable upfront.
So if you’re on the fence, ask yourself:
“Do I want to feel secure now, or build financial freedom that lasts?”
There’s no judgment either way. Just options.
And that’s the most powerful thing you can have.
