Buying Property While Renting in Another City

Q: Can I get FHB Guarantee for an investment property?

No — FHB Guarantee owner-occupied only.

Q: How much extra deposit needed for investment vs owner-occupied?

Investment 20-25% deposit (vs 5-20% OO). Rates 0.2-0.5% higher.

Q: Will my rent payment reduce borrowing capacity?

Yes — rent payment counts as expense; some lenders reduce serviceability further.

Q: Best cities for rentvesting from Sydney?

Brisbane (growth), Perth (catching up), regional NSW (yield/growth mix).

Who this guide is for

Australians wanting to rent in their primary city (typically Sydney) while buying investment property elsewhere — often regional NSW, Brisbane, or Perth.

Sydney professionals priced out of their preferred suburbs
Investors targeting Brisbane/Perth growth while staying in Sydney
FHBs choosing investment over owner-occupied due to budget
South Asian families pooling income for investment elsewhere

The local picture

Rentvesting is a valid strategy but has tradeoffs. You miss FHB schemes (designed for owner-occupiers). Lender serviceability calculations include your rent payment as expense. Tax treatment is different from owner-occupied.

How Mortgagefy helps locally

Mortgagefy works with rentvestors regularly. We model the strategy properly, identify lenders flexible with rentvesting, and coordinate with accountants for tax structure.

Free advice.

How it works — 4 simple steps

Free rentvesting chat

20-minute call about your situation and target investment city.

Compare lender options

We identify lenders flexible with rentvesting strategy.

Application support

We coordinate the investment loan and rental documentation.

Acquire the investment

You build wealth via investment while renting.

Frequently asked questions

Can I get FHB Guarantee for an investment property?

No — FHB Guarantee is for owner-occupied first homes only. Rentvestors miss this benefit.

How much extra deposit needed for investment vs owner-occupied?

Investment loans typically require 20-25% deposit (vs 5-20% owner-occupied). Investment rates are also typically 0.2-0.5% higher.

Will my rent payment reduce borrowing capacity?

Yes — your rental payment counts as an expense. Some lenders also reduce serviceability based on assumption you'll always be renting somewhere.

Best cities for rentvesting from Sydney?

Currently popular: Brisbane (strong growth), Perth (catching up after lag), regional NSW (Newcastle, Wollongong, Central Coast). Each has different yield/growth profiles.

Should I rentvest or wait to afford Sydney?

Depends on Sydney property growth vs your savings rate. Often rentvesting builds wealth faster than waiting for Sydney affordability. We model both.

Talk to us about rentvesting

Free 20-minute call about your strategy.

Start Your Free Assessment Call 0432 634 648

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Buying Property While Renting in Another City: Rentvesting Strategy