If you’re a first home buyer in Perth, you’ve probably felt the squeeze between where you want to live and what you can afford to buy.
But there’s a smart solution making waves across WA, it’s called rentvesting, and it’s helping more first home buyers get into the property market sooner, strategically, and on their own terms. Here’s how rentvesting works, why it’s growing in popularity, and how you can make it work for you.
What is Rentvesting?
Rentvesting is a strategy where you:
- Rent a home in a location that suits your lifestyle
- Build or buy an investment property in a more affordable suburb
- Rent that property out to tenants while building long-term wealth
It’s ideal for first-time buyers who want to get into the market now without giving up the lifestyle they love.
Why More First Home Buyers in Perth are Rentvesting
With Perth house prices on the rise, saving for a 20% deposit in your dream suburb can feel out of reach. Rentvesting flips that script by helping you in different ways
- Buy into growth areas where homes are more affordable
- Claim tax benefits from owning an investment property
- Build equity sooner than if you waited to buy your “forever” home
- Stay flexible by continuing to rent where it suits you
According to Housing Industry Association (HIA), Perth’s outer suburbs like Eglinton, Baldivis, and Alkimos are booming with new builds and rental demand, making them perfect targets for rentvestors.
Top Benefits of Rentvesting
1. Enter the Market Sooner
Rather than waiting years to save for a home in an expensive suburb, you can start building wealth now in a suburb where your money stretches further.
2. Leverage Tax Benefits
With the help of a quantity surveyor and tax advisor, you can claim:
- Loan interest
- Maintenance costs
- Depreciation on new builds
- Property management fees
These deductions can improve your cash flow and reduce your taxable income.
3. Depreciation Perks on New Builds
One of the biggest advantages of building an investment home is depreciation. You can claim:
- Capital works deductions (structure, construction)
- Depreciating assets (appliances, flooring, fittings, etc.)
These can amount to thousands in the first few years alone.
(ATO Reference – Depreciating Assets)
4. Low Maintenance Costs
Newly built homes come with builder warranties and minimal repairs, which means less stress and more reliable returns.
5. Live Where You Want, Build Where It Makes Sense
Want to live near the beach in Scarborough or close to work in Leederville? Keep renting where it suits you while your investment property does the heavy lifting elsewhere.
Why Build Instead of Buy Established?
At Emily Rose Homes, we help Perth buyers build investment properties tailored to rentvesting. Compared to buying an older home, building gives you:
- Full depreciation benefits
- Builder warranty
- Custom designs for modern tenant appeal
- Energy-efficient inclusions to increase rental value
- Less maintenance in the early years
You’ll also have the flexibility to design a home that suits your future resale or portfolio goals.
Rentvesting Example
Let’s say you’re renting in Fremantle but decide to build an investment property in Eglinton for $600,000.
- Rental income of ~$600/week
- Tax deductions of $10,000–$15,000 per year
- Depreciation claims on a brand-new build
- Capital growth over time
How Emily Rose Homes Helps First Home Buyers Rentvest
Our team of independent building consultants works with first home buyers across WA to create smart, affordable rentvesting strategies.
We’ll help you:
- Choose the right suburb with rental demand and growth potential
- Design a home that renters will love (and pay more for)
- Pair you with the right builder who understands investment priorities
- Structure your finance with interest-only or investment-focused options
- Get support from brokers and advisors who specialise in property investing
