Rentvesting guide
How to rentvest: the steps, in order
The short answer
Rentvesting usually follows the same order: work out your numbers, talk to a lender about borrowing capacity, talk to a tax agent about the 2026 rules, decide between new and established, research locations, test the best and worst case, buy and set up management, then review each year. Each step depends on your circumstances.
This is the order most people work through when they rentvest. It doesn’t tell you what to do. It shows what each step involves and who usually helps with it, as at 6 November 2026.
Step 1: Work out your own numbers
Before property, the starting point is you:
- Income, and how stable it is
- Regular expenses, including your current rent
- Savings, and how much of that is a buffer you’d keep untouched
- Existing debts, including credit cards and HECS-HELP
- Your marginal tax rate (for 2026-27: 30% from $45,001, 37% from $135,001, 45% from $190,001, plus 2% Medicare; ATO)
A useful test is whether you could carry your own rent plus the investment’s worst case for a year, with nothing else going wrong.
Step 2: Talk to a lender or broker
An investment loan is assessed on your income, expenses and debts, plus the expected rent, with a buffer for rate rises. Questions people ask:
- What’s my borrowing capacity for an investment?
- Would I be assessed for 100% of the purchase price plus LMI?
- How is rent counted?
- Principal and interest, or interest only?
Finance of 100% of the purchase price plus LMI is offered through licensed lending partners, including Empower Money (ACL 561207), subject to eligibility and credit assessment. See 100% finance.
Step 3: Talk to a registered tax agent
The 2026 changes make this step more important than it used to be:
- Established dwellings bought after 7:30pm AEST 12 May 2026 have net losses quarantined from 1 July 2027.
- New residential dwellings remain eligible for negative gearing, subject to the Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 before Parliament.
- CGT changes from 1 July 2027.
Sources: Pitcher Partners, Baker McKenzie. See negative gearing in 2026.
Step 4: Check what you’d give up
First home owner grants, stamp duty concessions and the 5% Deposit Scheme are for owner-occupiers. Buying an investment first can affect 5% Deposit Scheme eligibility for up to 10 years. See first home buyer grants.
Step 5: Decide new or established
| Consider | New build | Established |
|---|---|---|
| Negative gearing against salary (bought after 12 May 2026) | Yes, subject to legislation | No, from 1 July 2027 |
| Depreciation | Higher | Lower |
| Construction risk | Yes | No |
| Rent history | Often none | Usually available |
| Stamp duty | Often on land only for split contracts, in many states | Full price |
Step 6: Research locations
What people commonly look at:
- Vacancy rates in the suburb, compared with the national 2.4% reported by Cotality for October 2026
- Rents for similar homes
- Supply: how many similar homes are being built nearby
- Jobs, transport and infrastructure that support tenant demand
- Price history, including how the area behaved in downturns
The October 2026 market context matters: national values were 6.7% below the March peak (Cotality).
Step 7: Check the property independently
- An independent valuation, to compare with the price
- An independent rental appraisal from a local property manager
- For new builds, the builder’s licence, insurance and track record, and a fixed-price contract with clear inclusions
- For established homes, a building and pest inspection
- If there’s a rental guarantee, the six questions in our rental guarantee guide
Step 8: Test the best and worst case
Run the holding cost:
- Best case: tenanted every week.
- Worst case: vacant every week. With a rental guarantee, the property management company pays the guaranteed rent for its term, typically three years, so you’re short only the gap to your costs. After it ends, no rent.
The calculator on our is rentvesting worth it page shows both for an example property.
Step 9: Buy and settle
- Conveyancer or solicitor reviews contracts
- Finance approval, then unconditional
- Landlord insurance from settlement (or from completion for a build)
- For a build, progress payments as stages complete
Step 10: Set up management
- Appoint a property manager and agree fees
- Get a depreciation schedule from a quantity surveyor
- Set up a separate account to keep investment income and costs clear for tax time
Step 11: Review every year
Rents, rates, your own rent, your income and tax rules all move. An annual check with a tax agent and lender keeps the numbers current.
See the steps worked through
For a live walk-through of each step with an example, join a free WPF GO webinar with Peter Khoury. General information only, not personal advice.
Frequently asked questions
What is the first step in rentvesting?
Most people start with their own numbers: income, expenses, savings, debts and current rent. That shows what buffer they have and gives a lender and tax agent something concrete to work with. It also shows whether carrying rent and an investment at once is realistic.
Do I need a broker to rentvest?
No, but many people use a broker or a licensed lending partner to compare lenders, because investment loan policies differ. Finance of 100% of the purchase price plus LMI is available through licensed lending partners, including Empower Money (ACL 561207), subject to eligibility and credit assessment.
How long does rentvesting take to set up?
For an established property, from finance approval to settlement often takes a couple of months. For a house and land build, settlement on the land is followed by construction, which can take many months, before the property can be rented. Timeframes vary by builder and state.
Who do I need on my team to rentvest?
Commonly a lender or broker, a registered tax agent, a conveyancer or solicitor, an independent valuer, a property manager, and for new builds, a quantity surveyor for the depreciation schedule. A licensed financial adviser can look at how it fits your broader situation.
Can I move into my rentvesting property later?
Some people do. Moving in changes how the property is taxed and can affect CGT, insurance and loan terms. The 2026 negative gearing and CGT rules add further complexity. A registered tax agent and lender can explain the effects before you decide.