The Rise of 'Rentvesting' in Adelaide: Is It Right for You?

Introduction:

Buying a home in Adelaide isn’t as straightforward as it used to be. With rising prices in sought-after suburbs and growing demand across the board, many buyers, especially first-timers, are asking themselves:
“Is there another way to get into the property market without sacrificing the lifestyle I want?”

There is. It’s called rentvesting...and it’s on the rise.

Rentvesting is the strategy of renting where you want to live, while investing where you can afford. It’s becoming increasingly popular, especially in competitive markets like Adelaide, where balancing lifestyle and affordability can be tricky.

In this blog, we’ll explore how rentvesting works, its pros and cons, and whether it could be the right property path for you.

At Complete Property Strategies (CPS), we specialise in representing buyers, ensuring they get the best deals, avoid costly mistakes, and secure properties that match their goals.

With that said, here's How 'Rentvesting' in Adelaide Might Be Right For You! 👊

1. What is Rentvesting?

Rentvesting combines two key goals:
✅ Enjoying a great lifestyle in your dream location
✅ Building wealth through real estate in affordable, high-growth suburbs

Instead of buying a home in an expensive suburb (and being stretched financially), rentvestors choose to rent a home that suits their lifestyle, close to work, cafes, schools, beaches, while buying a more affordable property elsewhere as an investment.

Let’s say you love the inner-east lifestyle of Norwood or Parkside, but prices are out of reach. Instead of taking on a massive mortgage, you rent in Norwood and purchase an investment property in an up-and-coming suburb like Kilburn or Salisbury.

2. Why Is Rentvesting Becoming Popular in Adelaide?

Adelaide has long been viewed as Australia’s most “liveable and affordable” capital city. But those days are shifting.

• House prices have steadily increased over the past few years, especially in lifestyle-rich suburbs close to the CBD.

• Rental prices are rising too, but in many cases, it’s still cheaper to rent in premium suburbs than to buy there.

• Interest rates have made larger mortgages more expensive to manage.

• Buyers want lifestyle—but also want to get on the property ladder early.

Rentvesting ticks both boxes.

3. Top Benefits of Rentvesting

1. Lifestyle Without Compromise

Live in the area you love without being locked into a huge mortgage. Want to be close to your work, your kids’ school, or your favourite beach? You can, without having to buy there.

2. Faster Entry Into the Market

You might not be able to afford $1.2M for a house in Unley, but $550K for a house in Ingle Farm? That’s more achievable. Rentvesting allows you to start building equity sooner, rather than waiting years to save a larger deposit.

3. Tax Benefits

As an investor, you may be eligible for tax deductions on:

• Loan interest

• Depreciation

• Property management fees

• Repairs and maintenance

These advantages aren’t available if you own and live in the home.

4. Build Long-Term Wealth

Rentvesting gives you an investment property that (ideally) appreciates over time while someone else pays the rent. When you’re ready, you may use the equity to:

• Buy your dream home later

• Purchase another investment

• Refinance for renovations or upgrades

4. But It's Not For Everyone: Key Considerations

Rentvesting offers flexibility...but it comes with trade-offs.

❌ You're Still Paying Rent

You’ll still have ongoing rental costs, which can feel like “dead money.” Although you’re building wealth through your investment, it may take time to see returns.

❌ Fewer Government Grants

If you’re a first-time buyer, rentvesting may make you ineligible for first-home buyer grants or stamp duty concessions, which apply only to owner-occupied homes.

❌ Less Emotional Ownership

Renting means you can’t fully customise your living space. If you crave putting roots down and renovating your home to your taste, rentvesting may not satisfy that desire.

❌ Potential Risk with Tenants or Market

Like any investment, property comes with risks. You’ll need to factor in:

• Vacancies

• Unexpected repairs

• Market downturns

• Increased interest rates

5. Adelaide's Market in 2025: Perfect Storm for Rentvesting?

As of 2025, Adelaide is seeing:

• Inner-ring price pressure: Suburbs like Norwood, Hyde Park, and Glenelg have surged beyond reach for many buyers.

• Rental demand high: Rental yields are strong, making investment properties attractive.

• Growth corridors emerging: Suburbs like Kilburn, Seaford Meadows, and Tea Tree Gully are rising stars, offering value and future capital growth.

These conditions make rentvesting particularly attractive for savvy buyers wanting to play the long game.

6. Who Should Consider Renvesting?

✅ First-home buyers priced out of premium locations
✅ Young professionals who want inner-city lifestyle without overextending
✅ Couples/families wanting more flexibility while building equity
✅ Investors with a long-term wealth-building mindset
✅ Interstate buyers who can’t yet relocate but want to get into the Adelaide market early

7. Case Study: Brent and Emily's Story

Brent and Emily wanted to live in the leafy suburb of St Peters, but couldn’t afford to buy there. Rather than delay their entry into the market, they decided to rent a unit in St Peters and buy an investment townhouse in Para Hills.

• Their mortgage repayments were low.

• The rental yield covered most of their costs.

• Four years later, their investment property had grown by $92,583 in value.

Now, they’re leveraging that equity to buy a second investment.

8. Final Thoughts: Is Rentvesting Right for You?

If you value lifestyle and flexibility, but still want to build wealth through property, rentvesting might be the smartest strategy for your situation.

But it’s not a one-size-fits-all solution.

You’ll want to:

✅ Review your cash flow
✅ Get expert tax advice
✅ Choose suburbs carefully
✅ Have a long-term plan

8. Your Next Step: Speak to an Expert

At Complete Property Strategies, we help our clients understand if rentvesting aligns with their goals, and we guide them every step of the way.

From sourcing high-growth investment opportunities to helping you rent in the suburb you love, our team takes care of the strategy, search, negotiation, and settlement.

📞 Book a free consultation today or reach out to us with any questions.

Email: alfredo@completepropertystrategies.com.au | Phone: 0427 703 097

If you want to speak with a professional please reach out to me and I will be glad to answer any questions you might have.

Alfredo Cabada | Buyer's Agent | Complete Property Strategies

Email: alfredo@completepropertystrategies.com.au | Phone: 0427 703 097

Checklist

• I want to live in a suburb I can’t currently afford to buy in

• I have a stable income and can manage both rent and a mortgage

• I want to start building property equity sooner

• I’m open to investing in suburbs I don’t live in

• I have a long-term wealth-building mindset

• I want to work with professionals to get it right

This checklist ensures you approach buying your home in Adelaide with confidence and clarity!

Disclaimer

The information provided in this blog is for general informational purposes only and does not constitute financial, legal, or investment advice. Complete Property Strategies is not a licensed financial planner, legal advisor, or tax professional.

Before making any financial, investment, or property-related decisions, you are advised to consult with a qualified financial advisor, accountant, or other appropriate professional to ensure that your individual circumstances are taken into account.

Complete Property Strategies makes no representations or warranties, express or implied, about the accuracy, reliability, or completeness of the information provided and disclaims any liability for decisions or actions taken based on this information.