What Tax Benefits Can First-Home Buyers Gain from Rentvesting?

Rentvesting offers first-home buyers a unique way to get on the
property ladder, but what about the tax implications? In this
episode, we sit down with Catherine Simons, a seasoned tax
accountant, to explore the nitty-gritty of how rentvesting can
work in your favour financially. If you’re wondering about
deductions, depreciation, and capital gains tax, you’re in the
right place.


We unpack the key differences between owning a home to live in
and purchasing an investment property. We also explain concepts
like negative gearing and how depreciation can be a cash-flow
booster—even if the property is positively geared. We cover why
planning is everything, from resetting valuations to
understanding which expenses you can claim now versus those that
get capitalised over time.


For first-home buyers, we discuss common scenarios, like living
in a property before renting it out versus renting first and
moving in later. These situations come with vastly different tax
rules, and Catherine shares practical tips to avoid costly
mistakes. Her advice? Always keep detailed records and have the
right experts guiding you.


Sure, rentvesting can be a smart strategy for entering the
property market, but it’s crucial to approach it with careful
planning and the right advice. And this episode highlights the
importance of understanding tax rules, making informed decisions,
and working with professionals to maximise benefits while
avoiding costly mistakes.


Episode Highlights:


00:00 - Introduction


02:44 - Who is Catherine Simons?


03:21 - Key tax considerations for buying a home vs. an
investment property


05:51 - Tax benefits and drawbacks: Owning a home vs. An
investment property


10:21 - What property-related expenses can and cannot be claimed
as tax deductions?


15:03 - Tax implications for first home buyers: Renting vs.
Living in the property first


24:42 - Catherine’s advice for first home buyers


27:21 - Should you invest in property to lower your tax
liability?


30:19 - What are the penalties for small claims on property
expenses or deductions??


33:09 - Misconceptions about restructuring debt for
tax-deductibility in property investment


34:59 - What to know before transitioning from rentvesting to
homeownership


37:40 - How hard is it for everyday investors to find a suitable
accountant?


41:43 - What Catherine wishes she knew as a first home buyer


Resources mentioned in this episode:




WSC Group https://wscgroup.com.au/




Your First Home Buyer Guide Episode #205: Rentvesting: What
You Need to Know Before Taking the Leap
https://homebuyeracademy.com.au/podcasts/205




Your First Home Buyer Guide Episode #207: How Rentvesting Can
Secure—or Sabotage—Your Financial Future
https://homebuyeracademy.com.au/podcasts/207




Resources:




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a professional https://www.homebuyeracademy.com.au/freecourse




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