How Rentvesting Can Secure—or Sabotage—Your Financial Future

Rentvesting—it sounds like a smart way to get into the property
market while keeping your lifestyle intact, doesn’t it? But is it
the right move for your long-term financial future? This week, we
unpack what it takes to make rentvesting work and how to avoid
falling into common traps that could cost you more than you
bargained for. Joining us is David Johnston, Mortgage Strategist
at Property Planning Australia, to help us break it all down.


We explore a hypothetical scenario where Kath, a first-time
buyer, is trying to decide whether to buy a home to live in or an
investment property while continuing to rent where she loves.
Through this scenario, we unpack the hidden factors people often
overlook—like borrowing capacity, government incentives, tax
implications, and the risks of investing in markets that may not
perform as well as expected. It’s about more than just numbers;
it’s about having a plan that aligns with your lifestyle and
future goals.


David shares why forward planning is key, including structuring
your loan in a way that keeps your options open down the track.
Then, we also explore the trade-offs between high-yield and
high-growth properties and why asset selection is critical if you
want to avoid the pitfalls that catch so many first-time buyers
out.


If you’re considering rentvesting as a way to get ahead, this
episode is for you. We unpack how to take a long-term view, weigh
up your options, and make smart decisions that will set you up
for success—not just now but for years to come. It’s all about
being strategic and confident in your choices.


Episode Highlights:


00:00 - Introduction


02:13 - Our guest for today – David Johnston


03:27 - To set the scene: should Kath buy a home to live in or an
investment property?


06:37 - Does borrowing capacity differ when buying an investment
property vs a home to live in?


07:52 - Short-term considerations when choosing between a home
and an investment property


11:03 - Do interest rates have an impact on the choice between
buying a home or investing?


14:09 - Challenges of rentvestors buying properties outside their
state


25:21 - What needs to go right for rentvestors to afford their
dream home later?


28:43 - Why does borrowing capacity go down when interest rates
go up?


31:58 - Is it risky to buy a cheap property for rental income
while saving for a home?


34:55 - What are the risks and benefits of renting out rooms in
your owner-occupied property?


37:20 - What happens if you become an accidental investor by
buying in an unfamiliar area?


45:14 - One thing David knows now that he wishes he knew as a
first home buyer


About Our Guest:


David Johnston is the founder of Property
Planning Australia, a firm dedicated to providing independent
property and mortgage strategy advice. With a focus on helping
families build wealth and security, David believes in the power
of property as both a home and a financial asset. His approach
centers on unbiased, client-focused advice, free from conflicts
of selling investment products. David is also the author of How
to Succeed with Property to Create Your Ideal Lifestyle and
Property for Life – Using Property to Plan Your Financial Future,
both published by Wiley.


Connect with David Johnston:




Website https://propertyplanning.com.au/




LinkedIn https://au.linkedin.com/in/david-johnston-8534871




The Property Trio Podcast https://www.propertytrio.com.au/




Resources mentioned in this episode:




Your First Home Buyer Guide Podcast Episode #9: What is the
Importance of a Borrowing Strategy?
https://homebuyeracademy.com.au/podcasts/009




Resources:




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