Off The Plan Housing as Part of a Rentvesting Strategy

For many Australians, the dream of home ownership looks a little different these days. High property prices, shifting lifestyles and the desire for greater financial flexibility have encouraged a new approach — rentvesting. It’s a strategy that allows you to step into the property ladder without sacrificing the lifestyle or location you love. 

Pairing rentvesting with an off-the-plan purchase could be your ticket to long-term growth, savings and sustained wealth creation for your family. 

So, what is rentvesting all about, and how can it work for you? 
 

What is Rentvesting? 

A rentvesting strategy means that instead of buying a place just to live in, you choose an investment property in the area you can actually afford, then rent it out to tenants. Meanwhile, you keep renting in the suburb you really want to be in. Maybe it’s close to work, your friends or just the vibe you like. 

Giving you the best of both worlds, you get the financial perks of owning real estate, plus the freedom to live where you want. 

Picture this: a young couple rents a townhouse in Sydney’s Inner West because it’s close to everything they need, but they buy an investment apartment out in a growing regional hub like the Hunter Valley or where entry prices are more reasonable. They’ve made their foray into the property game, with the rent from their tenants helping with the mortgage. 
 

What Does Buying Off-the-Plan Mean? 

Buying off-the-plan means purchasing a property, typically an apartment, townhouse or house-and-land package, before it’s built. You buy based on architectural plans and renders, with construction completed months or even years later. 

It’s a popular pathway for both investors and first home buyers because it allows you to: 

• Secure today’s prices for tomorrow’s property. 
• Pay a smaller deposit upfront (usually 10% or 5% when building with Eden Brae Homes) while deferring the balance until settlement. 
• Access potential savings on stamp duty (first-time home buyers in some states). 
• You get to move into or lease out a brand-new place with the latest design and energy features. 
   

Why Combine Rentvesting with an Off-the-Plan Purchase? 

Rentvesting is all about strategy, choosing where your money works hardest. Off-the-plan purchases align perfectly with that mindset. Here’s why: 

1. Lock in today’s prices for future value 

Property values usually go up over time, especially if you choose a neighbourhood that’s on the rise. If you buy off-the-plan, you lock in today’s price even if your new place won’t be finished for a year or two. That’s a pretty clever way to get ahead. 
 
By the time you get the keys, your property could already be worth more than what you initially paid. Hello, instant equity. For rentvestors, that’s a great way to grow your property portfolio faster or refinance for your next investment. 

2. Enjoy depreciation and tax advantages 

When you rentvest, your property counts as an investment. You can claim deductions on stuff like loan interest, property management fees and repairs. 

Brand new properties also come with significant depreciation benefits. You can claim depreciation on the building and eligible inclusions, like appliances or carpets, which can help shrink your taxable income. 

It’s worth having a chat with an accountant who knows property so you make the most of these deductions and set things up right. 

3. Lower maintenance and vacancy risks 

Modern, well-located homes with energy-efficient features and the latest appliances are always popular with tenants.  

When you buy off-the-plan, you tick all those boxes. That can translate to stronger rental demand and fewer maintenance issues compared to older properties. Both are huge when you’re trying to keep your cash flow steady and your returns up. 

4. Time to build your savings and plan strategically 

Because you don’t have to pay for the property until it is built, rentvesting gives you extra breathing room to save more or tidy up your finances. That means you can: 

• Boost your deposit to reduce future mortgage costs. 
• Pay off other debts to increase your borrowing power.  
• And build yourself a bit of a financial buffer. Lending rules can change and it’s nice to have some wiggle room just in case. 

In other words, you get to lock in your investment now, but you still have time to get your financial ducks in a row before that first repayment hits. 

5. Long-term capital growth potential 

A lot of off-the-plan properties pop up in up-and-coming suburbs or places set to score big from new roads, train lines or fresh investment in the area.  
 
Getting in early allows rentvestors to capture that growth as demand for the area increases. That can mean bigger gains over time as the neighbourhood improves. 
 

Is Rentvesting a Good Idea? Key Considerations 

Like any investment in real estate, success will be all about research, timing and clear financial planning. Before you commit to an off-the-plan purchase as part of your rentvesting strategy, think through the following: 

1. Location and rental demand 

Focus on areas where renters are already keen and interest keeps growing. Being close to trains, good schools, shopping centres or large employment hubs really matters. If you want a place that fits how your future tenants want to live, take a look at local vacancy rates and rental returns. 

2. Builder reputation 

Not all off-the-plan projects are created equal. Research the builder’s track record, previous projects and delivery timelines. That way you’ll have way more confidence that your investment will actually get built, and built well. 

3. Finance structure and approval 

It often pays to work with a broker or lender who knows the ins and outs of off-the-plan finance, because a loan for an off-the-plan property can differ from a standard purchase. Some lenders only issue conditional approval until construction is nearly complete.  

Also, remember property prices can dip during construction. Make sure your finances are solid enough to handle any temporary drops in value. 

4. Understanding the contract and inclusions 

Don’t just skim the contract; involve a solicitor or conveyancer who knows the ropes with off-the-plan finance. Check what’s included in the purchase price, such as landscaping, fencing or appliances, and what’s not. 

Small surprises at settlement can mess with both your rental appeal and the property’s value, so clear details up front matter. 
 

Is It Right for You? 

While combining rentvesting with an off-the-plan purchase isn't for everyone, it can be a powerful strategy for starting or growing your property portfolio. A rentvesting strategy can be a game-changer for: 

• First-home buyers who can’t afford their dream suburb but still want to invest. 
• Young professionals who want the freedom to live where they like but still want to get a foot on the property ladder. 
• And investors, so they can balance cash flow, receive tax benefits and take advantage of long-term gains.  

Here’s the best part: you get to live where you actually want and invest where it makes sense. You don’t have to choose between lifestyle and smart property moves. You can have both.