Home first, or investment first
Rent or buy calculator.
Two ways to start: buy the home you live in, or keep renting and buy an investment property instead, sometimes called rentvesting. The tool opens on an example, so change any figure to your own.
On these assumptions
On these assumptions, buying a home finishes with a net position about $132,377 higher after 10 years.
That is an outcome of the figures you entered, not a recommendation. It is before selling costs and capital gains tax, which a sale would bring on the investment property but generally not on a home you live in.
Buy a home: Net position
$246,335
Rent and invest: Net position
$113,958
This calculator is not intended to be relied on to make a decision about a financial product. Consider getting advice from a licensed financial adviser before you make any financial decision.
On these figures, renting and investing costs about $1,738 a month less than buying a home in the first year.
The two paths side by side
| Buy a home | Rent and invest | |
|---|---|---|
| Cash needed at the start | $314,037 | $271,655 |
| Cost a month, first year | $6,421 | $4,683 |
| Tax effect | $0 | $6,325 |
| Total paid along the way | $1,084,534 | $896,378 |
| Equity built | $1,330,869 | $1,010,336 |
| Net position | $246,335 | $113,958 |
| In today's dollars | $192,437 | $89,024 |
Net position each year
Sources
- Revenue NSW: Calculate transfer duty (2026/27 rates and premium duty)
- Queensland Revenue Office: Transfer duty rates (with investment property worked example)
- Federal Register of Legislation: Treasury Laws Amendment (Tax Reform No. 1) Act 2026, No. 49, 2026 (as made)
- ATO Legal Database: ITAA 1997 s 115-100 (discount percentage, as amended by No. 49, 2026)
- Federal Register of Legislation: Treasury Laws Amendment (Tax Reform No. 2) Act 2026, No. 71, 2026, Schedule 4 (negative gearing exceptions, from 2027-28)
- Parliament of Australia: Explanatory Memorandum, Tax Reform No. 1 Bill 2026 (Chapter 1 CGT, Chapter 2 negative gearing)
- ATO: Tax rates, Australian resident (2026-27 table)
- ATO: Taxation Statistics 2023-24, individuals, Table 3 (published 17 June 2026)
- ABS: Consumer Price Index, Table 18, Rents, weighted average of eight capital cities (quarterly index, June 2006 to June 2026)
- ABS: Total Value of Dwellings, June quarter 2026, Table 1, mean price of residential dwellings (released 8 September 2026)
- RBA: Statistical table F6, housing lending rates (August 2026, published 8 October 2026)
- ABS: Residential Property Price Indexes: Eight Capital Cities, December quarter 2021 (final release), Table 1
- NSW Communities and Justice: Rent and Sales Report, rent tables, June quarter 2026 (new bonds, all dwellings)
- Residential Tenancies Authority (QLD): bond statistics, median weekly rents, September quarter 2026
Rates last checked 25 October 2026.
How it is worked out
- Buying a home: your deposit and the stamp duty, at the general rates of the state you choose, are paid upfront, and the rest of the price is borrowed.
- The home loan repayment comes from the interest rate, the repayment type and the loan term, and the home's value grows at the rate you set.
- Renting and investing: you pay rent where you live, and buy the investment property the same way, with a deposit, stamp duty at its state's general rates, and a loan.
- The investment's rental result is the rent received less the interest. A loss reduces your tax and a profit adds to it, worked out from your income at resident rates. From 1 July 2027, a net rental loss on an established home acquired at or after 7:30pm AEST on 12 May 2026, which for a purchase means contracted, can no longer reduce tax on your salary or other income, unless an exception applies; it can be used only against residential property income and gains, and the rest carries forward to be used the same way in later years. If you choose an established home, the tool applies this from 2027-28: a loss gives no tax effect that year, and it is carried forward against the property's later rental profit. If you choose a new build, a loss keeps reducing your tax.
- Each month, each path's cost is added up: repayments and rent paid, less rent received and the tax effect.
- Rent paid and rent received rise each year at the rent growth rate you set.
- At the end of the period, each path's net position is its equity, what its property is worth less what is still owed, less every dollar paid along the way: the deposit, stamp duty, repayments and rent paid, less rent received and the tax effect. The verdict is the gap between the two.
- If the two finish within 1% of the buy path's net position, the tool calls them close.
What changes from 1 July 2027
From 1 July 2027, a net rental loss on an established residential dwelling acquired at or after 7:30pm AEST on 12 May 2026 can no longer reduce tax on salary or other income. This is now law. For a purchase, the date that counts is the date of the contract, not settlement. The loss can be used only against residential rental income and residential capital gains, and any excess carries forward to be used the same way in later years. Dwellings acquired before the cut-off, and new dwellings, are not affected, although what counts as a new dwelling has not yet been defined in law. Some dwellings acquired later keep an earlier owner's treatment, such as one inherited from a spouse or transferred on a relationship breakdown. Treat any result that uses this rule as an estimate, and confirm the position with your accountant.
Why these starting figures
The tool opens on example figures so you can see how it works. Rates and thresholds set by law are the published figures on the date shown. Every other starting figure comes with the reason it was chosen, and you can change any of them.
- Your taxable income
- Why this starting figure: the median taxable income of Australian individuals, 2023-24.
- Years to compare
- Why this starting figure: a ten-year comparison.
- Loan term
- Why this starting figure: the standard term for a home loan.
- Rent growth a year
- Why this starting figure: the annualised rise, before inflation, in the rents part of the CPI (eight capital cities) over the 20 years to June 2026.
- This starting figure is a long-term past average, not a forecast. A long period evens out strong and weak years, so it is a fairer starting point than recent years alone, but the future may be higher or lower.
- Inflation a year
- Why this starting figure: the midpoint of the Reserve Bank's inflation target band of 2 to 3%, the default rate ASIC's calculator instrument and RG 167.106 also set.
- Home price
- Why this starting figure: the mean price of a residential dwelling in NSW, June quarter 2026.
- Home state or territory
- Why this starting figure: an example pairing: a home in NSW and an investment in Queensland, to show stamp duty and rent in two states; change either to your own.
- Deposit
- Why this starting figure: a 20% deposit keeps the loan at 80% of the price, the level above which lenders mortgage insurance usually applies.
- Home loan interest rate
- Why this starting figure: the Reserve Bank's average rate on outstanding owner-occupier variable loans, as at August 2026.
- This starting figure is a current figure, as at the date shown, not a long-term average or a forecast, and it can change over the period.
- Home growth a year
- Why this starting figure: the annualised growth, before inflation, in dwelling prices across Australia, not in NSW alone, over the 20 years to June 2026, used for both properties so the two paths start on equal growth. Two ABS series are joined at the December quarter 2021: the residential property price index for the eight capital cities, which adjusts for the mix of dwellings sold, from June 2006 until it ended in December 2021; then the mean price of residential dwellings across Australia, which covers the whole country and is not adjusted for mix, to June 2026.
- This starting figure is a long-term past average, not a forecast. A long period evens out strong and weak years, so it is a fairer starting point than recent years alone, but the future may be higher or lower.
- Home loan repayments
- Why this starting figure: principal and interest, the usual way to repay a loan on a home you live in.
- Rent you pay
- Why this starting figure: the NSW median weekly rent on new bonds, NSW Communities and Justice, as at the June quarter 2026.
- This starting figure is a current figure, as at the date shown, not a long-term average or a forecast, and it can change over the period.
- Investment property price
- Why this starting figure: the mean price of a residential dwelling in Queensland, June quarter 2026.
- Investment state or territory
- Why this starting figure: an example pairing: a home in NSW and an investment in Queensland, to show stamp duty and rent in two states; change either to your own.
- Investment deposit
- Why this starting figure: a 20% deposit keeps the loan at 80% of the price, the level above which lenders mortgage insurance usually applies.
- Investment loan interest rate
- Why this starting figure: the Reserve Bank's average rate on new interest-only housing loans, as at August 2026.
- This starting figure is a current figure, as at the date shown, not a long-term average or a forecast, and it can change over the period.
- Rent you receive
- Why this starting figure: the Queensland median weekly rent on new bonds, Residential Tenancies Authority, as at the September quarter 2026.
- This starting figure is a current figure, as at the date shown, not a long-term average or a forecast, and it can change over the period.
- Investment property growth a year
- Why this starting figure: the annualised growth, before inflation, in dwelling prices across Australia, not in Queensland alone, over the 20 years to June 2026, used for both properties so the two paths start on equal growth. Two ABS series are joined at the December quarter 2021: the residential property price index for the eight capital cities, which adjusts for the mix of dwellings sold, from June 2006 until it ended in December 2021; then the mean price of residential dwellings across Australia, which covers the whole country and is not adjusted for mix, to June 2026.
- This starting figure is a long-term past average, not a forecast. A long period evens out strong and weak years, so it is a fairer starting point than recent years alone, but the future may be higher or lower.
- Investment loan repayments
- Why this starting figure: interest only, so the comparison shows the investment's cost before any principal is repaid; change it if you plan to repay principal.
- What you would buy
- Why this starting figure: an established home, because a purchase made now falls after the 12 May 2026 cut-off; change it if you are buying a new build.
What this tool leaves out
- Stamp duty concessions. Both purchases use the general rates, so if you qualify for a first home buyer or owner-occupier concession, buying a home costs less upfront than shown.
- Lenders mortgage insurance (LMI). The loan-to-value ratio (LVR) is the loan as a share of the property's value; above 80%, LMI usually applies, and the tool does not add it.
- Tax on a sale. A home you live in is generally exempt from capital gains tax and an investment property is not, so if both were sold, the rent-and-invest figure would fall further. Any rental loss carried forward under the rules from 1 July 2027 would reduce that taxable gain, and the tool does not apply it.
- Ownership costs. Council rates, insurance, strata, repairs and property management are not counted on either path, and nor is land tax on the investment property. The home and the investment each carry these costs, and the investment's costs would also change its tax effect.
- Earnings on money saved. The tool counts every dollar each path costs, but it does not assume that money one path saves is invested and earns a return.
- Life. Security of tenure, the freedom to move and where you want to live are real costs and benefits that no calculator prices.
Questions investors ask
Is the verdict a recommendation?
No. It reports which path finishes with the higher net position on the figures you entered, and nothing more. Change the growth rates, the rents or the interest rates and the order can change. Whether either path suits you depends on your whole situation, which is a conversation for your broker, accountant and adviser.
What is rentvesting?
It is the second path here: you rent the home you live in and own an investment property somewhere else, sometimes in another state. The investment earns rent, and its costs and tax are treated differently from a home you live in.
Why can the two properties grow at different rates?
They are usually different properties in different markets, and a home where you want to live may not move with an investment chosen elsewhere. Both rates are assumptions. Past performance is not a guarantee of future results. Individual results vary.
Why does only one path show a tax effect?
An investment property's rental result counts for tax: a loss may reduce your tax, and a profit adds to it. A home you live in earns no rent, so there is nothing to count. From 1 July 2027, a net rental loss on an established home acquired after 7:30pm AEST on 12 May 2026 can no longer reduce tax on your salary or other income. The tool applies that rule from 2027-28 when you choose an established home: the loss is carried forward against the property's later rental profit instead.
Does it include stamp duty?
Yes, on both purchases, at the general rates for the state each property is in. Those rates leave out first home buyer and owner-occupier concessions, so if you qualify, buying a home costs less upfront than shown. The stamp duty calculator shows the duty on its own.
What should I ask next?
Three questions to take to your broker and accountant. What could you borrow on each path? How would the investment's rental result be taxed in your hands? And how long do you expect to stay where you live?
Where to next
If you are deciding whether a home or an investment comes first, we can work through both paths with you.
This calculator gives general information only. It compares two paths on the figures you enter, with every rate and assumption held constant and stamp duty at general rates without concessions, so real results will differ, and the verdict is an outcome of those figures, not a recommendation to buy, rent or invest. It is not tax, credit or financial advice, and apart from the figures you enter, it does not take into account your objectives, financial situation or needs. Past performance is not a guarantee of future results. Individual results vary. CHAD Property coordinates with brokers, accountants and planners and does not give tax, credit or financial advice, so speak with a licensed professional before you act.
The tools on this page give general information only. Each result is an estimate, worked out from the figures you enter and the assumptions shown, using rates and rules as at the date shown. It is not a quote, and it is not intended to be relied on to make a decision about a financial product, a loan or your tax. It is not personal financial, tax, credit or legal advice, and apart from the figures you enter, it does not take into account your objectives, financial situation or needs. Rates, thresholds and laws change, and some details of recent changes are not yet final. CHAD Property is a buyer's agency. It does not hold an Australian financial services licence or an Australian credit licence, and it is not a registered tax agent. We do not advise on tax, lending, financial products or how to structure ownership, including through a self-managed super fund, a company or a trust; we work alongside the brokers, accountants and financial planners who do. Before you make a financial decision, consider getting advice from a licensed financial adviser, and check any figure here with a licensed or registered professional who knows your situation.