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For first home buyers

Live in it, rent it out,
or invest first?

Compare three ways to get into the property market. See the upfront costs, yearly cashflow, tax position and projected net wealth of each strategy at 1, 3, 5 and 10 years.

2026-27 stamp duty and grants2026 negative gearing changesSide-by-side wealth projection
Estimate only, not a forecast. This tool compares strategies using your inputs and the rules current at October 2026. Real outcomes depend on interest rates, growth, rents, tax law and your circumstances. Use it to start the conversation, then confirm the detail with a broker and an accountant before you act.

About you

These settings apply to all three strategies

Location
Buying as
$
%
%
years
$
%
%
%
%
Strategy 1
Buy a home and live in it
Buy your first home and stay. First home buyer benefits apply. No rent to pay and no investment tax deductions.
$
$
$
$
Strategy 2
Live in it first, then rent it out
Live in the home long enough to keep your first home buyer benefits, then move out, rent it out and hold it as an investment.
$
$
months
$
$
$
Strategy 3
Buy an investment, keep renting
Buy an investment property from day one and keep renting where you live. Full stamp duty and no first home buyer benefits.
$
Investors often buy cheaper, higher-yield property
$
$
$
$
Comes out ahead at 5 years
 
 

Wealth gain compared with renting

How far ahead of simply renting each strategy puts you, year by year

Strategy 1: live in itStrategy 2: live in, then rent outStrategy 3: invest, keep renting

Side-by-side breakdown

Everything that goes into each result

How we work it out

Key assumptions behind the numbers

  • Negative gearing (2026 Budget): established properties bought after 7:30pm on 12 May 2026 can't offset rental losses against your salary from 1 July 2027. We let losses reduce your tax in year one, then carry them forward against future rental profits. New builds keep full negative gearing.
  • Tax: 2026-27 resident tax rates plus the 2% Medicare levy, applied at the marginal rate of the income you enter, which grows each year at your income growth rate.
  • Stamp duty and grants: 2026-27 duty rates, first home buyer concessions and grants for each state, plus transfer and mortgage registration fees and $2,000 for legal costs.
  • 5% Deposit Scheme: applied when switched on and the price is within the 2026 cap for your state and location. Otherwise lenders mortgage insurance is estimated when your deposit is under 20% and added to the loan.
  • Investment costs: 8% property management, two weeks' vacancy a year, land tax as a simplified estimate above state thresholds, and depreciation on new builds only.
  • No sale: each strategy holds the property at the end of the period, so selling costs and capital gains tax aren't included. Net wealth is equity minus all cash contributed, including your deposit and any rent paid elsewhere. Wealth gain vs renting adds back the rent you would have paid by staying where you are, so the results show how far each strategy puts you ahead of not buying.

Pressure test your strategy

Book a free chat with Jess or Matt. We'll check your eligibility for grants and the 5% Deposit Scheme, run your real borrowing power, and shortlist lenders that suit your plan.

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First home strategy questions

Can I rent out my first home and keep my first home buyer benefits?
Usually yes, as long as you meet the live-in rules first. Most states require you to move in within 12 months of settlement and live there for 6 to 12 months in a row. The 5% Deposit Scheme also requires you to live in the property. If you move out early, you may have to repay the concession, so check your state's rules before you plan a move.
What changed with negative gearing in 2026?
The 2026 Federal Budget announced that established residential properties bought after 7:30pm on 12 May 2026 can no longer have rental losses offset against salary from 1 July 2027. Losses can still be carried forward against future rental income or capital gains from that property. New builds are exempt, and existing investors are grandfathered.
Is rentvesting better than buying a home?
It depends on where you want to live, what you can afford there, and the yield and growth of the property you buy. Rentvesting can get you into the market sooner, but you give up first home buyer concessions and keep paying rent. This calculator shows the trade-off in dollars so you can compare the two honestly.
Why is the result measured against renting?
If you didn't buy, you'd keep paying rent, so the fairest test of any strategy is how far ahead of renting it leaves you. We take your equity, subtract every dollar you've put in (deposit, stamp duty, fees, repayments, running costs and any rent you still pay), then add back the rent you'd have paid anyway. Stamp duty, fees and mortgage insurance are costs you don't get back, so strategies can start behind and pull ahead as the property grows.

General information only. Not personal financial advice. Figures are indicative projections, not a forecast, and rely on the growth, rent and rate assumptions you enter. Tax outcomes are simplified estimates. Seek advice from a qualified accountant, mortgage broker and conveyancer before acting. Swish Finance Brokers Pty Ltd. Jessica Ellis and Matthew Brogan are authorised credit representatives of National Lending Group Pty Ltd (ACL 412778).

Ahead at 5 years
 

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General information only. Not personal financial advice. Calculator results are estimates only.