Calculator

Rent-Vesting vs Owner Occupying

Compare these three scenarios: 1. Buy to live in 2. Buy to rent out 3. Buy to live in for a year, then rent out. See how your net worth stacks up over time.

Property & Assumptions

After 5 Years

Accumulated value
Owner OccupyingProperty equity (value minus remaining loan) less cumulative holding costs (council rates, insurance, maintenance).$289,578
Rent-VestingProperty equity at investor rate, plus cumulative net cashflow: rental income (after vacancy & PM fees) minus rent you pay minus holding costs.$342,679
Own-then-RentProperty equity plus cumulative cashflow. Year 1: owner-occupying (holding costs deducted). Year 2+: rental income (after vacancy & PM fees) minus rent you pay minus holding costs.$349,598

Entry costs (Owner vs Rent-Vest)

Owner path (with concessions)$5,078
Rent-vest path (no concessions)$27,353

Rates

Owner-occ rate6.19%
Investor rate6.49%
CGT note: This does not take into account the CGT benefits of occupying, moving back in or not moving in at all. These are questions for your accountant that could significantly affect your outcome.

Net worth over time

$0$87,399$174,799$262,198$349,598011223
Owner OccupyRent-VestingOwn-then-Rent
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