Recently, in suburbs like Riverstone, an increasing number of first-home buyers are adopting a hybrid strategy often dubbed “rentvesting”—renting in their preferred lifestyle suburb while owning an investment property elsewhere. For buyers in Riverstone, this approach is becoming especially compelling. In 2025, this hybrid approach is gaining traction among first-home buyers and investors, especially in growth corridors around Schofields, Marsden Park, and the new estates of Riverstone.

For many prospective investors and homebuyers in Riverstone, rentvesting basically offers a way to get a foot on the property ladder while continuing to rent in more amenable areas for lifestyle, schools, or commute. At OM Financials, we guide our clients by understanding their desires to evaluate rentvesting alongside conventional home ownership, helping them strike a balance aligned with both financial goals and lifestyle aspirations.

The Rise of Rentvesting: A Strategic Response to Affordability

Home prices in Sydney and its outer corridors have surged more rapidly than wage growth, making owner-occupation in desirable areas harder to attain. In fact:

• New data shows a 21.4% rise in first-home buyer loans used for investment (i.e., rentvestors) in 2025, more than double the growth rate of FHB loans for owner-occupiers.
• According to Mozo, first-home investors (rentvestors) accounted for about 6.85% of the FHB market in 2024, up from 5.54% in 2019.
• Nationally, an estimated 15% of private tenants are classified as rentvestors.

These numbers reveal a growing dissatisfaction among young buyers who find themselves priced out of the suburbs they aspire to reside in.

Why First-Home Buyers Are Considering Rentvesting in the Riverstone Area

1. Access to growth corridors without lifestyle compromise

In the Riverstone region, new residential developments and infrastructure upgrades may offer strong capital growth potential. You might invest in a new or upcoming suburb further out for growth while renting closer to jobs, schools, or public transport—particularly around Schofields and along the train line.

2. Flexibility in early career or life stages

Early in your career, job location may shift, or family needs may change. Rentvesting offers flexibility: you rent a home that suits your present life, without being locked into a property that doesn’t meet future needs.

3. Lower entry barrier to property ownership

Because capital growth suburbs often have lower entry price points, rentvesting enables a first-home buyer to secure property ownership earlier—without paying overly high prices in sought-after lifestyle suburbs.

4. Strategic financing and portfolio building

When structured well, rentvesting can offer tax benefits (e.g., negative gearing) and give first-home buyers a more diversified property exposure. With the right home loans, new Riverstone estates, or construction loans from Riverstone Development, you can tailor investment finance separate from your lived residence.

Role of Finance: Home Loans, Construction Loans, and Broker Support

Executing a strong rentvesting strategy requires quite a strict and careful financial structuring. That’s where OM Financials fits in:

• For new projects or subdivisions, we can truly guide you through home loans in the new Riverstone estates, assessing the best offers, interest rate structures, offsets, and incentives.
• For brand-new housing or developments, construction loans from Riverstone Development may be needed—staged draws that convert to traditional mortgages on completion.
• For individuals who may live or rent near Schofields, we act as the mortgage broker for Schofields station, balancing your rental and investment finances in a cohesive strategy.
• We help first-home buyer Schofield’s clients evaluate whether rentvesting versus buying makes sense in their circumstances—modelling tax, cash flow, risks, and growth.

Quarter / Period	New First-Home Buyer Loan Commitments (% change)	Investor Loans Growth (%)	Owner-Occupier (Excl Refinance) Growth (%)
Mar Q2025	–4.2%	-3.7%	-3.4%
Jun Q2025	+1.7%	+3.5%	+0.9%

Source – Australian Bureau of Statistics

In each case, we bring lender relationships, access to portfolio lenders, and negotiation for fees, valuations, or discounts.

Key Considerations for Rentvesting Before You Commit

Loan Structuring & Risk: Your investment property loan and your rental lifestyle lease must be carefully structured to cope with interest rate variations, vacancy, and carrying costs.

Tax, Depreciation & Legislation: Owning an investment property invites complexities around depreciation, negative gearing, and capital gains tax. Good mortgage brokers (e.g., mortgage broker Schofields station) and tax professionals matter.

Market selection: Choose investment suburbs with solid growth fundamentals—near infrastructure, schools, and decent amenities—not only lower cost.

Exit strategy: Be clear whether your plan is to eventually live in the investment or convert equity to buy your preferred home.

Loan and LVR constraints: Investment lending may require a higher deposit (lower LVR) or stricter servicing criteria.

Serviceability buffer: Lenders will assess your capacity to service both the investment loan and your rent. Avoid overextending.

Rentvesting vs. Purchasing in Riverstone/Schofields—What Truly Makes Sense for You?

In Riverstone, emerging home loans Riverstone new estates and construction loans Riverstone development projects are making new builds accessible—sometimes with incentives, well-planned infrastructure, and modern amenities. For many first-home buyers, combining rentvesting with a new build elsewhere allows entry into the property market while preserving lifestyle flexibility.

If your ideal living location is Schofields (due to proximity to the station, transport links, or amenities), but its price point is prohibitive right now, renting there while owning an investment elsewhere is a strategic workaround. That said, if you can secure a well-priced new build in Riverstone or adjacent suburbs with excellent growth prospects and lock into favorable rates or grants, buying your primary residence may still be the more straightforward path—avoiding dual housing costs and complexity.If you’re weighing whether to rentvest or to buy—or a hybrid of both—and want clarity on what’s optimal for your situation in Riverstone/Schofields. Call now at+61-478-876-967 or book your free consultation call—reach out to us at OM Financials and let us run custom scenarios, map out pathways, and help you make the choice that suits your goals today and tomorrow.