Rentvesting Calculator NZ

This calculator compares rentvesting, renting where you want to live while buying an investment property somewhere more affordable, against simply buying a home to live in, using annual cash flow as the test. You enter two sets of figures. For rentvesting: the weekly rent you pay, the investment property loan amount and interest rate, the weekly rental income you expect to receive, and the investment property's annual costs (rates, insurance, maintenance and management). For buying a home: the home loan amount, its interest rate, and the home's annual costs (rates, insurance and maintenance). The calculator adds your rent to the investment property's loan interest and annual costs, then subtracts the rental income, to give your rentvesting outgoing, and works out the home-buying outgoing from the home loan interest plus its annual costs. It then shows which path costs less on cash flow and the dollar difference between the two. Because it treats mortgage interest as the carrying cost, it does not include principal repayment, capital growth, or the detailed tax treatment of a rental, all of which matter for the full financial picture. Use it to sense-check whether renting where you live and investing elsewhere stacks up against owning your own home, then weigh the result alongside growth prospects, lifestyle preferences and proper tax advice. Figures are indicative only and this is not financial advice.

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Rentvesting path

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Buy a home to live in

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Rentvesting costs less on cash flow
annual cash outgoing comparison (lower is cheaper on cash flow)
Rentvesting$42,100
Buy a home$51,500
Difference$9,400

This compares annual cash outgoings only, using mortgage interest as the carrying cost. It does not include principal repayment, capital growth, or the detailed tax treatment of a rental, which all matter and should be weighed alongside the cash flow. Estimate only, not financial advice.

How it works

The rentvesting outgoing is the rent you pay plus the investment property carrying costs, which are the loan interest plus annual costs, minus the rental income you receive. The buy-a-home outgoing is the interest on the home loan plus the home annual costs. The calculator compares the two annual figures so you can see which path costs less in cash terms. A rental that runs at a cash-flow loss is still common, with investors relying on capital growth, so consider the full picture.

Worked example

Paying $600 a week rent is $31,200 a year. An investment loan of $500,000 at 6.5% costs $32,500 interest plus $7,000 of costs, less $28,600 of rent received, a net $10,900. Rentvesting outgoing is about $42,100. Buying a home with a $700,000 loan at 6.5% costs $45,500 interest plus $6,000, about $51,500. On cash flow, rentvesting is cheaper here.

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Frequently asked questions

What is rentvesting?

Rentvesting is renting the home you want to live in while buying an investment property somewhere more affordable. It lets you get onto the property ladder without being tied to where you can afford to buy a home to live in.

Is rentvesting cheaper than buying a home?

It depends on rents, prices, and rental income. This calculator compares the annual cash flow of each path. Rentvesting can have lower or higher outgoings depending on your numbers, and there are tax and capital growth factors beyond cash flow to consider.

What does this calculator not include?

It compares cash flow only. It does not model capital growth, principal repayment, or the detailed tax treatment of a rental, which all matter and should be considered alongside the cash flow.