Many first home buyers believe they must buy a home where they live.
Today, smart buyers separate lifestyle from investment decisions.
This client success story shows how a couple living and working in Tasmania entered the property market through rentvesting by purchasing land and building an investment property in Queensland.
Client names and figures have been adjusted for privacy.
The Clients
MA works in the retail industry with stable part time employment income.
FA is a health professional working across healthcare roles.
Both applicants are permanent residents with secure income and strong savings habits.
They wanted to start building wealth through property without changing their current lifestyle in Tasmania.
The Challenge
Property options where they lived did not align with their investment goals.
They wanted:
• entry into the property market sooner
• strong rental income
• long term capital growth potential
• flexibility to continue living in Tasmania
Instead of delaying their plans, they chose a rentvesting strategy.
What Is Rentvesting?
Rentvesting means you rent where you live and buy property where investment fundamentals are stronger.
This approach allows first home buyers to begin wealth creation earlier.
Why Queensland?
After reviewing multiple markets, Queensland was selected because of:
• strong interstate migration
• growing population corridors
• land and construction opportunities
• rental demand from expanding communities
• affordability compared to capital cities
The clients purchased land followed by construction of a new investment property.
Investment Property Structure
Land Purchase
Contract price: approximately $427,000
Loan amount: approximately $386,000
Construction Contract
Build cost: approximately $372,900
Construction loan: approximately $338,000
Total Property Value
Approximately $799,900
Total Loan Amount
Approximately $724,000
Expected Rental Income
Approximately $650 per week
The staged land and construction funding allowed better cash flow management during the build period.
Income Assessment Strategy
MA – Retail Industry
• Part time retail employment income used
• Stable employment history confirmed
• Overtime assessed conservatively
FA – Health Professional
• Primary healthcare employment income assessed
• Strong overtime history supporting borrowing capacity
• Secondary employment income not used to keep servicing conservative
Using conservative income assessment strengthened the application and reduced risk.
Professional Lending Advantage
As a health professional, FA qualified under a lender’s professional policy.
Key benefit achieved:
LMI waiver.
This allowed purchase with a lower deposit while avoiding Lenders Mortgage Insurance, saving significant upfront costs.
Savings Position
Funds to complete were increased slightly for privacy protection.
Total savings used were approximately $185,000.
Strong genuine savings supported approval for both land and construction stages.
Why Land and Construction Was the Right Strategy
For rentvestors, building new property offers advantages:
• brand new home attractive to tenants
• depreciation benefits for investors
• lower maintenance costs
• modern design suited to rental demand
The clients secured a future ready investment property aligned with long term wealth goals.
The Outcome
The clients successfully achieved:
• first property purchase as investors
• interstate property ownership
• rentvesting strategy implementation
• LMI waived approval
• strong rental income supporting servicing
They continue living and working in Tasmania while their Queensland property builds equity and rental income.
Lessons From This Rentvesting Success Story
You do not need to buy where you live first.
Successful buyers often:
• separate lifestyle choice from investment strategy
• leverage professional lending benefits
• invest interstate based on market opportunity
• enter the market earlier instead of waiting
Rentvesting provides flexibility without delaying wealth creation.
Frequently Asked Questions
Why Clients Choose Laxmi Home Loans
We help clients across Australia structure lending aligned with long term financial outcomes.
We assist:
• first home buyers
• rentvestors
• healthcare professionals
• interstate investors
• migrant families building property portfolios
You may already be closer to property ownership than you think.
Thinking About Rentvesting?
A strategic review of your income, savings and goals can reveal opportunities many buyers overlook.
