Rentvesting vs Buying: The $3M Lesson Every High-Income Earner Should Learn
Why would I buy a $3M home…
when I could rent it for almost $10,000 less every month?
Let me explain, because this one catches people off guard — especially high-income earners.
Palm Beach, NSW 🌊🏝️☀️
We went up there for Mum’s 60th over the break.
That’s Mum on the sand in the photo.
Waves crashing. Cool breeze. Sun sinking behind the headland.
One of those perfect days.
And of course… I couldn’t help myself.
I opened realestate.com.au.
Occupational hazard of being a buyer’s agent — I scroll property listings everywhere I go.
I checked Palm Beach.
Then Avalon, because I thought it might be a touch more reasonable.
Found a lovely 4-bed, 2-bath home on 1,000 sqm.
Pool. Beautiful outlook.
Worth roughly $3M.
And here’s where things got interesting.
The Rent vs Buy Reality Check
The place was listed for rent at:
$1,850 per week, or
~$7,400 per month
To buy it?
I crunched the numbers:
Mortgage + interest + rates + insurance ≈ $17,066 per month
Nearly a $10K difference.
Same home. Same lifestyle.
Very different financial outcome.
This Is Exactly Why Rentvesting Exists
Even if I could afford to buy that home…
I wouldn’t.
I’d rent it.
And I’d invest some (or all) of the $10K difference into assets that actually grow.
Because when you invest:
You’re building equity
You’re creating optionality
You’re not locking yourself into golden handcuffs
You’re putting your money where it performs, not where it just looks good
And here’s what most people forget:
Investment debt is tax-deductible. Your home loan isn’t.
If you’re on a solid income, you get 35–47 cents back for every dollar of interest on your investment debt.
The tax system is literally built to encourage investing, not lifestyle overspending.
Buying Too Early Can Hurt You More Than Help You
Stretching for an expensive home too soon can:
Crush your borrowing capacity
Slow down your portfolio
Reduce your buffers
Increase emotional + financial stress
Delay real wealth building by years
People love the idea of owning a big home.
They don’t love the repayments.
So… Would I Buy the $3M Home?
Right now? No.
Not until my portfolio pays for it.
Not until it’s a choice — not a strain.
For now?
Rent the lifestyle.
Own the assets that grow.
Best of both worlds.
What’s not to love?
Written by JP Ghabriel
Founder & Buyer’s Agent — Investr.
7.2M+ personal property portfolio
50+ client purchases and counting
Helping Australians build growth-focused portfolios through smart, long-term property strategy.
