Can't Afford Where You Want to Live? | Pat Casey & James Thompson

Rentvesting still works for the right person. It's simply no longer the automatic first move. Whether you buy your home first or invest first now turns on your next ten years, and on what you buy. For years, renting where you want to live and buying an investment somewhere more affordable was the default for many first-time buyers. The residential market has since reset. Borrowing capacity has tightened, yield and cash flow now matter as much as growth, and the negative gearing changes, legislated to apply from 1 July 2027, limit negative gearing on residential investments to new builds. Buying a home first is back in contention for some, while rentvesting still suits people who can't buy where they want to live, or can't yet say where they'll be in a decade. Host Pat Casey, Rethink Wealth Director and Financial Planner, is joined by James Thompson, Rethink Group's Residential Senior Buyers Advocate. Pat brings the planning lens and James the buying one, and together they work through both paths: who each one suits, what each one costs, and why the property you buy decides more than the order you buy it in. In this episode: Why rentvesting still works, and who it suits now How the market has reset, and why yield and cash flow matter as much as growth The question to answer before buying your first home: where will you be in ten years? Why your home is an investment decision too, even if you never rent it out On the same $1.2 million of property, why buying a home first can start with $120,000 and investing first closer to $180,000 (an illustrative example) Why the advice your parents followed worked for them, and what has changed Why a weak property stays weak, whatever you call it Book a consultation: https://rethinkgroup.com.au/ipw-youtube 00:00 Trailer 01:33 Home first or invest first: has the answer changed? 02:57 What rentvesting means, and why it's being questioned 04:06 How the residential market has reset 08:06 Choosing the right investment property now 15:26 First home buyers and investors at the same price point 17:01 Buying your home vs rentvesting: the cash flow difference 21:06 Is your home a lifestyle choice or an investment? 26:05 Why buying your home first is more compelling now 30:49 An upgrader's market, not a downsizer's 35:25 How the property cycle plays out 41:39 Growth versus income, and buying at a fair price 44:54 The upfront cost of each path on $1.2 million 48:18 Who rentvesting still suits 49:07 The ten-year question 50:47 Why your parents' advice worked for them 54:00 Key takeaways for buyers 56:19 So, does rentvesting still work? 58:01 Closing points This podcast is general information and education only. Any financial product advice is general advice and doesn’t take into account your objectives, financial situation or needs. Consider whether it’s appropriate for you and seek personal advice from a licensed financial adviser before acting. Read the relevant PDS and Target Market Determination before deciding on any product. Views of guests are their own. Client stories are anonymised or hypothetical, and figures are illustrative only. Past performance is not a reliable indicator of future performance. Rethink Wealth Pty Ltd (ABN 34 686 619 590) is a Corporate Authorised Representative (No. 1315676) of Walker Lane Pty Ltd (ABN 70 626 199 826), AFSL 509305.