Rentvesting.

Mechanic: instead of buying a $1.2M home in inner Sydney, rent it (~$900/wk) and buy a $600K IP in Brisbane / Adelaide / regional NSW with the same deposit and serviceability. The IP earns rental income (typically 4-5% gross) plus capital growth. Rent paid in the home-city is non-deductible but the IP costs are.

Tax shape: IP attracts deductible interest, depreciation (Div 40 + Div 43), management costs, repairs. Capital growth taxed at sale (CGT 50% discount post-12-month hold). The home-city rent is fully non-deductible. This is the hidden cost vs owning.

Pros: lifestyle preserved without compromise. Cheaper to enter market via affordable IP location. Potentially faster portfolio expansion if IP cashflow is strong. Flexibility, can move job or city without selling a house.

Cons: lose main-residence CGT exemption on growth (IP is fully CGT-exposed). Typically lose state FHB stamp-duty concessions (require owner-occupier intent within 12 months). Building equity slower because of paying rent and landlord's mortgage simultaneously. May struggle to transition into home ownership later as prices keep rising in target home market.

When it works: high rent-to-buy ratios (5%+ of property value annually paid in rent), typically Sydney inner ring and Melbourne inner. Pair with high-yield IP location (5%+ gross) to keep cashflow positive while growth compounds.