If you can only afford a unit in Sydney, the real question isn’t “Can I buy?” It’s “Is this the right asset to lock my capital into for the next 5–10 years?”
This guide compares buying a $900,000 Sydney unit to live in with renting it and investing elsewhere, using current numbers and real client examples.
What is rentvesting?
Rent where you want to live. Buy where the numbers make sense. Rentvesting doesn’t mean owning a home is bad. It means separating lifestyle from strategy, so you don’t stretch to the limit just to “get in”, and you keep capital available for a stronger investment.
The cost of buying a $900,000 Sydney unit
| 20% deposit | 5% deposit (first home buyer) | |
|---|---|---|
| Deposit | $180,000 | $45,000 |
| Stamp duty | ~$35,000 (~$19,700 if first home buyer) | ~$19,700 (first home buyer concession) |
| Other costs | ~$5,000 | ~$5,000 |
| Total cash needed | ~$220,000 (~$205,000 if first home buyer) | ~$70,000 |
The 5% path uses the Australian Government 5% Deposit Scheme (no lenders mortgage insurance, Sydney price cap $1.5 million). It isn’t free money: you borrow more and repay more. Eligibility rules apply.
| 20% deposit | 5% deposit | |
|---|---|---|
| Loan | $720,000 | $855,000 |
| Monthly repayments | ~$4,550 | ~$5,400 |
| Yearly repayments | ~$54,600 | ~$64,850 |
| Year 1 interest | ~$46,600 | ~$55,300 |
| Year 1 principal | ~$8,000 | ~$9,600 |
| Cost | Per year |
|---|---|
| Strata | $6,000 |
| Council rates | $1,200 |
| Water | $1,000 |
| Contents insurance | $500 |
| Maintenance buffer | $1,000 |
| Total | $9,700 (~$187/week) |
Renting the same unit instead
Rent: $800/week ($41,600/year).
| Cost to own | Cost to rent | Difference | |
|---|---|---|---|
| 20% deposit | ~$1,237/week | $800/week | ~$437/week (~$22,700/year) |
| 5% deposit | ~$1,434/week | $800/week | ~$634/week (~$33,000/year) |
Part of each repayment is principal, which you keep as equity (about $155/week in year 1 on the 20% path). Even so, that weekly gap, plus the deposit you’d otherwise lock in, could fund a stronger investment property elsewhere.
Units vs houses: what the data shows
Some units do grow. But over the long term, well-located houses on land have generally outperformed. On HtAG Analytics data to June 2026, Sydney house values rose 69.8% over ten years, compared with 11.0% for units. Cotality’s Pain and Gain report found 9.8% of Sydney unit resales made a loss in the March 2026 quarter, compared with 1.4% of house resales.
Real client case studies
Important: Prime Vantage did not buy these units. These clients bought them on their own, before working with us. They came to us after realising their losses, and we helped them reinvest. They’ve agreed to share their results.
J Wang: Sydney Olympic Park unit
Bought 2017 for $605,000. Sold 2023 for $540,000. A $65,000 loss over six years, plus years of opportunity cost.
N Chen: St Leonards unit
Bought 2021 for $736,000. Sold 2024 for $800,000. About 2.8% growth a year, before selling costs.
N Chan: Ultimo unit
Bought 2023 for $925,000. Sold 2025 for $890,000. A $35,000 loss, and it cost more to hold than renting would have.
What we helped them reinvest into
- Queensland house, about 600 sqm: purchased November 2024 for $492,000. Valued at $600,000 in January 2026.
When buying a Sydney apartment can make sense
It can work if you do proper due diligence: avoid new, “shiny” stock and buildings with high strata, and make sure it’s a quality apartment in a high-demand pocket. The same rule applies to rentvesting. Buying the wrong asset anywhere can stall your progress for years.
So, does rentvesting win?
On these numbers, rentvesting comes out ahead for building wealth, but only if the money you save goes into a quality investment rather than being spent. A few trade-offs to weigh:
- Your own home is free of capital gains tax when you sell. An investment property isn’t.
- Buying an investment first can affect your eligibility for first home buyer stamp duty concessions and the 5% Deposit Scheme later.
- An investment property has its own costs, such as management, vacancy and maintenance, though rent covers much of them.
- Renting means less long-term security than owning your home.
If you want a long-term home and security, buying can still be the right call. If your goal is building assets faster, rentvesting usually gets you there sooner.