From prosolution.com.au: Rentvesting is a growing strategy in Australia that allows individuals to rent where they wish to live while investing in property elsewhere, in response to rising housing affordability issues.

Pros of rentvesting include tax-deductible expenses and better short-term cash flow, while cons involve paying rent with after-tax income and potential capital gains tax on investments.

Although home ownership generally provides a stronger long-term financial position due to factors like being mortgage-free in retirement, rentvesting can be advantageous depending on personal circumstances, especially if market conditions or living plans are not conducive to buying a home.