Keep rentvesting or convert IP to PPOR?
Based in Sydney and trying to work out the best move from here, especially in light of the 2026 Budget changes making PPORs look even more attractive as a wealth-building vehicle
Current situation:
- Currently rentvesting
- Own an investment property worth around $1.3m
- Loan owing is around $1.0m
- Because equity is still relatively limited, selling does not feel like a great option
- The IP could technically become my PPOR
- However, moving into it would be a serious lifestyle downgrade
- If I keep the IP and continue renting, it would likely take several more years of saving before I could afford a viable PPOR
So I feel like I’m stuck between two imperfect options:
Keep rentvesting
- Better lifestyle
- Keep the IP
- But miss out on having a PPOR as a tax-effective wealth-building assetMove into the IP and make it my PPOR
- Potentially better from a tax/wealth-building perspective
- But a major lifestyle downgrade
For people who have been in a similar position, how would you think about this?
Would you prioritise lifestyle and keep rentvesting, or bite the bullet and convert the IP to a PPOR because of the long-term tax advantages?