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How to use government subsidies to dip your toes into investing
“Livevesting” is replacing rentvesting, according to one property adviser, but are you on top of this new trend?
How to use government subsidies to dip your toes into investing
“Livevesting” is replacing rentvesting, according to one property adviser, but are you on top of this new trend?

Once-in-a-generation events, such as the global coronavirus pandemic, have given rise to a new trend in property investing – livevesting.
According to Richard Crabb, founder and managing director at ASPIRE property adviser network, a new investor demographic is fast replacing rentvestors as Australia’s property market winners.
“Livevesting has resulted from an extraordinary confluence of factors which make it incredibly feasible under current circumstances to build a property portfolio from scratch,” Mr Crabb said.
Livevesting is a new termed coined to represent home buyers who qualify for government subsidies and select their initial property based on its long-term investment potential rather than its suitability as a home.

Record-low interest rates for home buyers are helping fuel the livevesting movement, too.
“Due to COVID, we have reached a hallmark level of financial assistance from both the federal and state governments, particularly for first-time buyers looking to purchase new homes.
“This, combined with the exceptionally low interest rate environment, has resulted in the ability to acquire a new home with minimal deposit and a monthly loan repayment that’s well below rents in the same location,” said Mr Crabb.
He explained that livevesting buyers look at their home as a long-term investment and are prepared to move out if opportunity presents after they’ve completed a minimum of 12 months’ residence.
“To successfully adopt livevesting, buyers must have a long-term investment strategy and choose the right sort of asset from the get-go.”
Mr Crabb said maximising returns from the strategy required the buyer and the property to meet certain criteria.
“These buyers must set aside the idea of the ‘forever home’ and choose locations based on long-term value growth potential and renter demand rather than being hung up on where they’d like to live or what their heart’s desires are,” said Mr Crabb.
He opined that when livevesting, buyers must also be smart about their home’s level of fit-out.
“Shoot for decent, low maintenance, good quality fittings, fixtures and finishes, and avoid builder upgrades that will tip into overcapitalisation.”
Mr Crabb said these investors will also enjoy years of depreciation benefits in the future.
“Living in your investment first doesn’t disqualify you from claiming depreciation benefits in the future, and new homes are a great way to maximise this upside.”
Grants and subsidies by state
The federal HomeBuilder grant
HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home.
The qualifying guidelines for receiving the HomeBuilder grant include:
- A taxable 2018-19 income below $125,000 per annum for an individual, or $200,000 per annum for a couple;
- You enter into a building contract before 31 December 2020; and
- The value of your new-build principal place of residence does not exceed $750,000.
Additional state assistance
NSW
First Home Owner Grant (New home): $10,000
Victoria
First Home Owner Grant: up to $20,000
First home buyer duty exemption, concession or reduction is also applicable.
Queensland
First Home Owner Grant: $15,000
Regional home building boost grant: $5,000 (after the purchase or construction of a brand-new house, unit or townhouse valued at less than $750,000)
First home concession: You can claim a concession for transfer duty when acquiring your first residence if you meet certain requirements. Please note, the first home concession applying to a home valued under $550,000 can save you up to $15,925. The home concession may still apply for a home valued over $550,000, as long as you meet certain criteria.
Western Australia
First Home Owner Grant: $10,000
First home owner rate of duty: Dutiable value $0-$430,000 – Not duty payable
South Australia
First Home Owner Grant: $15,000 (new homes only)
Tasmania
Tasmanian HomeBuilder Grant: $20,000
Northern Territory
BuildBonus Grant: $20,000
First Home Owner Grant: $10,000
Stamp duty discount – you may be able to get up to $18,601 off stamp duty.
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