How to live Rent-Free at 25
When Cathy first reached out, she was 25 - determined to buy her first home and set herself up the right way.
Like many first-time buyers, she wanted her property to work for her - to build equity, reduce costs, and open doors for the next investment.
Six weeks later, she’d done exactly that. Through a focused renovation, she created over $100K in equity and reduced her mortgage repayments so significantly that her rent income now covers nearly all her costs.
Cathy’s Starting Point
Cathy worked in sales in South Auckland. Before buying, she was commuting over an hour each way and saving every dollar she could.
Her original plan was to buy further south to fit her budget - but together we identified a stronger long-term opportunity closer to work: a well-located South Auckland property with scope to add bedrooms and boost value.
Her goals were simple:
Buy smart.
Renovate efficiently.
Use equity growth to fund her next property.
Why She Focused on Existing Homes
New builds rarely allow you to change their layout or add value through renovation.
Cathy’s decision to buy an existing property gave her flexibility - and that’s what created her result.
Property Snapshot
Location: South Auckland
Type: 3 bed / 1 bath + double garage (~90 m²)
Purchase Price: $756 K
Rateable Value: $760 K
Deposit: $230 K (savings + KiwiSaver)
Loan: $526 K
Weekly Mortgage: ≈ $886
Renovation Strategy
The focus was to maximise liveability and cashflow without over-capitalising.
In just six weeks, Cathy:
Added a 4th Bedroom: Converted part of the large living area (~8 m²) — Cost ≈ $8–10 K.
Added an Extra Toilet: Improving convenience for 4–5 occupants.
Refreshed Kitchen: Retained plumbing, upgraded bench top for impact.
Repainted & Re-carpeted: Modern, neutral palette.
Financial Breakdown
Purchase Price: $756,000
Renovation Cost: ≈ $80,000
Post-Reno Valuation: ≈ $940,000
Equity Uplift: + $104,000
Flatmate Rent: $720+/week
Mortgage Payment: ≈ $886/week
Rent Coverage: ≈ 81 % of mortgage
Her renovation not only increased the property’s value but also reduced her personal housing costs dramatically.
Living with flatmates now allows Cathy to direct extra cash toward savings and future investments - effectively living mortgage-free at 25.
What Happened Next
Cathy’s success didn’t stop there.
She’s now flipping small projects alongside her full-time job.
The skills she gained - from managing trades to understanding rent potential - now give her the confidence to invest remotely and grow faster.
