Did you know you might already have the deposit for your next investment property sitting in your own home?
For many Australians, equity is the hidden key to growing their property portfolio — without needing to save an entirely new cash deposit from scratch.
What Is Equity?
Equity is simply the difference between your property’s current market value and the amount you still owe on your mortgage.
For example:
- Your home is valued at $700,000
- You still owe $400,000
👉 That means you have $300,000 in equity
Banks typically allow you to borrow up to 80% of your property’s value, which means you could access a portion of that equity to use as a deposit for your next property.
How It Works
- Get your home valued. This helps determine how much usable equity you have.
- Speak with your broker or lender. They’ll confirm your borrowing capacity and the portion of equity you can safely release.
- Use that equity as your next deposit. This allows you to secure another property — either for investment or diversification.
It’s a simple yet powerful way to leverage your success and continue building wealth through property investing.
Why Smart Investors Use Equity
- You don’t need to save an entirely new deposit
- You keep your first property as an appreciating asset
- You can grow your portfolio faster — strategically and sustainably
As long as your properties are well-selected and cash flow–positive, this approach can steadily increase your financial independence and future choices in retirement.
Example: Turning One Home into Two
Let’s say your first home has grown in value over the past few years. By unlocking part of that equity, you could purchase an investment property that’s rented out — helping you generate income and grow your long-term wealth, all while your first home continues to appreciate.
That’s how many successful investors quietly build their portfolios over time.
Using equity isn’t just for experienced investors — it’s for anyone who’s built up value in their home and wants to make that money work harder.
Just remember: always seek professional financial advice and make sure your borrowing strategy aligns with your goals.
Ready to Explore Your Options?
At Property Friends, we specialise in helping everyday Australians build long-term success through strategic property investment.
👉 Book a free discovery call to see how you can use your home equity to start your next property journey.
