Why own more than one property?
There’s a lot to be said for investing in bricks and mortar. Not only is residential property a very popular investment
Along with the potential for your properties to grow in value – known as capital gains – you’ll also receive rental income. In some cases, where a property is ‘positively geared’, your investment can make an annual profit that adds to your cash flow.
Together with possible tax breaks on your investment properties, owning more than one rental investment could be surprisingly affordable.
How to grow your property portfolio
A number of strategies can be available to expand your property holdings.
If you’re planning to upgrade to a new home, one option could be is to hold onto your old home and make it an investment property by renting it out.
To make it work
Before you commit to renting out your current home, it’s good to be sure that it ticks all the boxes for a sound investment. That could mean checking the potential for
Put the equity in your rental investment to work
Similarly, if you already own an investment property, you may not have to save for a deposit on another rental place. There’s a possibility you could use the equity you’ve built up to get started now.
The first step can be to arrange a valuation of your investment property – your Aussie Broker can help here. This can show how much equity you have, and how much you may be able to borrow against the property to fund another rental investment.
From here, your broker can help you put together an application to access the funds from your equity to use as a deposit.
Even if the numbers stack up, it may be worth seeking financial advice to be sure that growing your property portfolio will help you achieve your long term goals.
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- Chapter One : Things to consider before investing in property
- Chapter Two : Determining where to invest
- Chapter Three : Investment properties by dwelling types
- Chapter Four : Finance for your investment property purchase
- Chapter Five : How to invest in property
- Chapter Six : Adding value to your investment property
- Chapter Seven : Positive and negative gearing
- Chapter Eight : Getting your loan
- Chapter Nine : Selling your investment property