Written by Mel Dennis
Read time: 2min
If you already own an investment property — or even your own home — you could be sitting on untapped potential to grow your portfolio. With the right strategy and guidance, you may be able to use the equity in your current property to buy your next one.
Here’s how it works:
- What Is Equity?
Equity is the difference between your property’s current market value and what you still owe on your mortgage.
Example:
- Your home is worth $800,000
- You owe $400,000
- Your equity = $400,000
You can typically access 80% of your property’s value, minus what you owe. This is known as usable equity.
- How Can You Use It?
Usable equity can be drawn out via a loan top-up or line of credit, and used as a deposit on another investment property — instead of saving cash.
You may not need to touch your savings at all.
- Why It Makes Sense
- Faster growth: Building your portfolio sooner means potentially greater long-term gains.
- Tax benefits: Additional properties may bring tax advantages through deductions on interest, depreciation, and other costs.
- Leverage power: You’re using the bank’s money to grow your asset base, not your own.
- What to Check First
Before diving in, make sure to:
- Get a current property valuation (we can help with this!)
- Review your loan structure with a broker or your bank (please ask us for a referral to a great broker if you do not already have one)
- Assess your cash flow to make sure you can comfortably service multiple loans
- Get advice on where and what to buy next
- Why Strategy Matters
Not all properties make good investments.
We help our clients:
- Identify high-growth suburbs
- Choose property types suited for investors
- Avoid overpaying in hot or slow markets
- Understand the full cost of ownership
Ready to put your existing property to work?
If you’re wondering whether now is the right time to expand your portfolio, we’re happy to crunch the numbers and explore your options with you.
Book a free equity assessment with the LongView team today — no obligation, just insight.
