Building a Property Portfolio: From One to Multiple Investment Properties
Growing a property portfolio isn’t just for the wealthy. With the right strategy, you can use one property to finance the next and build long-term wealth. Here’s how to go from owning one investment property to multiple.
1. Start with the Right First Property
Your first investment property should set you up for future growth. Look for a property in a high-growth area with strong rental demand. A good investment should increase in value over time, allowing you to leverage equity.
2. Leverage Equity for Your Next Purchase
As your property increases in value, you can use its equity as a deposit for your next purchase. Banks will typically lend up to 80% of a property’s value, meaning you don’t always need to save a new deposit from scratch.
3. Choose a Scalable Strategy
There are different ways to build a portfolio, including:
Capital Growth Strategy – Buying in high-growth areas and leveraging equity.
Cash Flow Strategy – Focusing on high-yield properties to cover expenses.
Balanced Approach – Combining both growth and yield for sustainable expansion.
4. Manage Your Risk
As your portfolio grows, so do your financial responsibilities. Keep cash buffers in place, diversify locations, and ensure your loans are structured effectively.
5. Work with Experts
A buyer’s agent can help you identify investment opportunities, while a mortgage broker ensures you have the best finance strategy. Surrounding yourself with the right professionals makes growing a portfolio easier.
6. Stay the Course
Building a property portfolio is a long-term game. Focus on making smart, sustainable investments rather than rushing to accumulate properties.
If you're looking to expand your portfolio and want expert guidance, working with a buyer’s agent can help you accelerate your growth.
Thanks for reading, see you in my next post.
Erin x
Erin May Watt
