Think you’re not ready to invest in property? Think again.

We recently heard from a young couple, Ashleigh and Chris*, who had bought their first home a few years ago.
They now have two kids in primary school, busy work schedules, and all the usual costs that come with raising a family. And like most people in that stage of life, their focus had been on keeping things running smoothly, not necessarily on what came next.

When the conversation turned to property investment, their initial reaction was pretty typical. “It’s something we’ll look at down the track.”

It’s a common mindset, and one that often delays people getting started. Once we reviewed their position, it became clear they were far closer to starting their investment portfolio than they realised.

A stronger position than expected

Their home is worth around $900,000, with approximately $500,000 remaining on the loan. When broken down:
• 80% of the property’s value = $720,000
• Existing loan = $500,000
• This left around $220,000 in usable equity.

Instead of needing to save a deposit from scratch, they had already built one, they just hadn’t realised it.

How we made it happen

We then started working through what a first investment could look like based on their position. Based on their situation, we explored a purchase around the $750,000 mark.

At that level, a typical structure looks like:
• $150,000 deposit (20%)
• $30,000 – $35,000 in purchasing costs
• That means you’ll need around $180,000 required to get started

We helped structure the deal so this could be funded using the couple’s available equity, meaning they didn’t need to draw on savings or significantly change their lifestyle. From there, the focus shifted to making sure the purchase aligned with their longer-term strategy, not just getting into the market, but setting up the next step as well.

Making the numbers work

The next step was confirming whether the purchase was manageable from a lending perspective.
With a combined income of around $160,000 – $180,000, they were in a position to service the additional loan, particularly when factoring in rental income.

For example:
Estimated rent: $650 – $750 per week
Equivalent to $34,000 – $39,000 per year

This income helps offset the cost of holding the property and improves overall serviceability.

Where to start

For many homeowners, the equity built up in their home could be the starting point for their next investment.

If you’ve been paying down your mortgage and your property has grown in value, it may be worth exploring what that could mean for your future plans. A quick conversation can help you understand where you stand, what options may be available and whether property investment is the right next step for you.

A mortgage broker or financial adviser can help you understand your borrowing capacity and the financial side of using equity.

Then, once you know what may be possible, we can help you explore suitable investment opportunities and build a property strategy around your goals.

*This case study is provided for illustrative purposes only. Names, details and circumstances have been modified to protect client confidentiality.