Ways to Grow your Property Portfolio | JR Prosperity Partners


Read the latest real estate market news, property market trends, investment tips and strategies.

4 Strategic Ways to Grow your Property Portfolio

Property is the most popular investment vehicle for Australian investors because it offers something that other asset classes don’t offer; the opportunity to earn both capital gains and rental income.
Real financial freedom is gained through purchasing multiple properties to maximise on those returns. The more property you have, the more money you will earn and the quicker you will gain your financial freedom.
Whether your have equity in your home or saving a deposit for your next investment, there are many ways to purchase more property and grow your portfolio.

1. Use Equity in your Home to buy an Investment Property
You will have equity in your home if your property has increased in value over time or if you have renovated to increase value. When your home is worth more today than when you bought it, 80% of the difference will be available to use for further investment. Gaining access to your equity normally requires a refinance, to adjust your mortgage to the higher property value. The money can then be available as a lump sum payment or a ‘Line of Credit’. Speak to your mortgage broker about which option is best for your circumstances.

2. Rentvest
Rentvesting is exactly as it sounds – it is both renting and investing. The idea behind rentvesting is that you will save money if your rent is less than your mortgage repayments or alternatively you can live in a more desirable location for the same amount. The biggest benefit to rentvesting is that you can claim tax deductions on your home, once it becomes an investment property. This includes the interest portion of your mortgage, your management fees, rates, land tax and maintenance are all tax deductable, in addition to being able to claim depreciation. This makes rentvesting a very attractive option to many successful property investors.

3. Invest with your SMSF
If you been working in Australia for some time now, you will have accumulated money in your superannuation fund. It is possible to set up a super fund and manage it yourself. This is very complex, but it can be done with the help of your accountant or lawyer. Once setup, your fund may be able to borrow up to 80% of the value of a property. There are several rules for what constitutes a suitable investment for your SMSF. Basically it comes down to purchasing a residential property at arms-length and renting it to tenants, your or family members cannot live in it and the property must be purchased for the sole purpose of providing retirement benefits to fund members.

4. Create a Syndicate
A syndicate is a great way for investors to pool funds to purchase property. You can create a syndicate for any number of investors, and each member has an equal share in both ownership and capital gains. Investing with family isn’t the best option, due to the relationship complications that can arise from financial stress. However, if you don’t have access to investors willing to create a syndicate, there are many companies available who specialise in creating syndicates and making decisions on the investors behalf.

There are many paths to financial freedom through property, and your chosen path will depend on your personal circumstances.  At JR Prosperity Partners, we want to help you on your journey to financial freedom. Contact us today on 1300 522 562 to find out how you can get started building your own property investment portfolio.