Get Out of the 1-Property Jail: 5 Finance Hacks to Build a Multi-Million Dollar Portfolio in Australia

Get Out of the 1-Property Jail: 5 Finance Hacks to Build a Multi-Million Dollar Portfolio in Australia

Are you stuck at one or two investment properties and wondering how other investors are scaling to five, ten, or even more?

You’re not alone — most Australian property investors hit a wall early, thinking they can't go further due to serviceability limits, loan restrictions, or rising interest rates. But in this eye-opening episode, we reveal 5 strategic finance tactics that top investors are using to break through the ceiling and build multi-million dollar portfolios.

🔥 What You’ll Learn in This Game-Changing Episode:

✅ How to reframe Lenders Mortgage Insurance (LMI) as a strategic tool — not a sunk cost. We break down how a $15,000 LMI expense could accelerate your portfolio growth by over $100,000 within 12-18 months.
✅ Why chasing the lowest interest rate might be killing your growth — and how opting for slightly higher rates (with the right lender) can unlock massive wealth-building potential.
✅ The power of using second and third-tier lenders with more flexible serviceability rules to unlock borrowing capacity.
✅ A real example of how one email and a simple portfolio review saved $3,000/year in repayments — and how a quick 3-6 month check-in could do the same for you.
✅ Advanced tactics like equity extraction for cash buffers and trust lending structures that serious investors use to scale their portfolios past the average.

💰 We don’t just talk theory — Casey shares how paying $19,000 in LMI led to $130,000 in capital growth in just one year, which funded the deposit for another property. This is real strategy in action.

🎯 Ready to Break Through the Property Investment Ceiling?
If you’re serious about growing your portfolio but feel stuck — like most investors do — don’t waste another year treading water.

👉 Book a free discovery call with our Director, Casey
 and find out if you qualify for our help to scale your portfolio faster and smarter.

https://calendly.com/casey-tayloredpropertywealth/15min 

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Chapters

• 0:00 Breaking the Property Wall
• 0:28 Lenders Mortgage Insurance as Investment
• 2:18 Don't Chase the Lowest Rate
• 3:28 Using Second and Third Tier Lenders
• 4:28 Regularly Review Your Finances
• 6:08 Equity Extraction for Cash Buffers
• 7:32 Trust Lending for Large Portfolios
• 9:09 Episode Closing

Transcript

Speaker 1: 0:00

Most investors hit a property wall at one to two properties, and in this episode we're breaking down exactly how you can set your finances up to ensure you build a multi-million dollar property portfolio and substantially create financial freedom. My name is Casey Taylor, I'm the host of the podcast and in today's episode we are talking about five finance related tips to build that portfolio, and we're going to get straight into it today. And the first one off the rank that we are talking about is lenders mortgage insurance. There's a lot of people out there that will do anything to avoid lenders mortgage insurance, but the reality is that lenders mortgage insurance is actually I like to look at it as an investment because you can go out there. Yeah, sure, you might have to pay 5, 10, 15k, depending upon where you're sitting. However, if that property then goes on to grow in value in that 12, 18-month period by over $100,000, then it's well worth the investment, because then in 12, 18 months time, you might be in a position to be able to extract equity and go into another property sooner. So it could mean one getting into the marketplace now when you couldn't, if you're looking at a 20% deposit, and if you can get in now when you couldn't, if you're looking at a 20% deposit and if you can get in now, when you couldn't have, you're building your wealth base, which is going to build your net wealth base and then over time, that is going to be powerful. The second thing is, instead of purchasing one investment property, you may be able to go and purchase two properties. Split that deposit across two, because it could be holding you back from that point of view, but you still have strong servicing to be able to go out there and service debt. So don't be afraid to use lender's mortgage insurance. On my second property, I actually paid $19,000 lender's mortgage insurance. That property went on to do $130,000. In the first 12 months. I was able to extract equity to go into another property, and that next property I purchased allowed me to go into future properties and build the property portfolio. Lenders, mortgage insurance is powerful. Don't be scared to use it.

Speaker 1: 2:18

Number two is do not chase the lowest rate in the marketplace. I see so many people make this mistake. You are not the lowest risk always to the banks, and that means you're not gonna get the lowest rate in the marketplace. Sometimes it means that you have to go with a higher rate, depending upon your situation. And if you're saying no to the lowest rate in the marketplace or saying no because you can't get the lowest rate in the marketplace, you are selling yourself short. Sometimes you have to absorb that higher cash flow, that higher rate, to be able to get into another property. It's not just about what it costs you, it's about that opportunity and what the decision you make today will look like in 5, 10, 15 years.

Speaker 1: 3:07

I've absorbed some extremely high rates over the last few years. As rates increased in my individual situation at that time resulted in higher rates. I made massive amount of capital growth in that period of time, which has allowed me to go into further properties massive amount of capital growth in that period of time which has allowed me to go into further properties. The next one, which kind of ties into number two, is utilising second and third tier lenders. So there's another mistake I see people make. They are just trying to go just to the big four just to get the lower rates. But if you look at second and third tier lenders, yes, one rates are going to be higher. However, depending upon their policy, their policy might suit your individual situation, which is going to be a bonus. However, not only that, they have stronger serviceability, meaning you can borrow more. It could be the difference between you getting into a mediocre or a shitty quality property or you move into a higher quality property as that property performs you proactively as an investor. Continue to look at that and you can come back and refinance to a lower rate in a shorter period of time. Just remember your rates and what you're obtaining right now are not going to be like that for 30 years if you're out there and you're being proactive.

Speaker 1: 4:28

The next one I'm going to lead into is reviewing your finances. It's a good segue. After the last point we touched on. You must, as a successful property investor, always be reviewing your portfolio, reviewing your properties and being proactive. Don't wait for the lender to call you and say, hey, we're giving you a price reduction. Last week I reached out to one of my lenders and I asked for a rate reduction and pricing. I was able to obtain half a percent discount, and that's on top of everything that's already come through this year and that means, on that, 0.5% on the $600,000 debt I have, that is a saving of $3,000 per year. I sent one email to my broker. They did the rest and I've been able to save $3,000. That's very powerful.

Speaker 1: 5:24

Always revisit your finances, look at what equity you have so you can go and get into another property, or, in six months time, revisit Is your rate the most competitive at the moment? Is there options to be able to reduce that? Because, yes, you might take on that higher rate, but in six 12 months time, as your position improves and changes, you might be applicable to get a lower rate than you are today. It is key to be proactive as an investor. There's a lot of people out there that are lazy. They don't look at these things when they must do this. Set yourself a reminder every three months to look at your finances, every six months to look at your finances, but you definitely need to be regularly looking at that.

Speaker 1: 6:08

The next one I'll lead into is extractions of equity for cash buffers. This is another one I see all the time we can't afford to hold this property because the reality is right now, it's going to cost you to hold a property. However, if you're in a position where you've got an owner-occupied property or you have an investment property and they have available equity, you can extract equity in addition to what you're extracting for another purchase and hold that as a cash buffer, whether it's in your offset account, whether it's in the redraw of the home loan. You can hold those funds there and that can assist with absorbing some of that shortfall. This is the beautiful thing about equity If you get the purchases right and they're performing, you can then use that equity to assist with cash buffers so that it can absorb that and you can go into further properties. Yes, it does come back to your service ability to allow this, but there are options there, because there's people on great incomes that have lifestyles that are in line with their income. So they make a lot of money but they spend a lot. So sometimes, on paper, they can service. However, they don't think that they can afford to pay for that mortgage.

Speaker 1: 7:25

This is where those cash buffers are imperative, and the last one talking about today is trust lending. I'm not going to go into a massive amount of depth on this one. However, when you are starting to build a property portfolio, I see people they're either one going to stick to a couple of properties or they continue on the journey and they're on their way to purchasing 10 properties, or five, six, seven, eight properties and starting to really build a strong property portfolio. It's not for everyone. However, once you start to really build on two, three properties, trust lending is going to be an avenue that you want to look at. This is something you need to talk to your accountant about. It's depending on your situation. However, trust lending when you purchase in different entities, it can mitigate risk in a number of ways, but it's a long game for finance because down the track, as that debt services itself, it can be excluded from lending, meaning that that debt is no longer existing on your serviceability and it allows you to have borrowing capacity that continues.

Speaker 1: 8:38

It is very powerful to take your portfolio to that next level. It's always something. You need to be strategic when you action this, and it's only for investors that are motivated to build big portfolios. Some people say they want to build a big portfolio, but the reality is, once they start to manage one, two, three properties, they stop because they don't have that mindset to take it to the next level. But for some investors out there who are super motivated to build a portfolio, it's going to be key. This is a short one today. This is, on finance, what it's going to do for you to build a massive property portfolio. If you can deliver on these things that we've gone over today, you're going to be able to get to that next level. Sounds simple. It is a bit more complicated than that, but if you stick to these, it's going to help you get to that next level. Hope you enjoyed and we'll see you on the next episode.