Think You Need a Huge Deposit to Buy Investment Property? Think Again.

Learn how to acquire your next investment property with zero cash down and let growth—not your paycheck—power your portfolio. We cover three practical strategies to fund a purchase without massive savings.

Discover how to:

• Unlock equity from your home or current investment for deposits and costs, often up to 80% LVR without lenders mortgage insurance.
• Use loan splits, cash flow buffers, and smart structuring to protect your portfolio.
• Structure family guarantor options with limited guarantees and refinance milestones.
• Identify high-growth locations with strong capital growth, low vacancy rates, infrastructure spend, and population growth.
• Turn one investment property into multiple with disciplined loan management and valuation checkpoints.

Whether you have untapped equity or are unsure where to start, this episode gives step-by-step property investment strategies, safeguards, and growth signals.

Chapters

• 0:00 Zero-Cash Strategy Overview
• 0:55 Leveraging Equity Up To 80 Percent
• 2:39 Building Buffers To Reduce Risk
• 3:29 Using A Family Guarantor
• 4:17 Growth Areas As The Engine
• 6:13 What To Research For Growth
• 8:08 Discovery Call And Next Steps

Transcript

SPEAKER_00: 0:00

How to purchase an investment property with zero cash. My name is Casey Taylor. I'm the host of the Tailored Property Wealth Podcast. And in today's episode, we are talking about strategies you can implement to be able to go out there, purchase an investment property without having to put cash down. There's a lot of people who think to purchase another property, you need to have cash saved. And that is just not the case. If you have an owner-occupied property, if you have an investment property, and you might have held that property for a couple of years, it might have available equity in that property that you can leverage to go into another property. And putting that equity to work is powerful to be able to build your wealth. You can't save your way to financial freedom or reduce debt just on your owner-occupied property to get to financial freedom. We're going to get straight into it today. And first, we are talking about leveraging that existing equity in depth. The reality is if you've purchased property over two years ago in the right location, you're going to have equity within that property. Now, in simple terms, that is the value of the property, deducting the debt on that property, and that is your equity position. Now, to be able to then go back up and extract equity from that property, you can typically go up to 80% of the value of the property without paying on lender's mortgage insurance. You can go higher paying lender's mortgage insurance, but at 80%, that would be where you can go to. If you've got a million-dollar property, you got$500,000 of debt there, you have equity of$500,000, and then going back up to 80%, that would be$800,000, and you've got$300,000 there of available equity. And you can go to the bank or to your mortgage broker, and you can get a side loan attached to your current security for the deposit plus costs. So you don't have to save up to be able to go out there and purchase that property. You're using that dormant equity in your property to go out there and purchase a high-performing asset. And this is what people who work smarter, not harder, do. They don't save their way to their future. They invest and put their money to work. And this is where it's extremely powerful. So that is the number one way that you can go out there and purchase a property with zero cash down. Now, I talk about this a lot as well. If you're sophisticated, if your mortgage broker is sophisticated, you can also borrow within that equity a buffer. So week to week, you don't have to sacrifice on your cash flow week to week from your wages. You can factor in a buffer so that that can help with your holding costs and the short for week to week. It reduces your risks from a cash flow and finance perspective, and it allows you to be able to hold that longer. And this is the wonderful thing with equity. Once you get into the marketplace, it actually gives you more options to be able to structure things to reduce your risk, mitigate that risk, which is what we want to do as an investor. Purchasing a property, there is always risk, but we want to be able to reduce that as much as possible. Now, the second one to be able to purchase a property with zero cash is the option of a guarantor. Not everyone is going to have access to this, no. But for some people, they might have a family member, it could be their parents, it could be an uncle, auntie, whoever it may be, and they may have a large amount of equity within their home, and they might be open to using that property as security to be able to go out there and allow you to purchase a property. So that is something that can get you into the property market without you having to save a deposit. Hopefully, you're already on your way to saving towards a property, but this can get you into the market sooner. And what you would do is if you go out there and you purchase the right property in the right location, it's going to grow in value. And as that property grows in value, you'll be able to refinance and you'll be able to get rid of that guarantor portion of the property. And then you just have the security of the property you've purchased and the debt, considering you can obviously service that, which would be something in the early stages. So that's another option that you can utilize out there to be able to get into the property market with zero cash. Number three, and this one is imperative so that you can guarantee in the future that you'll be able to purchase a property with zero cash. And that is going out and buying a property now in an area prime for growth that's going to perform and get that capital growth, create that available equity that you can extract out and go again into another property. This is the engine of your property portfolio. This is what's going to allow you to keep going. If you go out there and you focus on a cash flow property, which to be able to get something positive cash flow these days needs a massive deposit on the way in in cash, not leveraging equity. That cash surplus is not going to allow you to save quickly to another deposit. The equity and that growth in the property is what's going to get you there quicker. We have clients who can gear up and go again in a six, 12 month period. Because they've got the growth in the property we've helped them secure, they can now leverage the equity out of that property with its performance and go into another asset. So they've purchased one, they're growing their wealth there, but then in 12, 18 months' time, they've got enough growth to go again. And now they've got two assets working for them. And then on and on from there. So this is where buying in that growth location, getting that right is super important to be able to buy another property in 12, 18 months' time with zero cash. We have seen clients in the last 12, 18 months make 100, 150, 200 grand in capital growth. And they can go and cash that out and they can put that into another deal. This helps with diversification as well, creating multiple in income streams in multiple different states. So that's mitigating their risk and those market cycles and allows them to continue to build wealth. And then all of a sudden, in another 18 months' time, you've got two assets performing. You've got more equity and you can go again into another deal. So remember, capital growth and that equity and capital appreciation is the engine for your property portfolio. And it's going to mean in the future, you're guaranteeing you can purchase another property with zero cash. Some of the things you need to focus on to get into that area prime for growth is the core fundamentals, understanding the supply and demand of that market, the population growth. You want to understand the vacancy rates, the infrastructure projects, the diversified employment within that area. Is the local economy doing well? Is it an affordable location within the location you're targeting, in the metro or capital city that you're targeting? These are many things that you want to be understanding to ensure that you get that growth in the 12, 18 month period, get that above average performance because this is key to be able to continue to build wealth, build a portfolio, build a multi-million dollar property portfolio that is going to change your future. That is three things you can do to be able to purchase a property with zero cash. If you are not sure where to begin, but you have a property and you think you have equity, your property's grown in value, or you're not sure if it has grown in value, but you purchased a number of years ago. You can reach out to us and we can book in a discovery call and we can identify if you share the same values as us and if we can help you and you be one of the limited clients that we work with each month. Click the link in the bio. You can book that discovery call and we can see if we can help you build that property portfolio, build a multi million dollar property portfolio in the future. I hope you've enjoyed this one. If you know someone else that might see value in this episode, make sure you share it. See you next time. Thanks for listening.