From $8.7M to $33.8M: Step-by-Step Property Growth Blueprint

Big goals only work when numbers add up. This episode breaks down a clear roadmap to scale from a 10-property, $8.7M portfolio to $20.8M by 2030 and $33.8M by age 50 using conservative 5% growth, targeted equity manufacturing, and disciplined interest-only leverage.

We walk through the sequence: a strategic Melbourne purchase, three dual-occupancy builds for equity uplift and stronger cash flow, six additional metro buys around $750k each, an SMSF purchase, and a farm strategy generating short-stay and cattle income structured for lender-friendly serviceability.

You’ll hear the key numbers—build costs, deposits, valuations, rent projections—and how rental income could grow from $307k today to ~$779k by 2030. Long-term modelling shows how a $12.1M debt load can reduce risk as LVR falls toward ~35.7% by 2041, with rental income nearing $1.46M.

If you’re building from scratch or scaling for financial freedom, this gives you a practical blueprint: how to stage buys, recycle equity, prioritise dependable cash flow, and use compounding as a safety tool. Subscribe and comment with your growth outlook for next five years.

Chapters

• 0:00 Big Goal And Current Position
• 1:41 Short-Term Plan: Buy And Build
• 4:13 Dual-Occ Strategy And Equity Uplift
• 6:34 Projections To 2029 And Gap To 20M
• 8:14 Medium-Term Purchases And Equity Recycling
• 10:47 SMSF And Farm For Cash Flow
• 13:12 Hitting 20.8M: Debt, Yield, LVR
• 16:08 Why Good Debt Lowers Risk Over Time
• 18:12 Looking To 2041: Wealth And Income
• 20:20 Action Steps And Invitation To Connect

Transcript

SPEAKER_00: 0:00

A 20 million property portfolio in less than 10 years. My name is Casey Taylor. I'm the host of the Tailored Property Wealth podcast. And in today's episode, I'm talking about how I plan to build my property portfolio to$20 million by 2030, meaning that I've built a$20 million property portfolio in less than 10 years. I'm also going to be breaking down heaps of the numbers on what my portfolio looks like now and into the future, and how I'll have a property portfolio worth$33 million at the age of 50. Let's get into this one today. And we're going to start off with some of my short-term plans, medium-term plans, and how I plan to be able to get on the trajectory to get to that$20 million property portfolio. And then holding that for a longer period of time until the age of 50, where it'll be valued at$33.8 million. I want to start off by saying as well, these goals are big goals. They're stretch goals. It's really going to be pushing the envelope on what I can achieve with my property portfolio. It might mean that I don't actually tick all the boxes and make this happen because the goals are so large. However, you do need to be able to set those goals that are challenging. They're hard to hit. And if you do fall short, you're still going to be able to achieve a massive amount and get a lot of results. Right now, the property portfolio is sitting at$8.7 million. Now that consists of 10 properties. It consists of an own-occupied property and then investment properties. And it's going to really lead into my plans within the portfolio in the next 12 to 18 months. I plan to purchase another property, and then I plan to build three new dwellings on existing properties. This is going to really manufacture equity and then build into the further purchases to be able to hit this 20 million goal. The first purchase that I will be making is a Victoria purchase, and I'm setting a budget of$650K for that purchase. That one I'll be looking at within the Melbourne marketplace, and it will be looking at a property that is essentially a buy and hold property, but most likely where we can add a secondary dwelling down the track, increase that cash flow to be able to hold long term. Then we will be looking at creating the new builds on three of the dual lock properties that I have. This jewel lock strategy is where you secure an established property on a large piece of land with a 20-meter frontage, side access, where you can then build that second dwelling at the back. You still rent the front dwelling out, and then at the end of that, you can strat a title, separate those titles, and then the valuations on completion have a very large equity uplift from what it costs to build that property versus the valuations on completion. Roughly it's$450,000 to build those new dwellings. And then we do work off a valuation on completion of$700 to be really safe, but a lot of those are transacting in the 800s now. So there's a massive equity uplift with this strategy. There's some really good benefits long term to that. And then that is where it's going to set me up into my medium-term strategy once those dual lock builds are completed. So within the next 12 to 18 months of making that new purchase, which will happen probably in the new year now, just by the time it takes to source, secure, find that property. However, these new builds, I will do one at a time. And it's probably going to take 18 months to be able to do those with a build of six months each. On completion, there's going to be with that purchase in the four Julocks, on completion, there will be a wealth-based increase of$3,050,000. That's working off$650,000 purchase and then$800,000 at that completion level of those properties. So in one year's time, when they're completed, that 12, 18 month period, but in 12 months' time, the portfolio currently at 8.7 mil with a capital growth rate over the next 12 months of 5%, we'll have the portfolio sitting at 9.135 mil. So that's just natural growth within the portfolio. But then if we factor in the purchase and the builds that are created, the property portfolio will sit at 12.185 million. So that's including the compound growth over that period of time, but the purchases and the additional dwellings created slash purchased. Now, based off that 12.185 mil, we then compound that over the next three years to 2029 in November. At 5% capital growth rate, to be conservative, we always factor off that. Now a lot of these properties will grow a lot stronger than that in that period of time. But the the property portfolio value will be sitting at$14.1 million in November 2029. So that's just with those short-term plays. So we're still got a hell of a way to go to be able to get to that 20 mil. And that's where the medium-term goals come into play off the back of these short-term plays and what's kind of happening in that 12 to 18 month period. Now, because of the equity creation within those new builds that will take place over the next 12 to 18 months, once they're completed, we will go out proactively extract equity from those builds. And it'll be a 20% deposit plus cost on those new purchases. And with these new purchases, it will be three properties valued at$750,000 for each of those purchases. So we'll build those, we'll be able to extract equity, use that as deposits, and go into another marketplace and purchase another property. Because we're doing that three times, we'll be able to purchase three new properties. That is going to add obviously the three new properties. Then what will also take place is over this period of time, naturally with the growth in that property portfolio, we're going to have enough equity to be able to pull out and extract for 20% deposits on another three assets valued at$750,000. Now we might be able to purchase a little bit less than these properties potentially, or we might need to go a little bit over, but we're working off some rough figures for now to be able to forward plan and project what we're going to do. So that would be six property purchases in essentially the next three and a bit years, once we get to the completion of those new dual lock builds. There's also going to be a purchase within the self-managed super fund that I plan to do, which will be a separate entity. And there'll also be one more purchase, which is I am planning to purchase a farm, which is a little bit different to the fundamental buy and hold properties. Because of the size of the portfolio now, because of what is currently in the portfolio, that is where we can go out and we can start to purchase assets where we can really manufacture some cash flow on those properties, which will also manufacture a higher value of that property. Because once we start to look at farms, they they really start to operate in a way where the value of that property comes back to the income of the property. Now, this farm purchase will be aiming for about$1.5 mil as a purchase. This property will be something where we can create some short-term accommodation on those properties. It's going to be quite high return on investment from a cash flow perspective. Short-term is a whole nother beast in itself. From a lending perspective, we have to remember that some lenders actually won't take that rental income into consideration as well. So you might be getting that in, but when we're going and we're servicing with a lender, they might not take that into consideration. And that's why it's hard early on in a property portfolio. Now, that farm, I'll also be planning to have cattle on that farm. The the ins and outs is still will still be worked out once we start to really secure that property. But that will be additional income on that farm. It'll be something where we can run 50 to 100 head of cattle. The initial plans at the moment, and what I want to do is run cattle, have high quality bloodlines to create that quality cattle as well. That is just the very simple foundations and plans for that at the moment. As time goes on, we get closer to that. I'll really build that strategy out in depth. So those medium-term goals over the next year and a half to three years, there's going to be six purchases at$750,000. There will be the purchase in the self-managed superfund of$700,000 and also the farm at$1.5 mil. So that is a total asset value of$6.7 million. If we project that through to 2030, based on the property value that we plan in 12 months' time, which would be the$14.1 mil, with that additional asset value would be sitting at$20.8 million. Now that's working off the compound effect. That's working off the purchases that we've made as well. That's obviously going to allow us to go well over that 20 mil. However, it's it's building a little bit of a buffer in to the scenario. But that is the plan of where it will be and what it will look like by 2030. Now, this is something I want to touch on because there's a lot of people out there that are scared to get into debt. If they get into debt, that's bad. The more debt you're in, the worse financial position you're in. However, your net wealth base will grow larger, the more good debt you can get into and using that compound effect over time. And I'll really break that down at the end of this as to how your LVR drops, even though you don't pay off debt. So current debt is roughly sitting at 5.5 mil based off 80% lens on the builds, on the purchases, of the plan moving forward on what we'll be purchasing, that will be an additional debt level of 6.6 mil. So the total debt level will be 12.1 mil. But then if we look back, we've got the 20.8 mil property portfolio. Now, if we're looking at the rental income currently within the portfolio and then planning on what will be added with those purchases, currently the property portfolio is generating$307,000 per annum with the new purchases and factoring off a 4% gross yield for the new purchases, inclusive of$700,000 purchase and the$750,000 purchases. And then looking at the three Joule Oc builds, which will generate$650 per week once completed. And then projections on the farm and what we'll be planning to execute on that being$4,400 per week. On a weekly basis, that will be an income of$9,060 or$471,120 in terms of rental income annually. So that 20 mil property portfolio will generate rental income of$778,960 in 2030. Now I'm not factoring into the equation for this on the rental income growth that will take place across the portfolio through to 2030. And that's just from a cash flow perspective, being a little bit conservative. But we are going to expect that from the rental income growth to continue over that period of time, which will boost that up. There'll also be opportunity to add more cash flow based on the farm that I'm planning to purchase. That is just working off some conservative numbers. However, that will be something that will be boosted as much as possible, remembering that that's going to fall back into the value of that property and help boost that as well. That is the plan of attack with the purchases, the builds, and where the current portfolio is at. So in summation, once we head into 2030, there'll be a total wealth base of 20.8 mil. There'll be a total debt position of 12.1 mil. That will mean that there is a total net wealth base at that point in time of 8.69 mil. That would then mean at that time the loan to valuation ratio will be 58. Now that is leveraging up to 80% on all these new purchases. And this will be going interest only and not paying any of the debt down across the portfolio. But because of the capital growth in the portfolio and continuing to increase, even though that debt level remains the same, the LVR continues to drop. It lowers your risk, it lowers your risk to the lenders as well when you're going and obtaining finance. So you're going to get benefits from an interest rate perspective versus when you're sitting at 80% across the portfolio. And this is what people do not get. Over time, with the compounding effect and the capital growth, your LVR will drop despite not paying any of your debt down. Rental income will be a total of$778,000. Just remember, haven't factored in any rental income growth to be conservative from a cash flow perspective at that time. That doesn't look too bad. It is a big goal. It's going to be hard to achieve that, and it's going to mean constantly looking to purchase property. We also have to remember that there is going to be capital growth that will be stronger across the portfolio than that 5% per year, which is going to help with that growth. But for our projections, it is always good to be conservative and base that on a 5% capital growth rate. Because anything above that is going to be beneficial within the portfolio. Now, if we fast forward a little bit further again, and we look at where the portfolio will sit when I am 50, which will be 2041. Yes, I'm still 21 years old. If you do the numbers on that.7 million dollars. So my net wealth-based position has dramatically increased from that 8.6 mil. I haven't paid any debt down. However, that net wealth base, just being able to hold those properties for a long period of time, letting time and the compound effect do its thing, increases that net wealth-based position. My net wealth-based position increases far more than what I could have obtained if I was holding less good debt. The total LVR position, 35.7%. Remembering, I did not pay any debt down. Our LVR continues to drop with time, with the compound effect, with that capital growth. Now, with a 3% rental income growth rate, the rental income would be sitting at 1.46 mil in terms of the rental income. So over time, that passive income is continuing to build on the property. The longer you can hold before exiting out of property is powerful because you're getting that capital growth. But this is then in a position where you might enter a debt reduction phase, you might choose to sell a couple of those assets. Or because of the passive income that the property portfolio is creating, you might just go and flick one of those levers on one of the properties to principal and interest and start to reduce the debt just on one security, which is going to help that net wealth base position. There's a lot of things that you can do to be able to improve this, but we're just looking at those simple projections over a period of time and what it looks like. But you can really start to be proactive, make more decisions within the portfolio to improve that position even further. I hope you have enjoyed this episode. This episode is really diving deep into the plans within the property portfolio. If your plan is to build a property portfolio, it's to purchase one or two properties. This is something that you need to be doing. You need to be sitting down and mapping out how I need to get to my long-term goals. What do I need to be doing now to set me up in 12, 18 months' time to set me up in three, four years' time? It is that compounding effect. It is those small one percenters and those daily habits that you must be implementing to get towards that long-term goal. I hope you've enjoyed this one. It's a big dive into the portfolio. I hope it hasn't overwhelmed you with the data and the numbers. If you want help to be able to build a property portfolio, if you want to execute on it the right way, get those high performing properties so you can leverage equity and go again and again and again reach out. We can book in a call and see if you might be one of the limited clients that we work at each month. Thanks for listening, and we'll see you on our next episode. Bye.