Leverage Your Equity to Grow a Property Portfolio
If you’ve owned your home or an investment property for a few years, there’s a good chance you’ve built up equity. If you have, that’s great news! What many homeowners don’t realise is that this equity can be used as a powerful financial tool to grow a property portfolio without needing to save another large deposit.
At Crest Property Investments, we regularly work with clients to unlock the equity in their existing home and leverage it into a smart, long-term investment strategy. Here’s how it works—and why it could be your next step toward building wealth.
What is Equity?
Equity is the difference between the current value of your property and what you still owe on your loan.
For example:
If your home is valued at $800,000 and your remaining loan is $500,000, your total equity is $300,000.
However, not all equity is immediately accessible. Most lenders allow you to borrow up to 80% of your property’s value, minus your existing loan.
In this case:
- 80% of $800,000 = $640,000
- $640,000 – $500,000 = $140,000 usable equity
This amount can be used as the deposit and costs for your next investment property.
Why Equity is a Powerful Growth Tool
Using equity allows you to purchase a new investment without having to dip into your savings. This strategy is commonly used by investors to grow a property portfolio more efficiently.
Key benefits include:
- Faster access to the market
- The ability to take advantage of compound growth
- Increased borrowing power
- More income streams from multiple rental properties
This approach forms the foundation of many successful long-term property investment plans.
How Can Equity Be Used?
Usable equity can help fund:
- A deposit for your next property
- Stamp duty and associated purchase costs
- Property improvements or renovations
- Diversification into new areas or property types
- When used wisely, equity allows you to continue building momentum and grow a property portfolio with minimal upfront capital.
What to Consider Before Using Equity
While leveraging equity can be highly effective, it’s important to consider:
- Your borrowing capacity – lenders will assess your income, debts, and expenses
- Loan-to-Value Ratio (LVR) – staying under 80% avoids Lenders Mortgage Insurance
- Cash flow – ensure rental income or surplus funds can cover repayments
- Risk management – consider interest rate changes or market fluctuations
It’s also essential to speak with an experienced mortgage broker or financial adviser to structure your loans correctly.
How Crest Property Investments Can Help
At Crest, we specialise in working with clients who are ready to grow a property portfolio using equity. Our tailored advisory service includes:
- Assessing your borrowing capacity
- Identifying growth locations across Melbourne and beyond
- Sourcing brand-new and off-the-plan investment opportunities
- Coordinating finance and support services, including quantity surveyors
Our concierge approach means you’re supported from strategy through to settlement.
Final Thoughts
If you’re sitting on equity in your current home or investment property, you may already have what you need to take the next step. Used strategically, equity is one of the most effective ways to grow a property portfolio and build long-term wealth.
Let Crest Property Investments guide you through the process and help you make confident, informed decisions every step of the way.
How to source an investment property?
When sourcing an investment property, there are many opportunities that offer some excellent investment returns. There are many factors and fundamentals that should be considered to measure if the investment is best suited to you or not. Seeking advice from a property adviser (buyers’ agent) will be the best way to buy the right property for you.
At Crest Property Investments, we help buyers source high-quality brand new and off-the-plan properties across Melbourne and beyond—backed by research, data, and local insights.
If you’d like some assistance sourcing a brand new or off the plan property, please don’t hesitate contact us.
We would welcome the opportunity to help with your property purchase. Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
November 2025
